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What is Partnership Business?

A partnership firm is a form of company in which several people work together to run a business. In India, there are two types of partnership firms: registered partnership businesses and unregistered partnership firms. Small businesses might consider forming a partnership since the process is simple and there are few legal requirements. Partnership Firm Registration Consultant in Mumbai Maharashtra, registration of partnership firm agent.

Partnerships have been legal in India since 1932, making them one of the country’s oldest forms of commercial formations. Even after it has been founded, a partnership business can be registered. There are currently no consequences for failing to register a partnership business.

Unregistered Partnership businesses, on the other hand, are denied certain rights under Section 69 of the Partnership Act, which primarily addresses the consequences of non-registration.

“Persons who have gone into a partnership with one another are termed individually “partners” and collectively “a firm,” and the name under which their company is conducted is called the “firm name,” according to the income tax. As a result, an unregistered Partnership firm is one that does not have a registration certificate from the registrar.

 

Why choose a Partnership Firm in Mumbai?

Partnerships firm in Mumbai are simple to create and do not require state registration or other formal procedures. A partnership agreement can be made verbally or in writing. Although it isn’t needed in certain places, you might choose to register your partnership.

If you’re a sole owner, partnering with one or more people means you’ll have extra resources, skills, funds, and time to dedicate to your company.

Each partner has the authority to make business decisions on behalf of the company. This collaborative management strategy can help with problem-solving.

As long as all partners agree, a partnership’s size, structure, or purpose can be modified at any moment. No legal action is required.

 

Types of Partnership Firms

Partnership at will

A partnership by will is one in which the parties have not to agree on the tenure of their partnership or the determination of their partnership.

Particular Partnership

When a person joins a partner with another individual in a specific commercial enterprise or for a specific business initiative or project, such as the construction of a road or the laying of a railway line, a specific partnership is formed. This type of cooperation will come to an end once the task for which it was founded is completed.

Partnership Deed

A partnership deed is an agreement between a firm’s partners that spells out the terms and conditions of their partnership. One of the most common forms of organization for beginning a new business is a partnership firm.

Advantages of Partnership Firms

The Advantage of Partnership Firms in Mumbai are as follows:

• There are fewer legal duties and the process is less formal.
• Getting started is simple.
• Sharing the risks
• Knowledge, skills, experience, and contacts are all available to you.
• Privacy for better decision-making
• Control and ownership are united.
• More cash, more partners

Documents required for Partnership Firms Registration

The documents required for Partnership Firms in Mumbai are as follows:

• Partnership deed.
• Partnership firm PAN card.
• Address Proof of the partnership firm.
• Identity proofs of all the partners.
• Partnership registration certificate (if the partnership has been registered)
• Any registration document issued by central or state government (normally GST certificate is submitted)

Partnership Firms Registration Process

Step 1: Submit a Registration Application

A completed application form must be sent to the Registrar of Firms in the state where the business is located, together with the required payments. All of the partners or their agents must sign and verify the registration application.

The application, which comprises the following information, can be sent or delivered to the Registrar of Firms.

• The company’s name.
• The firm’s primary location of operations.
• The location of any other locations where the company conducts business.
• Each partner’s date of joining.
• All of the partners’ names and permanent addresses.
• The company’s lifespan.

Step 2: Pick a name for your partnership firm.

A partnership firm can be given any name. However, some guidelines must be observed while choosing a name:

The name should not be too close to or identical to that of another company in the same industry.

The name should not include terms like an emperor, crown, empress, empire, or any other phrases that imply official permission or support.

Step 3: Obtain a Registration Certificate

The Registrar will register the firm in the Register of Firms and issue the Registration Certificate if the Authority is satisfied with the registration application and paperwork.

A completed application form and fees must be sent to the Registrar of Firms in the state where the business is located. All partners or their representatives must sign the application. Partnership Firm Registration Consultant in Mumbai Maharashtra, registration of partnership firm agent.

FAQ

Is auditing a requirement for partnership firms?

Annual audited financial statements are not needed for partnership businesses. Based on the turnover and other factors, a tax audit may be required.

What regulations apply to partnership firms?

Compliance for partnership businesses primarily consists of filing income tax returns, as opposed to corporate organizations such as LLPs and corporations, which must file both income tax returns and annual returns.

Is there a legal distinction between a partnership firm and a law firm?

This firm’s partnership and its partners are regarded to be the same entity. Partnership businesses have unlimited liability, and all partners are jointly accountable for the firm’s liabilities.

Is it possible to pass a partnership on?

The transfer of ownership of a partnership is subject to specific limits. Without the agreement of all partners, a partner cannot transfer the partnership. Partnership Firm Registration Consultant in Mumbai Maharashtra, registration of partnership firm agent.