How to start a Partnership Firm?

How to start a Partnership Firm

A partnership firm is a type of business formed by two or more persons who agree to share their business profits and losses in a Specified ratio, regardless of the circumstances. A minimum of two persons are required to establish a partnership firm.

The Indian Partnership Act was passed in 1932, demonstrating that partnership enterprises can register themselves to access some benefits as being optional.The Indian Partnership Act, 1932 governs and regulates partnership firms in India.

Table of Content

What is a Partnership Firm?
Procedure to start a Partnership firm.
Documents required in the process of registering the Partnership Firm.
Conclusion.
FAQs.

What is a Partnership Firm?

Partnership Firm is a popular form of business structure in India.A partnership firm is one of the most important forms of a business organization. A minimum of two persons are required to establish a partnership firm.A partnership firm is where two or more persons come together to establish a business and divide its profits amongst themselves in the agreed ratio.

Procedure of how to start a Partnership Firm

The procedure of how to start a Partnership Firm can be understood by the following steps;

Step-1: Selecting a name for the Partnership Firm

Select a name for your Partnership Firm. Remember that it should be unique yet simple and should not collide with any of the other firms presented in the domain.

Step-2: Finalizing the Partnership Deed

A Legal contract consisting of all the legal terms and conditions on how to operate the firm referred to as Partnership Deed.It is based on the mutual interests and understanding of the partners aiming for the same.

Step-3: Applying for a PAN card

A PAN card is a Permanent Account Number that should be applied on the name of the firm as It is important to fulfill the obligation of Tax to the Income Tax Department.

Step-4: Application for Partnership Registration

You need to fill an application Form 1 for Partnership Registration with all the necessary details like Name and address of the Firm,details of the Partners,Commencement date of the Firm.

Step-5: Submitting the Documents

The most Important step is to submit all the necessary documents to the ROF (Registrar of Firms) for further procedure. The documents must be truthful with all the details that should be completed.

Step-6: Receiving the Partnership Registration Certificate.

After Completing the submission of documents.The ROF (Registrar of Firms) will analyze your documents thoroughly and get satisfied with the procedure and documents,a Certificate would be provided for Registering your Partnership Firm.

Documents required in the process of registering the Partnership Firm

The following are the Important Documents required in the process of registering the Partnership Firm:

Certified original copy of Partnership Deed.
Affidavit certifying all the details/NOC.
House tax receipt.
Voter ID.
Passport.
PAN Card and address proof of the partners.
GST registration.
Ownership Proof of the primary place of the firm.
Registered document of the Property.

Conclusion

Starting a Partnership Firm is a generous Idea as it is easy to start,requires a standard Investment from each of the Partners,Involves division of creativity,improves credibility and receives diversity of Management.

You can contact Professional Utilities @ ₹11,999 for a better understanding on How to start a Partnership Firm in an easy and effective way.

Why Professional Utilities?

At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.