The term is self-explanatory. Partnership firm is a business in which two or maybe more individuals come together with a common goal of managing and operating a business idea. Every activity or decision of each of the partners needs to be carried out as per the terms and conditions laid down in the partnership deed. This structure of the business is not that popular after the coming of Limited Liability Partnership in which the partners are not liable for each other’s actions. As registration is not mandatory in Partnership and needs lesser capital invested, partnership firms do exist still.
Required Documents to set up Partnership Firm
- Form no 1 which is the most important element for the setting up of partnership firm. It is the application form needed under Partnership Act)
- Authentic copy of Partnership deed that has been signed and validated by each of the partners
- A copy of affidavit that clearly mentions the intention of partners to come together
- A copy of rent or lease agreement of the business venue
Once these documents are ready, we take it further from there. In a maximum of 10 days, we send you the required documents and approval for the partnership firm to get a start. Generally in 4 to 5 days, after your request has been received by us. A lawyer will be dedicated to taking care of the processes. In case any further changes are requested, it will take another 4 to 5 days.
There are various advantages of a Partnership Firm. Let us have a look at them.
- Few Compliances to follow: Unlike other business structures, a Partnership Firm demands lesser compliance to follow. Income taxes, sales tax, and other taxes might be levied upon depending on the annual turnover. As there is the freedom to either register or not, there may not be the need to appoint an auditor and or even file for annual accounts.
- Starts easily: As not much of formality is required, with the help of an unregistered partnership deed too, the firm gets a start in 2 to 4 days. No more waiting for ages.
- Less money to start: As the amount needed to start a partnership firm is less when compared to other businesses like LLP, partners can start it easily.