Overview
In Partnership, at least 2 person enter into a agreement to carry business so as to share benefits earned and will be personally liable for the losses, if any, incurred. All decisions are duly taken with common assent of the Partners. The Partnership is administered by the Partnership Act, 1932 and registration of thee partnership firm is at the sole discretion of the partner of the firm and registration of the same is optional as per the provision of the Partnership Act, 1932. Therefore, Partnership is an agreement between 2 or more than 2 partners to carry a business. A Partnership Deed plays fundamental role in any partnership firm which lays down the basics for operating the firm. • Partnership firm does not have distinct identity from its partners. • Partners are liable for business / work performed under Partnership. • Foreign National cannot become partner. • Audit is applicable in case turnover is one more One Crore
Minimum Requirement
• Registration of Partnership firm is optional. Though it is always advisable to get the same registered under Indian Partnership Act, 1932.
• Registration under Indian Partnership Act, 1932 normally takes 4-5 days.
• There is no such requirement of minimum capital to register a partnership firm.
Features
• There should to be in any event 2 people to form the Partnership Firm
• Every partner act as an agent of another partner
• Business of Partnership firm can be carried on by all the accomplices or any of them representing all
• Every Partner contributes his capital in the concurred proportionSince OPC is managed by only one person liberty is provided by MCA to prepare abridged Board Report by The Companies (Accounts) Amendment Rules, 2018.
• Liability of each accomplice is boundless
• Partnership Firm can be enrolled firm or un-enrolled firm under the Partnership Act, 1932
What is included in this
1. Document Preparation;
2. Draft of Partnership Deed;
3. Partnership Firm Registration;
4. Regular updates;
5. 24*7 mail support.
FAQ
1. What is the format of partnership agreement?
There is no specific format of partnership agreement, it is drafted as per the requirements of the partner.
2. Is it mandatory to conduct audit of accounts?
Audit of accounts are optional under Indian Partnership Act, 1932 it is optional
3. When tax audit is applicable on Partnership Firm?
Tax audit is applicable in case turnover is one more One Crore
4. How many partners are required to start a partnership firm?
Minimum 2 partners and Maximum No Limit
5. What is difference between a Partnership Firm and a LLP?
| Particular | Limited Liability Partnership | Partnership Firm |
| Registration | LLP comes into existence only after registration | It is not necessary to register a partnership firm. Partners may or may not register their Firm |
| Act | LLP is governed by LLP Act, 2008 | Partnership Firm is governed by Partnership Act, 1932 |
| Perpetual Succession | It enjoys perpetual succession | Does not have perpetual succession |
| Status | Separate Legal Entity | No Separate Legal Entity |
| Designated Partner | Minimum two designated partners required | No concept of Designated Partner |
| Residency | One partner must be resident in India | No such requirement |
| Public interface | Documents can be available after payment of certain fees to the Ministry of corporate affairs | No such facility for partnership firm |
| Compliance | Various compliances are required including annual return, filing statement of asset and liability etc. | Comparatively less compliance |