Partnership Firm Registration for Business

Partnership Registration Service in India – In India, there are a big number of ventures which operate their business in a Micro, Small or Medium state. Selection of a Partnership as their form of business is one of the easiest options to register in India as it holds the least number of compliance and is easy to bring into existence. A partnership can be formed with two or more individuals coming together voluntarily to establish an entity for doing some business. But to legally contract or to have a legal stake in a business, there is always a need for registration.

What is Partnership Firm Registration for Business?

A Partnership firm in India can be formed following the rules and regulations provided under the Partnership Act, of 1932. It is a voluntary inclusion of two or more members to come together to form a single unit either to do a project, start a new business, do some contract, or work for the mutual benefit of the members. A partnership firm once registered becomes a legal entity under which the distribution of investment, profit, and responsibilities are divided as per a contract or a legal partnership agreement.

Partnership Registration is much simpler than registering an LLP or Company. For registration of a Partnership firm anywhere in India, all partners together have to approach the Registrar of Firms in their respective state. A legal contract is prepared before the Registrar stating the clauses and terms of the Partnership. There is no compulsion for the members to register their partnership before holding operations in the business, registration can be done after the operations of the business get started.

Why consider a Partnership firm?

Starting a Partnership Firm is one of the easiest options to register an entity with more members. Unlike, LLP or Company there are very few restrictions in the Partnership Entity for the entry or exit of members. Also, there is no obligation on the Partnership firm so formed for the contract entered into as it is the personal liability of the members to take care of the projects or proposals a partnership has contracted.

A partnership as an entity cannot be sued while its members can be sued by third parties compared to other business forms which can directly as separate entities be used by third parties. A Partnership is broken if a member opts out of the partnership agreement and a new agreement can be formed between new partners, but such flexibility is not provided in any other business form.

Is it beneficial to have Partnership Registration with members?

There is an unending number of reasons or thoughts by which a successful partnership can come to end. Without proper drafting of the charter document or registration of the partnership, there can’t be any legal suit filed against the other members of the partnership or the partnership firm. Also, with Partnership Registration partners are clear about their duties and rights in the partnership for which they can legally object in case of any argument.

What documents are required to apply for Partnership Registration?

Here is a list of documents required for the application of Partnership Firm Registration in India:

Partnership Deed /Agreement
Partnership PAN Card
Partnership Bank Account Details
Partnership Registered office proof
Partners KYC Proof
Partners Identification and Address Proofs
GST Registration
Other Business Licenses obtained

Let’s understand Partnership Registration in different states:

Partnership Registration in Delhi http://industries.delhigovt.nic.in/	Partnership Registration in Delhi can be done through the Department of Industries (Govt of Delhi) through Form 1.	Documents Required are Partnership Agreement, Identity Documents, and Address Proof of the Registered office	For compliance, the concerned officer shall be the Gazetted Officer / Advocate, Vakil, or Magistrate of Registered Accountant.
Partnership Registration in Maharashtra / Mumbai https://rof.mahaonline.gov.in/	Partnership Registration in Maharastra can be done through the Registrar of Firms (Govt. of Maharashtra).	Documents Required are Partnership Agreement with Marathi Translation, Forwarding letter, Copy of Deed Certified by CA/Advocate, and Non-Judicial Stamp paper	For compliance, the concerned officer shall be the notified district registrar of firms.
Partnership Registration in Haryana https://haryanaindustries.gov.in/	Partnership Registration in Haryana can be done through the Department of Industries and Commerce (Govt of Haryana).	Documents Required are Partnership Deed, Address Proof, Undertaking of all partners, etc.	For compliance, theconcerned officer shall be the District Registrar / Industrial Extension Officer or Assistant
Partnership Registration in Uttar Pradesh http://uprfsc.gov.in/	Partnership Registration in Uttar Pradesh can be done through Registrar Firms Societies and Chits (Govt of UP).	Documents required are Partnership Deed, Affidavit, and all documents of partners scanned	For compliance, the concerned officer shall be the Patal Shayak Level Registrar of every District
Partnership Registration in Punjab www.pbindustries.gov.in/	Partnership Registration in Punjab can be done through the Registrar of Firms (Govt of Punjab).	Documents required are Partnership Deed, Application Form, Rs 1000 Judicial stamp paper attested by Notary Public, and Partner ID proof with passport-size photos.	For compliance, the concerned officer shall be the Dealing Assistant of the Registrar of Firms or Superintendent of Firms or Registrar of Firms.

Partnership Registration in India can be applied offline in some states, while it is a completely online process in some states.

Compliance after Partnership Firm Registration

Once a Partnership Firm is registered the following compliances have to be undergone by the partners on behalf of the firm:

Application for TAN / PAN for the entity.
Accounting / Bookkeeping
Filing Annual Income Tax Returns with/without Audit provisions.
GST Registration and Return Filing
TDS Compliances and Returns
ESI / EPF Registration
State License Registrations and Compliance

How much time does it take for a Partnership Firm to register?

The duration for Partnership Firm Registration depends on state-based registration rules and regarding partnership formation. Also, it depends on the objections and issues raised by the Registrar of firms of respective state. On average, it takes about 10 to 15 days to register a partnership firm in India.

Partnership Firm Registration experts there at TaxReturnWala, help you register your partnership firm anywhere in India. We shall provide consultation on writing your partnership agreement, applying for partnership registration with the registrar, consulting on registration issues, legal documentation, tax registration, and all compliances of your business.

For assistance required on compliance with Partnership Registration, you can email us
at info@taxreturnwala.com.

Partnership Firm Registration for Business