Partnership Firm

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WHAT IS PARTNERSHIP FIRM?

Partnership is an association of two or more persons to carry on a business in the capacity of co-owners. Each such person is called a partner. All the partners share the profits and losses in proportion of their respective ownership, or as agreed between them.
The amount of money that can be committed by a partnership firm is much larger. This is possible because each partner can bring in a part of the total amount of capital required rather than only one person arranging the money. There are more people to take care of different functions of the business (such as Marketing, Finance, Production, etc.). Thus business can be managed better. However, decision making is collective. There is a need to involve and convince other partners before any decision can be taken.
A partnership can be formed either orally or in writing. There is a limit on the number of partners who can start an enterprise together.

BENEFITS OF A PARTNERSHIP FIRM

Easy Formation

Registration is not compulsory in the case of Partnership firm. It can be formed without any legal formality and expenses. Thus they are simple and economical to form and operate.

Larger Resources

Due the more number of members the partnership firm has larger resources for the business operations as compared to sole proprietorship.

Flexibility in operation

Due to the limited number of partners there is flexibility in the operations of business as the partners can amend any objectives or change any operations any time by mutual consent.

Better Management

Business of a partnership firm is very well managed by all the partners as they take interest in the daily affairs of business because of the ownership, profit and control.

Sharing of Risk

In partnership every partner bears the risks individually as it is easier compared to sole proprietorship.

DOCUMENTS REQUIRED FOR REGISTRATION OF PARTNERSHIP FIRM

1). Partnership Deed
In spite of the fact that an association deed or Partnership Deed can be oral, for the most part, a partnership deed is composed to stay away from any future clash. Partnership deed is made on a legal stamp paper of Rs. 2,000/ – and must be marked by every one of the partners. It contains rights and obligations of the firm and the accomplices.
2). Documents of Partners
a). PAN card of partners – As an identity proof, all The partners of a Partnership firm is required to submit Pan Card.
b). Address proof of partners – Aadhar Card, Driving License, passport or Voter ID card can be submitted by the Partners as address proof for Partnership Registration.
3). Address Proof of firm
On the off chance that the enlisted office put is leased, rent agreement and one utility bill (electricity bill, water bill, property tax bill, gas receipt etc.) must be submitted. Additionally, NOC from landowner will be submitted. If the enrolled office put is possessed, service charge must be submitted specifying the name of the proprietor. Likewise, a NOC from the (proprietor as said in service charge) must be submitted.
4). Additional partnership firm registration documents required
In the event that accomplices wish to enroll the association firm, they have to submit organization deed, ID and address confirmations of the firm and also the accomplices to the Registrar of Partnerships. With it, a sworn statement is likewise required to be submitted affirming that every one of the points of interest specified indeed and reports is right.
5). GST Registration
For acquiring a GST Registration Process, a firm needs to submit PAN number, address confirmation and personality and address evidence of an accomplice. Approved signatory will sign the application either utilizing a computerized signature testament or E-Aadhar confirmation.