With regard to Partnership firm we provide the following Services
Let us discuss the Partnership firm in brief in the form of FAQ’s
What is Partnership Firm?
A partnership firm is governed by the provisions of the Indian Partnership Act 1932. Section 4 of The Partnership Act, 1932, defines “Partnership" as 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.
Therefore, a Partnership is a relation between two or more persons who join hands to form a business organisation to earn a profit. The persons who join hands are individually known as ‘Partner’ and collectively a ‘Firm’. The name under which the business is carried on is called ‘firm name’. ABC & Co, Ramkrishna & Co, etc are the names of partnership firms
About Registration of Partnership Firm
To form a Partnership firm minimum two persons are required and unlike Company or LLP, Partnership firm doesn’t have a separate legal entity. The Partnership firm can be registered or unregistered and the option is left to the partners. However, it is advisable to register a firm under Partnership Act 1932, to avail legal benefits and benefit of safeguards provided in the Partnership Act 1932. A firm can be registered registrar of firms of the respective jurisdiction.
What are the Documents required for forming and Registering a partnership firm?
What is the information required to draft a Partnership Deed?
‘Partnership Deed’ is a document that lays down terms and conditions for starting and running the partnership firm. This agreement can be oral or written. However, it is always advisable to insist on a written agreement among partners in order to avoid future controversies. Following information’s are required to draft a ‘Partnership Deed’
What are the Other Registrations or Licenses Firm should obtain after formation/registration?
|Sl. No||Type of Registration||Requirement/Applicability|
|1||Karnataka Shops and Establishment Registration||Every Shop or Establishment carrying trade, business or services within the notified areas of State of Karnataka, shall compulsorily, within 30 days from Commencement of the business register under “The Karnataka Shops and Commercial Establishments Act, 1961” and Obtain Registration Certificate|
|2||GST Registration||Subject to Specific Provision depending on the nature of the business activity under the “GST Act 2017” GST Registration can be obtained Voluntarily or after crossing the Threshold limit prescribed. However, it is pertinent to note that, the categories prescribed in Section 24 of the CGST Act 2017 is are required to be mandatorily registered.|
|3||Karnataka Professional Tax Registration||
[A] PT Employer Registration - Certificate of Enrollment (EC) is required to be obtained from the Profession Tax Officer within Thirty days from the date of commencement business. This registration is mandatory for business entity whether they employ any people in or not
[B] PT Employee Registration - Certificate of Registration (RC): If entity employees any employee whose salary is Rs.15000 or more, within thirty days of his becoming liable to pay tax, it should Obtain “PT Employee Registration -Certificate of Registration (RC)
|4||Import Export Code (IEC)||If entity carries Import or Export Activity, IEC Code is mandatory. Further to avail export promotion benefits like MEIS, SEIS, etc. IEC Code is mandatory|
|5||Udyog Aadhaar||If business entity wants to avail the benefits available to MSMED being Manufacturer or Service provider, then it Can Obtain MSME Registration/ Udyog Aadhaar.|
|6||Tax Deduction Account Number (PAN)||Compulsory|
|7||Permanent Account Number||Compulsory|
|8||Other Registration||Other Registration may be applicable depending on the nature of Business activity or types of products or Services dealt by the Proprietorship, that is not addressed above.|