A Partnership firm is a business structure in which two or more persons agree to manage and operate a business in accordance with the terms and objectives set out in the Partnership Deed. Partnership firm is relatively easy to start and prevalent amongst small and medium sized businesses. Partners are held personally liable for all business debts. This structure is losing its prevalence after introduction of Limited Liability Partnerships (LLP) which provides added advantage to its partners like unlimited liability, which means partners are personally not liable for the debts of the business. But still Partnership Firm is one of the desirable options for small business man’s due to low cost of registration and minimum compliances. Registration is optional for General Partnerships it may be either registered or un-registered Partnership firm.
It is advisable to register a Partnership firm to avail the added advantages. For more get advice from expert team of VA Corp Advisory.
Partnership agreements
- Partners should create a partnership agreement that defines the important terms of their relationship.
- The business of firm can be carried on by all or any of them for all.
- Salary to partner should often be defined by the terms of a partnership agreement. Partners who work for the partnership may receive salary for their labor before any division of profits between partners.
- A silent partner is one who still shares in the profits and losses of the business, but who is not involved in its management. Such partner/investor should prefer to invest in limited liability partnerships (LLP) in order to insulate their personal assets from the debts or liabilities of the partnership.
- Number of partners must be minimum 2 partners which may be maximum 50. The Partnership Act does not put any restrictions on maximum number of partners. However, section 464 of Companies Act 2013, and Rule 10 of Companies (Miscellaneous) Rules, 2014 prohibits partnership consisting of more than 50 for any businesses, unless it is registered as a companyunder Companies Act, 2013 or formed in pursuance of some other law.
Documents Requirements :
- ID and Address Proof of Partners like Pan Card/Passport/Voter ID/Aadhar Card/Driving License Copy of the Partners.
- One Business Place Address proof :-
- if Property on Rented :- Need Rent Agreement and NOC from Landlord.
- if Property is own :- Need Electricity Bills or any other Address Proof.
- Note : Business place and home place can be same of the Partners.
Package Pricing for Partnership Firm@ 5500/- INR
- Drafting of the Partnership Deed by Legal Experts
- Apply for the Pan and Tan on the Firm Name.
Note :- Printing of the Deed on Stamp Paper and Notarization Services not included in the above package.