Learn How to Register Partnership Firm in India. A Partnership firm is one in which there are at least two or more partners who decide to start a business together. The main advantage of forming a partnership firm is that it has less legal compliances as compared to forming a company like Pvt Ltd/ LLP/OPC.
Forming Pvt Ltd Company has high legal compliances in which you need to hire CA for every work and also to hold AGM(Annual General Meeting) within Few days so it is time-consuming and high Cash burning for startups or beginners to those who are just starting.
So starting your partnership firm can be very easy if you follow these guidelines to the end.
Decide a unique name for your business.
Naming your business can take some time for startups but I would suggest you come up with your own word. If you want help you can visit Squadhelp.com or leandomainsearch.com to come up with different words.
Now check the name on google if it is there or not. I would suggest you visit the Intellectual Property Right Website to know about the uniqueness of your firm name.
Once you get your name then there is a little bit of legal Part which you read in the next step.
What are the documents required to form a Partnership Firm?
- Pan card of partners
- Address proof of partners
- Two Passport Size Photograph
- Address Proof of firm
- Partnership Deed
- Affidavit of all partners.
How to Make a Partnership Deed?
Partnership Deed is nothing but a legal agreement between partners which includes all the details like Capital Contribution, Name and address of the firm and all the partner’s details, Date of Starting & Profit and loss sharing ratio, etc.
To download the format of partnership Deed simply search “Partnership deed Format” on google and start making your deed.
Make Sure to Print this Deed on Stamp paper and Make a true copy of it by any advocate out there.
This Makes the article How to Register Partnership Firm complete 50%. Keep Reading.
How to make Affidavit of all partners.
Download the format of affidavit simply by searching on google and download from the government website.
Make sure to print this on legal Paper and do notary of it. (A Legal Formality)
Now the Next step is to open a new Current Bank Account & Apply for a Business Pan card on the government Website.
For Opening Current bank accounts try to open an account in a nationalized bank that is near to your place of business so it will be very easy to commute.
Once You complete all the above process Now it Time to do GST Registration on gst.gov.in website as a normal taxpayer.
This makes the registration of Partnership Firm 80% Complete.
These are the documents which are required for GST Registration-
2.Current Bank Account
3.Nature of Business and address proof
4.Address proofs of partner
And Similarly for Current bank accounts with the addition of partnership deed and affidavit which we have discussed above.
These all processes can be done by yourself or by hiring a CA to make it an Easier process and save your time. But I would suggest you Do it Yourself which will help you in cost-cutting as a startup.
Now the next step is simply to start your business after completing this legal work.
Read this to learn How to start a startup How to start a startup in detail.
Let me give you a costing if you based in India
Partnership Deed– 500rs stamp paper & 50rs for Printing on it.
Affidavit – 100rs stamp each for all partners and doing notary cost around 50rs each.
True Copy of Partnership Deed– 100-150rs Depending on the advocate.
Current Bank Account– No cost or Some bank have Minimum Balance
So the Total Cost goes around – 1.5-2K for this legal Part.
Now Rest legal formality can be Trademark Registration of Your Brand Name which Cost Around 5-10K.
Now you are ready to start your business.
This was the process of how to Register a Partnership Firm in India.
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