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Partnership Company

Partnership Company

Partnership is a business where two or more person carry in on an agreed manner.

There is a partnership agreement that decides the rules and guideless of partnership in respect of sharing profit or losses, asset sharing, capital sharing, adding new partner and more. Each partner have share in profit and lose that make them liable towards property, labour, skill, money and many more. As partnership is among two or more person that brings diversity in experience in the business, thus, it is quite important to decide all the points in advance under a partnership agreement.

Exclusive Benefits of Private Limited Company

Easy to start

A Partnership is easy to form as no cumbersome legal formalities are involved.Its registration is also not essential.However, if the firm is not registered, it will be deprived of certain legal benefits.The Registrar of Firms is responsible for registering partnership firms.

Since the name of a Partnership firm is not registered, a Partnership firm can choose to have any name - as long as it does not infringe on a registered trademark. However, since the name is not registered, any other person can also use the same business name unless trademark registration is obtained.

Annual Filing NOT Required

A Partnership firm is not required to file its annual accounts with the Registrar each year unlike a Limited Liability Partnership or Company. Limited Liability Partnership's and Company's are required to file their annual accounts with Registrar of Companies each year.

Different types

General partnership: it is a most common form of partnership where the percentage of sharing of profit and lose and other obligations have been define in agreement in advance.

Limited partnership: here the obligations of partners towards the partnership are limited as depend upon the ratio of their investment to the business.This form of partnership usually followed for short term projects.

Joint venture: is another form of partnership which is usually followed for specific period of time. The partnership can held under ongoing partnership if partners continue to venture but that must be file.

Partnership Registration Process

Choosing the Partnership Name

The partners are free to choose any name as they desire for their partnership firm subject to the following rules:-

1. The names must not be too identical or similar to the name of another existing firm doing similar business so as to lead to confusion. The reason for this rule being that the reputation or goodwill of a firm may be injured, if a new firm could adopt an allied name.

2. The name must not contain words like Crown, Emperor, Empress, Empire or words expressing or implying the sanction, approval or patronage of Govt except when the State Govt signifies its consent in writing to the use of such words as part of the firm name.

Need Create Partnership Deed ?

The document in which the respective rights and obligations of the members of a partnership is written is called the Partnership Deed.

A partnership deed agreement may be written or oral. However, practically oral agreement does not have any value for tax purposes and therefore the partnership agreement should be written. The following are the essential characteristics of a partnership deed:-

  • Name and Address of the firm as well as all the partners.
  • Nature of business to be carried on.
  • Date of Commencement of business.
  • Duration of Partnership (whether for a fixed period/project).
  • Capital contribution by each partner.
  • Profit sharing ratio among the partners.

The above are the minimum essentials which are required in all partnership deeds. The partners may also mention any additional clauses. Some of the examples of additional clauses which may be mentioned in the partnership deed are mentioned below:-

  • Interest on Partner’s Capital, Partners’ Loan, and Interest, if any, to be charged on drawings.
  • Salaries, Commissions etc, if any, payable to partners.
  • Method of preparing accounts and arrangement for audit.
  • Division of task and responsibility i.e. the duties, powers and obligations of all the partners..

Rules to be followed in case of retirement, death and admission of a partner

The Partnership Deed created by the partners should be on a stamp paper in accordance with the Indian Stamp Act and each partner should have a copy of the partnership deed. A Copy of the Partnership Deed should also be filed with the Registrar of Firms in case the firm is being registered.

Need Register Partnership deed

Partnerships in India are governed by the Indian Partnership Act, 1932. As per the Partnership Act, Registration of Partnership Firms is optional and is entirely at the discretion of the partners. The Partners may or may not register their Partnership Agreement.

However, in case the partnership deed is not registered, they may not be able to enjoy the benefits which a registered partnership firm enjoys.

Simple and Transparent Pricing

Basic

Rs.14999 /-all inclusive price

    Company registration with DSC, DIN, name approval.

Standard

Rs.18999 /- all inclusive price

    Company registration with DSC, DIN, name approval.

Premium

Rs.24999 /- all inclusive price

    Company registration with DSC, DIN, name approval, incorporation fee, PAN, TAN, share certificates,

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