Partnership firm Registration is mandatory for persons who have a partnership deed with a business entity. Le intelligensia provides the best services for partnership firm registration in Bangalore. We examine the requirements of customers and assists to apply the partnership firm.
Partnership Firm Registration In Bangalore
What is Partnership Business?
A business partnership is a specific kind of agreement forms a legal relationship between two or more individuals to carry on a business as co-owners. A partnership is a business with multiple owners, each of whom has invested in the business. Partnerships involve:
- Pooling money toward a common purpose
- Sharing individual skills and resources, and
- Sharing in the ups and downs of profit and loss.
Why to choose a Partnership Firm Registration?
- Two heads are better than one (mostly). Having a great partner can multiply the number of ideas, intelligence, background, and experience.
- You can double your resources and your ability to reach customers.
- Your partner has strengths that you lack and vice versa.
- To share the workload or take responsibility for different parts of the business that can increase your company’s income potential dramatically.
- It promotes greater creativity and can spur innovation.
- It serves as a model for employees and fosters collaboration.
- A partner’s perspective can help you break free of your old way of doing things.
- Partners can help you to take more significant risks.
- Partners also can serve as a restraint in keeping you from risking too much.
Working together for a common goal is a lot more fun than working alone.
Two Types Of Partnership firm Registration:
Indian Partnership Act, 1932 governs partnership firms in India. A Copy of the Partnership Deed should also file with the Registrar of Firms in case, and the firm is registered. The Registration of firm is not compulsory under Part VII of the Indian Partnership Act, 1932, though it has done as registration brings many advantages to the firm.
- No suits to enforce a right arising from a contract shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the firm.
- A partner of an unregistered firm cannot file a suit in any court against the firm, or other partners for the enforcement of any right arising from a contract, or Partnership Act confers rights.
- An unregistered firm or any of its partners cannot claim a set off (i.e. mutual adjustment of debts owned by the disputant parties to one another) or other proceedings in a dispute with a third party.
Hence, it is always advisable to get itself registered sooner or later.
- Choose a Name for the Business
- Check the availability
- Register the Firm
- Be registered for tax
- Create a Partnership Agreement
Advantages of Partnership Firm Registration
- Easy Formation
- More capital available
- Combined Talent, Judgement, and Skill
- Tax Advantage
- Unlimited Liability
- Diffusion of Risk
- Divided Authority
Characteristics of Partnership firm Registration
- Two or more persons: There must be at least two persons to start a partnership firm.
The existence of an agreement – Partnership is the outcome of an agreement between persons.
- Agency relationship (Mutual agency & Mutual Confidence).
- Nature of liability – Unlimited.
- Utmost good faith.
- Profit motive – The more sales you generate, the more profit you make. This profit distributes among the partners according to the agreed proportion.
- Conduct of Business-Management By Law.
- Fusion of ownership and control.
- Restriction on transfer of interest.
How to register a partnership firm?
- Partnership Deed
- Documents of Firm – PAN card of firm & Address Proof of firm (If the registered office place rents, rental agreement and one utility bill (electricity bill, water bill, property tax bill, gas receipt etc.) have to be submitted. Also, submit NOC from the landlord.)
- Documents of Partners – PAN card of partners & Address proof of partners.
- Additional Documents in case of Registration – Affidavit certifying that all the details mentioned in deed and documents are correct.
- GST Registration
- Current Bank Account
Is mandatory to register a firm with income tax?
It is compulsory to apply for registration with the Income Tax Department for all firms. PAN Card is also required to begin a current account in the name of the partnership firm.
Hence, Do you want assistance for partnership registration in Bangalore? Please Contact: 9108569562
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