What is a Partnership Firm
• A partnership comes into picture when two or more people agree to go into business together and both might be from same family or same association, whether or not they have a written contract.
• Ideally, it is mandatory to validate the details in a partnership agreement that specifies each partner’s rights, responsibilities, and share of the profits.
• Partnership firms are registered with the Registrar of Firms
• Steps to Apply for partnership Firm
• Fill up basic requirement form
• We’ll collect all your documents and file them directly with the authority
• You’ll receive your completed Partnership Company package by mail
Tax Advice: Prepare & file business taxes can be complicated. Our expert CA/CS will help you to prepare and file tax forms for your Partnership correctly with a minimal fee and on time. Learn more about Taxes & Compliances.
Benefits & Liabilities of Partnership Firm
Benefits:
• Low tax liabilities
• Easy to control as managed by few promoters
• Freedom to choose any business name but make sure that the name is not a trademark of any other company or individual.
• Easy to start with a minimal registration process.
• Easy to shut down the company with very less compliances.
• Partnerships are easy to incorporate and flexible to manage. Unlike corporations and LLPs, you won’t have to file formation documents or annual reports with the state.
Liabilities
• Partners are personally liable for the business, including all debts and liabilities of the other partners.
• Once partners are engaged in a business, each partner is personally liable for the actions of that business, including the obligations of the other partners. There are no shields against personal liability.
• The share in a Partnership can be transferred to another partner after obtaining the permission of all the Partners in a Partnership
Documents required for Partnership registration
Documents required for Partnership registration
• Voter’s ID/Passport/Driver’s License PAN Card
• Voter’s ID/Passport/Driver’s License
• Passport-sized photographs
• Proof of registered office
Is a partnership right for you to start?
• When you want to start your business involving one of your family members, then partnership might be the right option for you to choose.
• One or more Partners can be designated to manage the Partnership Firm.
Taxes for Partnership Firm
A general partnership doesn’t pay any income taxes. Instead, profits and losses flow through to each of the partners, who are responsible to report it on their personal income tax returns.