When we talk about the forms a business organization can take, one of the most prominent ones is a partnership. In India particularly it is a very popular entity to carry out business.
A Partnership firm is a business entity created by persons who have agreed to share profits or loss of the business. Partnership is a very good choice of business entity for small enterprises wherein two or more persons decide to contribute to a business and share the profits or losses.
Partnership Firm in India are established and governed under the provisions of Indian Partnership Act 1932 (referred as “Act”). Partnership Firm in India may be registered or may be non-registered. It is not compulsory to register under the Indian Partnership Act, 1932. The benefits for registering Partnership Firm as prescribed under section 69 of the Indian Partnership Act, 1932. The Registered firms are more reliable as compared to non-registered firms.
Partnership deed is an agreement between the partners of a firm that outlines the terms and conditions of partnership among the partners. It specifies the various terms such as profit/loss sharing, salary, interest on capital, drawings, admission of a new partner, etc. in order to bring clarity to the partners
This deed is required by all types of firm whether registered or unregistered.
A partnership firm can be registered under Section 58 of the Indian Partnership Act at any time, even subsequent to the formation. The registration of a partnership firm is done through the Registrar of Firm in which the partnership firm is situated. When the Registrar of Firms is satisfied that the provisions of Section 58 are complied with, a record of entry of the statement is made in the Register of Firms and Certificate of Registration is issued.
The following key registration which partnership firm concern should obtain at the time of start of business:-
The partnership firm will have to file income tax return with income tax department. Also quarterly TDS return needs to be filled if TDS has been deducted on specified payment
The partnership firm will have to file GST returns with GST department on monthly.
It is not necessary for partnership firm to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criteria
We will help you to draft partnership deed, register the firm, obtains key registration and also to comply with various legal requirement.