Sonwane Tax Consultant, Infront Of Union Bank Of India, SBI Road, Bahubali Square, seoni
MP, India
Infor@badabusinessmen.com
We reply in 24 hours
966-993-1042
Mon-Fri , 08.AM - 17.pm

Partnership Firm Startup

Partnership Firms

Register a partnership firm through IndiaFilings and get Lawyer support for partnership deed drafting. Partnership firms can be registered by two persons in any State across India.

Partnership Registration need

Partnership firms can be started in India by a group of Indian Citizen. Partnership registration can be unregistered based on a deed or registered with deed through the Registrar of Firms.

Difference between LLP & Partnership

Cost: The cost for registration of LLP is normally higher than the cost for registration of a partnership firm. LLP registration can be completed online through We at just Rs.5899. Partnership registration can be completed online through We at just Rs.5899.

Authority: LLPs are registered in India under the Ministry of Corporate Affairs, Central Government. Partnership firms are registered with the Registrar of Firms, Controlled by the respective State Government in which the firm is registered.

Limited Liability Protection: The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. An LLP also provides limited liability protection for the owners from the debts of the LLP. However, unlike private limited company shareholder, the partners of an LLP have the right to manage the business directly.

Advantages of a Partnership

One of the main advantages of a Partnership Firm is that there are very minimal requirements in terms of compliance. For instance, a Company or LLP requires the annual filing of its financial statements with the Registrar of Companies. Such documents filed with the MCA are also made public documents. On the other hand, registered/unregistered Partnership Firms are not required to file any annual returns, and the financial statements of a partnership firm would NOT be made publicly available. Also, the accounts of a registered / unregistered partnership firm are not required to be audited. Whereas, the accounts of a Limited Liability Partnership (LLP) are required to be audited by a practising Chartered Accountant when the turnover exceeds Rs.40 lakhs per annum or when capital contribution exceeds Rs. 25 lakhs.

Partnership Firm Taxation

Partnership firms may be assessed either as a partnership firm or as an association of persons(AOP). Interest paid to partners, salary, bonus, commission, or remuneration to a partner will be allowed as a deduction paid to a working partner who is an individual. However, when the Partnership Firm is assessed as an AOP, the above deductions cannot be claimed. Therefore, for a partnership firm, it is more advantageous to be assessed as a partnership firm than as an AOP. For a partnership to be assessed as a firm, the partnership should be evidenced by a written partnership deed. Income tax return of a partnership firm is filed in Form ITR-5.

Diadvantages of a Partnership

Partnership firm does not provide its Partners with limited liability protection and does not have perpetual existence. Also, the interest of a Partner in a Partnership firm is not easily transferrable, and the ownership structure does not allow for investment from Angel Investors, Venture Capitalists or Private Equity Firms. Banks / Financial Institutions also prefer to lend to Companies than Partnership Firms as Companies are separate entities and the regulatory requirement for financial reporting of Companies – makes a company more transparent and structured.

Documents Required for Registration of Partnership

The application for registration of Partnership Firm must contain the prescribed registration form for incorporation of a company, identity proof/address proof of Partners, certified a true copy of the Partnership deed entered into and proof of the principal place of business.

As identity and address proof of the Partners, any of the following two documents can be submitted:

  • PAN Card
  • Passport
  • Drivers License
  • Aadhar Card
  • Voters ID

Proof of the principal place of business can be established by submitting the following documents:

  • Sale deed in case one of the Partner owns the place of business
  • Rental agreement copy if the premises are rented
  • Copy of latest electricity bill or water bill or property tax receipt.

Number of Partners

LLPs and Partnership Firms must have a minimum of two partners to be registered. Post incorporation, an LLP can have unlimited partners. In case of a Partnership Firm, if the number of partners at any time reduces below the mandatory minimum of 2 due to death, incapacitation or resignation of a Partner, the partnership firm would stand dissolved. On the other hand, in case of an LLP, if the number of Partners reduces below 2, the sole Partner can still find a new Partner to fill the position without dissolution of the LLP.

Partnership Firms Registration Fee


STANDARD PLANS

All inclusive price.

Rs: 11500/ Only Registrations

  1. Partnership Deed Drafting.
  2. Partnership Pan Card.
  3. GST Registration.
  4. First 5 Month GST Return Filing.

Note:- After Registration Annual Compliance fee Rs: 6000/y up to Rs:25 lakh Turnover.

Buy Now