Firm Registration
A Partnership firm is one of the important types of a business organization. A partnership firm is where two or more persons come together to incorporate a business and distribute the profits in an agreed ratio.
About Partnership Firm
Section 4 of the Indian Partnership Act, 1932, defines the term ‘partnership’. According to this, “Partnership is the deed 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 registered into partnership with one another are individually called “partners” and collectively called “a firm’’, and the name under which their business is carried on is called the “firm name’’.
Benefits Of Registration
Ease in Formation
A partnership is very simple to form. All that is required is an deed among the partners. Even the expenses to be incurred for registration are- not match.
Pooling of Financial Resources
A partnership dictates more financial resources equivalent to sole proprietorship. This helps in the growth of the business and also in earning of profits as envisioned. The firm can admit more partners as in the case of monetary requirement.
Pooling of managerial stalls
A partnership helps in pooling of managerial skills of all its partners. This will lead to greater effectiveness in business operations. For instance, in a large partnership firm, one partner can control production function, another partner can look for all marketing activity, still another can attend to legal and personnel problems, and so on.
No Annual Returns
Rational business decisions-In a partnership firm, decisions are taken unanimously after considering all the major aspects of a problem. This ensures not only balanced business decisions but also removes difficulties in the smooth implementation of those decisions.
Higher Contribution of Capital
Higher Contribution of Capital-A partnership firm can increase the higher contribution of capital because of its huge number of partners.
No Statuary Audit
One of the suggestive advantages of a Partnership firm is, there is no need of Statuary Audit. Therefore, a Partnership Firm is not required to get its books of account audited. You may have to figure out your book of mind if there is any requirement of Income Tax Act. Sometimes it is needed by the Income Tax Department
DOCUMENTS REQUIRED FOR PARTNERSHIP REGISTRATION
IDENTITY PROOF
- Passport
- Driving License
- Voter ID
- Aadhaar Card
- Passport Size Photograph
ADDRESS PROOF
- Electricity Bill
- Mobile Bill
- Voter ID
- Passport
- Aadhaar Card
REGISTERED OFFICE PROOF
- Electricity Bill
- NOC Letter
- Rent Agreement