Partnership firm is a business wherein two or more people share ownership and each contributes financial resources, property and labor. It is easy to form and preferred by small and medium business. and skills, as well as share the profit and losses of the business. Partnership comes into existence by an agreement between two or more persons called partners. Registration of partnership arises because it safeguards the legitimate rights and obligations of parties in case of disputes and disagreements. The Indian Partnership Act, 1932, Section 4, defined partnership as “the relation between persons who have agreed to share the profits of business carried on by all or any of them acting for all”.
Features of Partnership Firm:
- Unlimited liability.
- Simple and inexpensive to form.
- Flexibility in operations.
- Lack of harmony.
- Sharing of risks.
- Limited capital.
Process of Partnership Firm Registration:
A simple procedure is followed for getting a firm registered.
- Draft partnership
- Obtain stamp paper in the name of firm.
- Apply for the PAN number and open a current bank account.
- Issuance of registration
- Apply for registration through FORM-1 with Deed and other documents.
- Apply for other license as required.
Documents Required for Registration:
- Name of the firm.
- ID proof of all partners (Aadhar card, Election voter card, PAN card, passport).
- Latest two passport size photos (of all partners).
- Business place ownership proof as latest utility bill (Electricity bill, Telephone bill).
- Detailed description about objective of firm.
- Address proof of all partners (Bank statements, Telephone bill, Electricity bill, etc.)
- Rent agreement and NOC/Sale Deed.
Although it is not mandatory to register partnership firm but it is always advisable to get register your firm for taking benefits which are available to registered firm. Vincyte provide the live chat options for the customers who find difficulties can chat live and find solutions. To obtain more information about Excise Registration Online visit vincyte.com.