online Partnership Registration | Partnership Deed or Agreement

online Partnership Registration | Partnership Deed or Agreement

A Partnership is the most common form of business set-up in India wherein two or more individuals are united together to conduct business. There are two types of Partnership Registration viz. Registered Partnership Firm and Unregistered Partnership Firm.

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Partnership Registration

Partnership Registration:

A Registered Partnership Firm is registered under Registrar of Firms in respective states in India and having a proper Firm Registration Number. On the other hand, Unregistered Partnership Firm is executed on Stamp Paper of requisite value. In the eyes of law, both form are acceptable and there is no legal requirement of having a partnership Firm registered with Registrar of Firms. Thus, Partnership Registration can be registered or unregistered having nil effect on its legal existence. Further, there is no penalty on non-registration of the Partnership Firm with the Registrar of Firms. Therefore, In India, most of the Partnership Registration are in the form of unregistered Firms simply executed on Stamp Paper of requisite value under respective Stamps Act of the State.

We at ReturnFilings.Com will understand the purpose of your proposed partnership registration and thereafter will provide you Partnership Deed containing legal clauses on various aspects covering almost all scenarios to carry out a partnership business effectively and efficiently. Thereafter based upon the partnership deed after partnership registration, we will obtain a PAN (Permanent Account Number) in the name of Partnership Firm who carry out the business, we at ReturnFilings.Com will apply for PAN on your behalf and thereafter provide registration under GST to carry out the trade and service activities, Obtaining Import Export Code (IEC) to carry out import or export activities, obtaining FSSAI License from Food Supply and Standards Authority of India to carry out merchandising in food-related activities if required depending upon case to case basis, obtaining Udyog Aadhaar under Micro Small and Medium Enterprises (MSME) in order to avail MSME benefits, Obtaining TAN (Tax Deduction and Collection Account Number) in order to ease business transactions.

Partnership Agreement or Partnership Deed:

2 or more individuals or entities can join together to form a partnership, for partnership registration a legal partnership deed is required to be drafted and executed on requisite value of stamp paper based upon the quantum of capital contributed. After partnership Deed execution this becomes partnership agreement and the firm has option to get this agreement registered before Registrar of Firms of respective states. Delhi state provide online option for registration of partnership firm and can be accessed on http://pgc.delhi.gov.in

The option to get the Partnership Registration registered before Registrar of Firms is optional and the firm can continue to carry on the business based upon executed partnership deed. The procedure for registration of partnership firm before registrar of firms is to file application for registration to be submitted along-with true copy of partnership agreement and KYC proof of the partners. The partners need to present before the registrar of firms for authenticating the validity of persons entered in partnership.

Alteration in Partnership Agreement or Partnership Deed:

Partnership registration based upon partnership agreement executed is valid legal document to conduct partnership business in India. All the conduct of partners and working structure of business is governed by the partnership deed. This Partnership deed is always open to be modified and altered. Some of the common reason that require alteration in partnership deed are Admission of new partner, retirement or exit of any existing partner, change in profit sharing ratio, change in capital contribution ratio, or any other requirement of business which warrant the need for change in partnership deed. Every alteration in partnership deed is supported by supplementary partnership agreement, this supplementary partnership agreement after execution becomes part of original partnership deed but all the conditions stipulated in supplementary partnership agreement remain valid from the date of execution of supplementary partnership agreement unless otherwise stated.

Partnership Agreement once executed becomes valid document for conduct of partnership business, unless otherwise stated this partnership firm has perpetual succession means it can carry on business for indefinitely, however there are certain situation where partnership deed is executed for certain time period these are called “Partnership at Will”, this kind of partnership is dissolved at the will of partners. Another such kind of partnership is “Particular partnership”, this kind of partnership is executed for specific project or task, once such project is completed, the partnership will got dissolved.

Taxation on Partnership Firm:

Partnership Firm enjoys tax at flat rate of 30%, however the partners share of profit remain tax free is tax is paid by partnership firm before deduction of partners share of profit and if partnership firm pays tax after allowing deduction of partners share of profit, then in such cases, partners need to pay tax in individual capacity and enjoys benefit of slab rate in individual tax structure. The tax return of partnership firm and tax return of partners need to be submitted separately as Partnership Firm is also a separate legal entity and have a valid PAN in its own name.

Advantages of Partnership Registration:

The main advantage of partnership firm is easy formation as it requires less compliance and can be incorporated in a single day, partnership firm enjoys the benefit of a pool of resources as every partner bring its share of capital and asset and collectively it generates a huge pool of resources to start the business. Partnership Firm enjoys the status of better management due to the involvement of two or more partners. Partnership Firm enjoys the status of separate legal entity and thus the partners are liable as per the conditions stipulated in the partnership deed. Partnership Firm can continue perpetually and the new partners may be admitted, old partners may be got retire, addition, and deletion of partners do not affect the core business activity of the partnership firm if managed properly.

Apart from above, even after obtaining registration under various laws as per the applicability and requirement of the business, we at ReturnFilings.Com also fulfill various compliance on your behalf in order to ensure the proper and smooth functioning of business and to avoid unnecessary interest or penalty for non-compliance. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliance need.