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Partnership Firm Registration is quick, simple, and would be possible online with Taxxinn in 3 plain sailing steps
A partnership firm is a business house which is formed by two or more individual who agrees to share there profit and loss of the business. Starting a partnership is a firm is the best choice for small and medium enterprises wherein the individuals decide to contribute to a business and agree upon the share in the profit and losses. The partnership is highly recommendable as it involves less effort in the formation and minimal compliance.
A Partnership firm is a business structure which is in existence from 1932, The partnership Act 1932 is in existence from even before we got the independence of India. But this business structure lost its preference among the young entrepreneurs after the introduction of the Limited liability Partnership Act 2010. The main reason for this was the normal partnership firm has unlimited liability which in the case of LLP the liability is limited and even it is treated as a separate entity.
Partnership firm and the partners are not separate i.e the partnership firm isn't a separate legal entity. So the assets and the liability of the business are owned by the partners. The maximum number of individuals who can form a partnership firm are 10 for banking business and 20 in the case of other businesses. Every partner of the firm can carry out the business on behalf of other partners.
In a partnership firm, the responsibility is shared between the partners. The word partnership itself denotes that individuals come together to a common agreement to do business. The responsibility of the partners can be mentioned in the partnership deed for each and every partner.
A Partnership firm is worked based on the Partnership deed drafted by the partners with mutual understanding. The partners can make a decision on how to run the business with their mutual understanding. Additionally, the Partnership Deed can be changed by the partners whenever it is required or necessary even though partnership deep is registered. There are no limitations with respect to maintaining the business, as long as it comes undersigned arrangement.
At the time of Partnership firm registration itself, the deed contains the pre-defined business goals and activities, which is the primary objective to start the business. A partnership firm can be formed for a particular time period or for a particular project. When the same is finished, the partnership firm is dissolved.
Partners engaged with the firm get different sorts of profits for their capital as well as their individual efforts. The working partner additionally gets salary addition to the interest on capital and portion of the benefit, according to the mutual understanding of the partners.
The cost for registration of LLP is slighter higher than the cost for registration of a partnership firm. LLP registration can be done online through Taxxinn at just Rs.5899. A partnership firm can be registered online through Taxxinn at just Rs.5899.
A Partnership firm is registered under the register of firms that comes under the state government. Whereas LLP is registered under ministry of corporate affairs, which comes under the central government.
The primary advantage of a Limited Liability Partnership over a normal partnership firm is that in an LLP, one partner is not liable for another partner's unfortunate behavior or carelessness. Likewise LLP provides limited liability protection for the partners from the debts of the LLP. However, in contrast to private limited company investors, the partners of an LLP have a right to manage the business directly.
Each and every partner of the partnership firm is personally liable for the losses in the firm. The personal assets of the partner are taken into the task for repaying the debts. This was the reason to introduce LLP
The maximum number of individuals allowed in a partnership firm is restricted to 20 but in the case of LLP, there is no restriction on numb er of partners.
The leadership decides the upliftment of the firm. Combined ownership takes out that feature. In the case of LLP, certain partners are given higher responsibility and power. Those partners are given a position as designated partners
There is no proper structure or regulation for conducting the operation in a partnership firm. It is easy to start and dissolve which leads to distrust among the general public
Aadhar Card
Driving License
Election Id Card
Passport
Electricity Bill
Rent Agreement + NOC
Partnership registration procedure is easy but a professional would be needed to complete the same. In addition, the procedure has been completely changed by the government in order to promote the ease of doing business. TaxxInn is experienced in Partnership registration with an experience of registering more than 800 Partnership and consulting thousands of Partnership throughout India.
Partnership firm is a business form in which 2 or more individuals can join hands to do business.
Partnership firm can be easily & quickly registered in comparision to other form of business.
As comparison to other business form, cost of registering partnership firm is very low.
More Tax Saving as compare to sole proprietor business form.
Individuals having same business goal can form and share risk & rewards.
Least compliance & disclosure required as compare to other business form.
Recommended For Ease of Accommodating Investment Limited Liability Protection Tax Advantages Perpetual Existence Statutory Compliances |
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