What is Partnership Firm ?
Two or more than two persons coming together to form an entity and to carry a business collectively is called Partnership Firm. All the persons who come together agree to share profit as well as losses in the equal ratio or predetermined ratio. Partnership firms are relatively easy to start and are prevalent amongst small and medium sized businesses in the unorganized sectors.
A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors. With the introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership. Partnership Firm can be of two types registered and un-registered partnership firm.
- All the above mentioned documents must be submitted to the Registrar of firms of the state.
- A certificate of Registration is then issued, by the Registrar, and a copy would be given to all the partners.
- Also, a separate registration with the Income Tax department needs to be done in order to avoid any future problems and must obtain a PAN card and a bank account under the name of Partnership firm.
- Statement in Form 1 with the prescribed fees.
- Notarised True copy of the Partnership Deed.
- Proof of ownership or rent/lease of the location of your business.(e.g. Electricity Bill/ Water Bill or Rent/Lease/Leave and Licence Agreement of Business Place)
- Copy of PAN Card of partners
- Copy of Aadhaar Card/ Voter identity card