Partnership Firms is an association of two or more persons who have agreed to share the profits of a business which they run together. This business may be carried on by all or anyone of them acting for all. The persons who own the partnership business are individually called ‘partners’ and collectively they are called as ‘firm’ or ‘partnership firm’. The name under which partnership business is carried on is called ‘Firm Name’.
A partnership is formed by an agreement between the partners. Registration of partnership is only optional, however it is advisable to register a Partnership Firm due to its added advantages.
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BASIC DETAILS REQUIRED:
- Name of the Business
- Address of the Principal Place of Business
- Business Formation Date
- Category: Business Type ( Manufacturing/Trading/Service Provider (or)Receiver)
- List of Partners Details( Name, Father Name, Age and D.O.B, Community, Resident address, Permanent address, Mobile Number and Email ID)
- Phone Number & Mobile Number(Authorized Person) of the Firm
- Email Id of the Firm
- Partners Capital Contribution Details
- Profit / Loss Sharing Percentage Details
- Signing Authority Person Details
DOCUMENTS TO BE SUBMITED BY PARTNERS
- Pan Card Copy(If Available)
- Partnership Deed
- Latest Bank Statement of the Partners
- One Passport Size Photo copy of each Partners
- All Partners ID Proof (Pan Card Copy) and Address Proof ( Passport, Driving License , Voter ID, Aadhar card any one of these )
- If Business Place is rented ( Rental agreement with company representations, EB Card Copy of the place) If rental agreement not available ( Place Owner Name and Address, Rental Period, How much Square feet, Rent Amount, Advance Paid Details, Terms and Conditions).
- If Business Place is Owned by a Partner ( NOC from the Partner, EB Card Copy of the place)
- If Business Place is Owned by the Firm ( Sale agreement and EB card copy of the Place)
Partnership is a contractual agreement between the partners to run an enterprise. Hence, it is relatively ease to form. Legal formalities associated with formation are minimal.
Flexibility in operations
A partnership firm is a flexible organization. At any time, the partners can decide to change the size or nature of the business or area of it’s operation. There is no need to follow any legal procedure. Only the consent of all the partners is required.
Partnership Firms do not need to appoint an auditor or, if unregistered, even file annual accounts with the registrar. Annual compliances are also fewer as compared to an LLP and Limited Companies. However, Partnership Firms need to file their Income Taxes and, service tax and sales tax depending on their turnover.