A partnership is an arrangement between two or more parties having mutual interests and start the business together. Persons forming part of a partnership are known as partners. A Partner can be an Individual, Business Concern, Company or any organizations. Partnership deed is mandatory before entering into the partnership. Partnership deed includes the following details:
the names of partners with agreed shares, duties, and salaries to working partners
capital investment ratio
details of the business
terms of joining or retirement of new and old partners
the conduct of business
circumstances under where the firm could be dissolved
further proceedings in death of a partner
After going with all above details partnership deed should be signed by all the partners and the same should be registered under Partnership Act. Indian Partnership Act 1932 extends to the whole of India except the State of Jammu and Kashmir. Family concerns like businesses carried by HUF are different from the business under partnership act.
Partners have to carry on the business of the firm for the common benefit of all the partners.
Each partner will assure the firm for any loss caused to it by his fraud while conducting the business.
If there are no terms of an agreement between profit and loss sharing ratio between partners the losses or profits will be shared by the partners equally.
Partners have no right to demand excess remuneration for taking the active part in the conduct of the business of the partnership.
Interest on capital provided by each partner shall be payable only out of profits.
Partners acts as agents of the firm and also the partner is also liable jointly and individually with partners for all acts of the firm done
He can’t escape from the liability after his retirement for the acts done during his tenure of partnership.
A partnership firm can be register either at the time of formation of firm or in sequence, for registration partners must file an application to the registrar of firms along with the following requirements. The name of the firm should be unique from other existing firms, and name should not contain conflicting words. Written partnership deed must be registered, partnership deed illustrates the following details:
Partners and firm names and addresses.
Business Commencement date.
Period of partnership
Each partner’s contribution.
Profit or loss sharing ratio.
Interest on loan and capital.
Salaries, commission, remuneration to partners.
Details of Accounts & Audit.
Duties, powers & Responsibilities of partners.
Arrangements regarding Admission, death or Retirement of partners.
An application is made to the registrar of firms as following:
Application in Form No 1 and duly signed by all partners.
Specimen Affidavit duly filled.
Original and certified copy of partnership deed.
Lease Agreement. (Ownership Proof).
However, registration of partnership deed is different from registration under Income Tax department. It is compulsory for all firms to register under Income Tax department for the purpose of PAN card.
Our Company registration team members are skillful in registering partnership firms, so this helps you to get to your destination without any hassle. So we request you to inquire all the possible outcomes of partnership, then proceed further to establish a firm under partnership. This leads you to have a bright future of all your partners. we also offer other wide range of services like proprietorship, public and private limited company, one person company, and partnership registration services
LET'S MEET HERE
StartBiz Private Limited #202 Mah Manor Complex, Before Hotel Crystal Banjara, On Masab Tank to BanjaraHills Road- (Beginning) Hyderabad-500028