An Overview of a Partnership Firm

The Indian Partnership Act 1932 regulates the partnership firms in India. A partnership firm, by definition, means when two or more people come together to build an entity and divide
the profit in the ratio decided by them during the formation. The people who come together to form the entity is known as the partners. Any type of profession, trade and occupation
comprises a partnership business, and a partnership firm is a contract between the partners on the agreed-upon terms, and the contract is known as the Partnership deed. The
partnership deed helps in governing the relationship between the partners as well as amongst the partnership firm and the partners.

We at Taxrepair ensure to take care of the end to end process required to start a partnership firm. With our expertise in the registration of the partnership firm, our team will help guide you throughout the process and help you grow as a business.

Document Required for Registering a Partnership Firm

• PAN Card scanned copy of all the partners (Self-Attested & Mandatory)
• Scanned copy of the partners (Not older than two months, preferably the latest one) (used for Address Proof):
• Self-Attested Latest bank statement
• Mobile or telephone bill
• Gas or electricity bill
• Application for registration of partnership firm as prescribed in Form – I.
• Specimen of Affidavit duly filled by the applicant
• A scanned copy of the Partnership deed on proper non-judicial stamp paper.
• The scanned copy of the rental agreement if the registered office is on leased or rented property
• The latest scanned copy of NOC from the property owner if the registered office is leased or rented.
• Affix court fee stamp and payment of specified partnership firm registration fee by demand draft.

Benefits of Registering a Partnership Firm

Ease of Incorporation

With an unregistered partnership deed, a general partnership can be formed, which takes only two or three business days. Furthermore, the incorporation of the partnership firm is
relatively easy compared to other forms of business structure. All one has to do is draft a partnership deed and enter into a partnership agreement. Besides, one does not require additional documents to start a partnership firm in a partnership deed. However, getting a partnership firm registered has its own set of benefits that the partners and firm can enjoy.

Fewer Compliances

One of the benefits of a partnership firm is that compared to some of the other business structures like the LLP, the partnership firm has to follow fewer compliances. The partners
have the liberty to initiate any changes easily required for the betterment of the business. Partnership firms do have legal restrictions on their activities, but it is fewer when
compared to the LLP. Furthermore, the dissolution of the Partnership firm is also easy and does not require too many legal formalities.

Distribution of the Profits and Losses

The distribution of the profit and losses of a partnership firm can be done equally, or the partners have the freedom to decide on the profit and loss ratio to share the profits and
losses of the firm. However, a single per shall not endure the burden of any loss incurred by the firm; it shall be distributed equally or as per the profit and losses ratio decided in the partnership deed.

Immediate Decisions

As there is no difference between management and ownership, the partners can take the decisions together, which can be executed immediately. The partnership firm in India, the
partners of the firm, have the liberty to perform activities on behalf of the firm. The partners also have the freedom to carry out specific business transactions without the
consent of the other partners of the firm.

Timelines for Registering a Partnership Firm

The process of registration of a partnership firm will take approximately 10-15 working days, subject to the timelines of the required approvals from the concerned government officials
and departments revert for the same. Although the registration of the partnership firm differs from state to state, our team of professionals are well-versed with the process required in every state that makes the registration process go smoothly.

So, contact Taxrepair for a seamless to help you begin your journey as a partnership firm.