.jpg){kind=logo}
Where two or more person but not exceeding 20 agrees to do business simultaneously can start a simple partnership firm in accordance with the law governing by Partnership Act 1932 and their Partnership Deed. Though this structure is now not much popular after introduction of Limited Liability Partnership (LLP) because in partnership firm the liability of partners is unlimited and in LLP its limited.
Documents Required
Pan and Aadhar of all partners self signed
Passport size 2 photo of each partner
Proposed name and business nature of firm
Rent agreement copy with electricity bill not older than 3 month's
FAQS
What is a Partnership ?
Partnership is an agreement between two or more people to share the profits of a business. The business can be carried on together by all the partners or any one partner representing the others.Three elements are need to form a partnership:
1.There must two or more persons.
2.The agreement must be to share the profits of the business.
3. All partners together, or anyone, on behalf of the others, must carry on the business.
Is Partnership deed necessary to form as a firm?
It is not compulsory for a partnership deed to be in writing. Partnerships can also be oral.
A person who is not a citizen of India Can be a partner in an Indian firm?
The Partnership Act does not prohibit a non-citizen from joining an Indian partnership firm, subject to necessary clearances and permissions from satisfactory authorities in this regard.
What is the Minimum capital of a partnership firm?
Capital is the initial amount in cash or kind contributed by the partners to start the business. There are no such guidelines on minimum capital by partners. It is not necessary for each partner to contribute equally to the capital. The contribution is based on the agreement between the parties.
Can a minor become a partner in partnership firm?
Partners must be major, should be sane and should not be disqualified by law from entering into a contract. A minor cannot be a partner in Partner ship firm. However as per Section 30 of the Indian Partnership Act, with the consent of all the partners for the time being, he may be admitted to the benefits of partnership by an agreement executed through his guardian with the other partners.
What are the requirements for the registration of a partnership firm?
The following information is essential:
Name of the partnership firm.
Place of business of the firm.
Names of any other places where the firm carries on business.
Date of joining each partner.
Name and permanent address of the partners.
Duration of the firm.
The Deed signed by all partners.
Can a partner transfer his share in the business of the firm to an outsider?
Yes, a partner can transfer his share in the business to an outsider, but only with the consent of all other partners.
Can a partner of a firm become a partner in another firm?
Yes, partners may be partners in another firm in their individual capacity.
Can partners of the firm have to file income tax returns?
Once tax is paid by firm, no tax will be payable by the partners on share of income from the firm. However Interest and/or remuneration etc. received by a partner will be taxed in his hands as Business or Professional Income.
Our Packages