Partnership firms in India governed by the Indian Partnership Act, 1932. A Partnership Firm is Owned, managed by an partners. Partnerships firm are comparatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors. Since two or more partners join hands to start a partnership business, it may be possible to pool together more resources as compared to a Sole Partnership. The partners can contribute more capital, more effort and more time for the business. Partnership” is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Persons who have entered into Partnership with one another are called individually, “partners” and collectively “a firm”, and the name under which their business is carried on is called the “firm-name”.
Partnership Registration in India is made easier by ROF department. Earlier process of Partnership registration has been modified. Now the new process is much simpler and with fast track mode. ROF form is used for registration. We have helped number of entrepreneurs for Partnership Firm Registration. In All major cities of India our services are reliable and quick.
|S.No||Income Tax||Tax Rate||Financial Year|
|1.||Income Tax||30%||FY 2020-21|
|2.||Surcharge if total income exceeds Rs. 1 crore||12%||FY 2020-21|
|3.||Health and Education cess||4%||FY 2020-21|
It’s now very easy to start a partnership firm and it can all be done online. Now you can start a partnership firm within few days. What’s more, the cost of incorporating is an allowable expense against corporation tax.
The partners are the owners of the business. Each of them has equal right to participate in the management of the business. In case of any conflict, they can sit together to solve the problem. Since all partners participate in the decision-making process.
A partnership firm is a flexible organization. At any time, the partners can decide to change the size or nature of the business or area of its operation. There is no need to follow any legal procedure. Only the consent of all the partners is sufficient.
There is an agreement among all the partners to share the profits earned and losses incurred in partnership business. Partners mutually decide about Profit loss sharing ratio. Profit from firm is tax free in hands of partners.
For income tax purpose, firm is liable for payment of income tax and share of its partners in partnership firm is not liable to tax. Thus no dividend distribution tax is payable. Provision of ‘deemed dividend’ under income tax law, is not applicable to Partnership firm.
Only two partners are required to start up a partnership firm. There is no need to perform and submit an audit annually. As in case of Private limited or Limited Liability Partnership the Partnerships firm is not required to do fillings at Ministry of Corporate Affairs.
As per Legal Act , Minimum two persons requried for partnership firm
A partners needs to be over 18 years of age and must be a natural person.
We can register a partnership within 7 to 10 days of time. But the documents submitted should be as per our requirements and also within time frame. If there is any delay in submitting the documents the mentioned time frame may change.
Yes, a salaried person can become a Partner, there is no legal bondage on this but you may have to go through with your employment agreement if it contains any restrictions on doing so
To open a current bank account for a Partnership firm, a registered Partnership deed along with identity ,address proof, shop act license and PAN details of the Partners need to be provided.
Yes. In Income Tax return of partnership firm , remuneration and profit paid to partners will be disclosed.
First you need to print deed on stamp paper and then in presence of Lawyer need to do Notarization of Partnership Deed.
Yes. You need to pay appx 1700/- as Government fees for firm registration.
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