A Partnership firm is an association or coming together of two or more person to pursue a common business interest. An agreement called Partnership Deed is made between the partners which serves as a Memorandum of understanding among-st themselves. The partnership deed describes the rights and obligations of the partners inter-se. It is governed by the provisions of Partnership Act, 1932 and its registration with the Registrar of Firms (RoF) is optional. A partnership firm is quick to create and dissolve.
Who can Form?
2 or more major individuals.
NO MINIMUM CAPITAL REQUIRED
- Passport size photographs.
- ID Proof : Adhar Card / Driving License / Voter ID Card / Passport.
- Address Proof : Bank Statement / Electricity Bill/ Telephone Bill.
- Electricity Bill of the proposed Registered Office.
- Legal suit to your existing partnership of for beginners
- Can open Bank accounts and have transactions on the name of the business.
- Optional to get it registered.
- 1,499/- ( All inclusive )
- Stamp duty to be paid is extra. Stamp Duty to be paid is minimum 500/- and can go up to 50,000/- depending on the capital.
- Partnership Deed.
How it works?
Caparison between Partnership, LLP & Company
|Governing Act||Partnership is governed by ‘The Indian Partnership Act, 1932’ and various Rules made there under.||Limited Liability Partnership are governed by ‘The Limited Liability Partnership Act, 2008’ and various Rules made there under.||Companies are governed by ‘Companies Act, 2013’.|
|Registration of Business||Registration with Registrar of Firms is optional.||Registration with Registrar of LLPs required.||Registration with Registrar of Companies required.|
|Funding||Cannot raise capital from VCs and PE firms.||Cannot raise capital from VCs and PE firms.||Can raise capital from VCs and PE firms. Further the Public Limited companies can also raise funds from people.|
|Perpetual Succession||It does not have perpetual succession as this depends upon the will of partners.||It has perpetual succession and partners may come and go.||It has perpetual succession and members may come. and go|
|Number of Members||Minimum 2 and Maximum 20.||Minimum 2 partners and there is no limitation of maximum number of partners.||2 to 200 members in case of Private Company and Minimum 7 members in case of Public Company.|
|Liability of Partners/Members||Unlimited. Partners are severally and jointly liable for actions of other partners and the firm and liability extend to their personal assets.||Limited, to the extent their contribution towards LLP, except in case of intentional fraud or wrongful act of omission or commission by the partner.||Generally limited to the amount required to be paid up on each share.|
|Tax Liability||Income of Partnership is taxed at a Flat rate of 30% plus education cess as applicable.||Income of LLP is taxed at a Flat rate of 30% plus education cess as applicable.||Income of Company is Taxed at a Flat rate of 30% Plus surcharge as applicable.|
|Dissolution||By agreement, mutual consent, insolvency, certain contingencies, and by court order.||Voluntary or by order of National Company Law Tribunal.||Voluntary or by order of National Company Law Tribunal|
Want to start a Partnership business ? Thinking about how to register a Partnership Business online ?
TaxSkill.com offers online partnership Registration at most affordable price by helping you with online Partnership Deed drafting and online Partnership Registration. Let us first understand what is Partnership form of business before you start with online Partnership Registration. Partnership is coming together of Two or more Individuals with a common intention to do business for monetary gains and market share. The individuals coming together are called Partners. the Partners bring in mutually decided share of capital and also agree to share the profits in a manner as decided. A Partnership is created though execution of a Partnership Deed which sets the rights and obligations of each partner . Stamp Duty of appropriate amount has to be paid for such Partnership Deed and such Deed is to be Signed by all the parties to the Agreement. A Partnership can be either registered or unregistered. A Partnership is to be Registered with Registrar of Firms having due Jurisdiction of the area where the office of the Partnership firm is situated. A Partnership business is governed in accordance with the provisions of the Partnership Deed and Indian Partnership Act, 1932 in addition to the other prevalent and applicable acts.
TaxSkill.com offers online Partnership Registration at cheapest price and also on EMI option.