Partnership Firm
Partnership Firm is a business structure in which two or more people enter into a formal agreement (Partnership Deed) to own and run a firm together.
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Partnership Firm
A Partnership Firm is a business structure in which two or more people enter into a formal agreement (Partnership Deed) to own and run a firm together. Profits, losses, and obligations are shared among partners. The number of partners can range from two to twenty, and each partner is personally liable for the firm’s debts in an infinite amount. The creation is less formal than other business structures, allowing for greater decision-making freedom. While registration is not required, it is recommended for legal benefits. Partnerships are appropriate for small to medium-sized organizations that want active participation and shared obligations.
Registration Process :-
- Draft the Partnership Deed:
- Draft a comprehensive Partnership Deed outlining the terms of the partnership.
- Execution of Deed:
- All partners must sign the Partnership Deed.
- Stamping and Notarization:
- The Partnership Deed should be stamped as per the Stamp Act and notarized.
- Application for Registration:
- Prepare an application for registration, including the details mentioned above.
- Submission to Registrar of Firms:
- Submit the application along with the Partnership Deed and the prescribed fee to the Registrar of Firms.
- Verification and Registration:
- The Registrar verifies the documents, and upon satisfaction, registers the partnership and issues a Registration Certificate.
Essential Documents :-
- Partnership Deed:
- The Partnership Deed is a crucial document that outlines the terms and conditions of the partnership. It includes details such as:
- Name and address of the firm.
- Names and addresses of partners.
- Capital contribution of each partner.
- Profit-sharing ratio.
- Rules for decision-making and dispute resolution.
- Duration of the partnership (if any).
- The Partnership Deed is a crucial document that outlines the terms and conditions of the partnership. It includes details such as:
- Application for Registration:
- If the partners choose to register the partnership, they need to submit an application for registration to the Registrar of Firms. The application typically includes:
- Name of the partnership.
- Place of business.
- Names and addresses of partners.
- Date of commencement of the partnership.
- If the partners choose to register the partnership, they need to submit an application for registration to the Registrar of Firms. The application typically includes:
- Prescribed Fee:
- The partners must pay the prescribed fee for registration, which varies depending on the location and jurisdiction.
- Verification and Stamp Duty:
- The Partnership Deed must be executed on non-judicial stamp paper. The stamp duty is payable based on the capital contribution and other factors.
- Photographs and Address Proof:
- Partners may need to provide photographs and address proof, such as Aadhar cards or passport copies.
- Pan Card:
- Partners may need to provide a copy of the PAN card.