As the name suggests, Partnership is the amalgamation of two or more people to form an organization in a way to achieve similar goals. Partnership Firm is formed when two or more people come together to form an entity with a common goal and interest of doing business together and earning profit. When people share the same ideas to do business in the same field they prefer to merge their fund and asset together to form a Partnership in order to have more means and ease of doing business. Registration of partnership firm is done under the Indian Partnership Act, 1932 . The partnership firm is one of the common types of businesses found in India, partnership is done on a consensual basis and all the rules and regulations are mutually decided by the partners together. Section 4 of Indian Partnership Act defines partnership as “the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”. The share of profits, losses, capital, assets etc all are mutually decided by the partners and are written in the partnership deed for legalities, which is duly signed by all the partners. Registration of partnership firm is very crucial for future growth and smooth functioning of business in order to look after any legality disputes.
This is all we need from you for the registration process of your partnership firm online.
There are categories into which partnership firm is divided, depending on the type, nature and characteristics of partnership the partners want to form, there are many categories in which partnership firms are classified, some of them are:
when there is no agreement formed between the partners then according to the laws under India Partnership Act, 1932; liabilities of each partner is subjected to unlimited.
when some or any of the partner has limited liability only to the extent of his capital contributed in the business, it is known as Limited Partnership.
when the partners form partnership at will, then there’s no restriction on dissolving the partnership.The Partnership Firm can be dissolved according to the will of the partner.
when a partnership is formed for achieving a particular objective, then it is known as Particular Partnership. Completion of the desired objectives will automatically result in the end of partnership.
The Limited Liability Partnership popularly known as LLP is a form of partnership which has a separate legal entity and is governed by Limited Liability Partnership Act, 2008. In LLP all the partners possess limited liabilities.
As a partnership firm, there are also different categories in which partners are divided in accordance with their roles and responsibilities. Types of Partners
also known as Active Partner is the most general form of partner in a Partnership firm.the managing partner is the one who brings capital and also manages the business activities actively. He looks out at the day to day activities and takes responsibility for controlling the business.
commonly known as Sleeping partner, is a partner who has the financial means but does not want to carry out the managing and business activities, so he brings out the capital and contributes it to the firm but does not participate in any activities. His share in profit or losses will be mutually decided between the partners. A sleeping partner is also called financial partners
when a partner does not take part in any business activity nor contributes anything to the capital but nominally allows the Partnership Firm to use his name then he will be known as Nominal Partner
When a partner is actually not a partner of the firm legally but holds out himself in front of others as a partner, he will be known as a partner by holding out.
When a legal and general partner of a firm keeps his existence as a partner in secret and does not allow the public to know about his partnership then he’ll be known as Secret Partner
When the liability of a partner is limited and only to the extent of his capital then he’ll be known as limited partner. In India Limited Partner is not permitted so either LLP is formed or this kind of partnership is seen in foreign countries.
When a partner only shares the profit of business then he’s known as partner in profit only. This case arises generally when the whole capital is invested by one partner only so he wishes to be a part of profits only
In many firms when the business needs fame and standing in the society they can collaborate with such partners who are willingly and knowingly allow the Partnership firm to use their name and fame for business purposes. That partner will be known as Partner by Estoppel
When a partner divides his share of profit in the firm with someone else, he’s known as a sub-partner
: In certain circumstances for instance- death of a major partner and in his place his minor child is taken as a partner then he’ll be known as Minor Partner. According to the Indian Partnership Act, 1932 a minor cannot be admitted as a partner in legal terms as partnership agreement with minor is void ab initio but with the consent of all partners he can enjoy the benefits of partnership. A minor can only be a legal partner when he achieved the age of majority i.e, 18
We at lawgicalindia assist you with each and every step of registration of your partnership firm
Partnership firm registration process requires legal knowledge of laws thus it’s always better to have someone assist you with formalities.
To ensure a hassle free Partnership firm registration online, give us a call. Steps for Partnership Firm Registration Process:
A unique and attractive name for your partnership firm will give you a leverage of attracting more customers. The name of the firm should not match with any other firm's name to avoid legal issues in future and should not be offensive to law
Partnership Deed is the most important document for a Partnership Firm. A partnership deed consists of all the information regarding the partners and the firm; name and address of the partners and firm , each partner’s share in profit or loss, capital, assets, responsibility and so on. A Partnership Deed is prepared on a stamp paper and is notarized by the registrar, a well formed partnership deed is crucial to avoid future confusion and conflicts between the partners
For the conduction of business of a Partnership firm it is mandatory to have a pan card in the name of the firm, after the formation of Partnership deed, one can apply for a pan card with the necessary documents required. The pan card application can be filled online and sent with the necessary documents to the main office of NSDL. After the verification of documents, Pan card will be allotted in the name of the firm
When the pan card is successfully allotted then a current account with the necessary documents (partnership deed, pan card of firm and partners, aadhar card of partners etc.) in the name of the firm will be opened. It is mandatory to have a current account of the firm for all the transactions related to business, the bank account plays a major role in the taxation process therefore, it is necessary to maintain the account transactions carefully
GST registration is mandatory for conducting business for taxation purposes. After completion of necessary basic details, one must apply for GST as soon as possible because without it further process cannot be done.
You can get your partnership firm registration online, although registration of partnership firm under the Partnership Act, 1932 is not mandatory but it is advisable to get your firm registered. As only a registered firm can file legal cases against disputes in the court of law and will have legal protection. For partnership firm registration online, you can give us a call and we will do your whole registration process online without even bothering you of any legal issues and problems
|BASIS||PARTNERSHIP FIRM||LIMITED LIABILITY PARTNERSHIP FIRM|
|Prevailing Law||The partnership firm is guided by THE INDIAN PARTNERSHIP ACT,1932||The limited liability partnership firm is guided by the LIMITED LIABILITY PARTNERSHIP ACT, 2008|
|Registration||The registration of partnership firm under the partnership act 1932 is not mandatory||The registration of LLP is mandatory under the LIMITED LIABILITY PARTNERSHIP ACT, 2008|
|Entity||Under the partnership act, 1932, the partnership firm has no separate legal entity||The LLP act states that every firm under LLP act 2008 has a separate legal entity|
|Perpetual succession||Any case of death or departure of a partner will result in dissolving the current partnership||Partners may come and go, it won’t affect the LLP|
|Legal Standing||Has legal status only in case of registered partnership firm||Has legal status due to mandatory registration|
|Liability of partners||unlimited liability in general cases||Limited Liability of partners|
|Number of members||Minimum - 2, Maximum- 20||Minimum - 2, Maximum- unlimited|
Few doubts important to be resolved quickly
Few doubts important to be resolved quickly
No, it’s not necessary if you have all the documents required in check and available, then we can easily register your partnership firm online
Although it’s not mandatory to register your firm under partnership act, 1932 but it is advisable because with it your firm won’t have any legal entity thus you cannot file any suit in the court, and won’t be able to solve any disputes legally
The minimum numbers of partners are 2 and maximum are 20.
A partnership deed is a contract between the partners formed mutually in which all the details regarding the firm and partners are mentioned. It also consists of the dividation of profit and losses, capital, investment etc. therefore, it is one of the important documents for partnership firm registration. Without Partnership deed there’s no existence of any partnership firm
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