Start your Partnership Firm
registration starts @ Rs. 1999 (all inclusive)
Partnership could be registered or unregistered. Partnerships are ideal for small business in the unorganised sector having multiple promoters.
A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors. With the introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership.
There are two types of Partnership firms, registered and un-registered Partnership firm. It is not compulsory to register a Partnership firm; however, it is advisable to register a Partnership firm due to the added advantages. Partnership firms are created by drafting a Partnership deed amongst the Partners and IndiaFilings can help start a registered or un-registered Partnership firm in India.
Why register a Partnership firm?
No Minimum Capital
No minimum capital is required for Partnership Firm Formation. No minimum capital contribution requirement. It can be registered even with Rs. 1000 as total capital contribution.
On account of its very nature, Partnership firm enables sharing of risks by more than 1 person. This ensures diversified financial risks.
Easy To Form
Partnership Firm is very easy to form. It comes into existence merely by a Partnership Deed. Its registration is not mandatory. Even after formation, there are no annual filings to be done except Income tax returns.
Better Tax Planning
Partnership firm is a legal tool for better tax planning. The firm is a separate entity can offer remuneration and interest to working partners Remuneration to partners.
EMI option Available
Is audit required for a Partnership firm?
It is not necessary for Partnerships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion.
How to open a bank account for a Partnership firm?
To open a bank account for a Partnership firm, a registered Partnership deed along with identity and address proof of the Partners need to be provided.
How many people are required to start a Partnership firm?
A minimum of two Persons is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.
What are the requirements to be a Partner in a Partnership firm?
The Partner must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India.
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