A Partnership Firm is a popular form of business constitution for businesses that are owned, managed, and controlled by a Partnership of People for profit.
Partnerships firms are relatively easy to start are is prevalent amongst small and medium-sized businesses in the unorganized sectors.
Registering a partnership firm in India is a very simple and recognized business model in India. Many E-commerce businesses in India are running on this model only.
For getting a payment gateway or to get online payment it is very important to have the company registered in India.
For starting a partnership firm one must require to have a group of people and file a partnership deed registration form.
Features of registering the partnership firm in India.
- 2 persons are required as Partners.
- Partners share responsibilities and duties of the business.
- More capital can be brought into the business.
- You can even work at some other place.
- Company can be started even at low budget.
Partnership company registration in India is the best option for the online business before going to the LLP model. As it is very easy to set up, we are here to discuss that how to register a Partnership Firm in India.
If you are having a low budget and fewer members then setting up a partnership business is the best option.
If you are having a huge capital and more than two partners then you can register a firm in India as LLP (limited liability Partnership Company) or Pvt Ltd.
To know more: How to register a LLP in India. or How to register a Pvt Ltd Company in India.
After reading and following this guide, you will know the complete steps of where and how to register a partnership firm in India. So let’s start with knowing the complete process and procedure of registering a partnership firm in India.
Partnership firm Process and Procedure
Partnership firms are classified into two:
- Registered Partnership Firm
- Unregistered Partnership Firm.
Let us discuss the procedure to register a partnership firm in India. The legal process to register a partnership firm in India will take a long time to get it done. But if you know all the steps and know from where to register partnership firm or legal process to register partnership firm then it will be easy for you to get it soon:
The stepwise Registration process of Partnership Deed for an E-commerce company:
A partnership firm requires at least 2 members to operate or to be eligible for registration for online business.
STEP 1: Get the name for registering the partnership firm. The name must be unique in nature and does not show any resemblance with the existing companies of India. If done so, then your application will be rejected. So choose the name of the company that must not hurt the emotions or feelings of any group or common people otherwise they can sue you.
STEP 2: Partnership deed registration a mandatory step in the registration process of the partnership firm. A partnership deed is a straightforward understanding between the partners where partners said the terms and conditions about the organization.
In the terms and conditions like partnership benefit and sharing proportion or some other particular term. The organization’s understanding is drafted by the lawful counsel and it’s ought to be in composed on stamp paper and it’s legally approved additionally from the public accountant.
STEP 3: Apply for the pan card in the name of the company; it is the mandatory step because the tax is to be paid by the company only. Like sole proprietorship registration, the tax is payable by the owner itself but in this case, there are so many owners so pan card is built in the name of the company.
STEP 4: Open a bank account in the name of the partnership firm, it’s a simple procedure to open a current bank account for the firm. So essentially take the documents required for opening a current account.
- PAN Acknowledgement/PAN Card in the name of the Firm.
- Passport size photographs, self-attested Identity proofs and residence proofs of each signatory.
- Self certified copy of the partnership deed, rent deed along with proof of address in the name of owner of the rented property.
STEP 5: Register a partnership deed in India, after getting the current bank account register a partnership deed so that no one can in the partnership has the right to arise any objections in the future. And any partner or third party cannot sue the company in case of a dispute.
Documents required for partnership firm registration
Following legal documents are required for partnership firm registration:
- Partners identity proofs like PAN Card of the Partners or Adhar Card of the Partners or Voter ID Card, Driving License, Passport Size Photographs
- Documents Related to address proof:-
a) Any Utility Bills.
b) Ownership Proof.
- Company related information:-
- Name and address of the firm.
- Detailed Business Activities.
- Capital contribution by each partner.
- Profit sharing ratio among the partners.
- Routine Rights, responsibilities of each partner.
Partnership Deed: – the deed is prepared accordingly to the proper format and all the terms are defined. It’s on stamp paper as per the Indian stamp act and sign by all the owners and witness.
How much does it cost to register a partnership firm
The fee for the registration of a partnership firm varies according to the number oif members in the company and according to the deed is made. But usually, it is around 5000 INR cost to register a partnership firm in India.
How to Register a Partnership Firm in India
The partnership firm can be registered from anywhere in India to the registrar of the company, As now there is a facility of online registration of partnership firm, so it becomes very easy to register your company as a partnership firm. I suggest Legalregistrar, which provides the best legal services in India.
Now I hope you like the information provided in this guide, how to register a Partnership Firm in India, and if you really like this guide, You can support us by sharing this article on social platforms.
Now you have the opportunity to start an online business without being registered, it is very simple as to get the money in your savings account.
To know more: How to start ecommerce business without registration.