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In the Partnership Firm form of doing business in India, two or more persons comes together to do business jointly.
Partnership Firm is formed by entering into written agreement between partners called ‘Partnership Deed’. Partnership deed forms the basis of partnership. It includes all important clauses like name of business, contribution of capital, sharing of profits, mode of management, etc. “Partnership deed is a document containing all the matters according to which mutual rights, duties and liabilities of the partners in the conduct and management of the affairs of the firm are determined.” The deed must be signed by the partners.
Registration of Partnership Firm is optional and is entirely at the discretion of the partners. Registered Partnership Firm enjoys various benefits over the un-registered one. For Example, Only a registered Partnership firm can file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act. Hence, it is always advisable to register the firm with the respective Registrar of Firms. Firm can be registered any time during the life of the Partnership Firm.
Partnership Firms in India are governed by the Indian Partnership Act, 1932.
They jointly own, manage and control their partnership business.
Partners share responsibilities and duties of the business.
Partnerships are guided by terms and conditions of Partnership deed.
Make choice of Partnership Firm Name. Make sure it is not registered trademark of other business enterprise.
Create Partnership Deed with all relevant clauses with our professional help.
Register Partnership Firm with the Registrar of Firms.
Apply for PAN Card & TAN on the name of Partnership Firm.
Opening of Current Bank Account on the basis of PAN Card and Registered Partnership Deed.
Maximum number of shareholders allowed is 200. Hence, Private Limited Company can raise higher
capital from its shareholders.
No mandatory annual returns are specified for Sole Proprietorships as they are required for Companies.
Mandatory statutory audit is required to be conducted by the appointed Statutory Auditor as per the provisions of the Companies Act, 2013.
Mandatory annual returns are required to be filed with Ministry of Corporate Affairs every year within time limit given from the closure of financial year.
It is mandatory to file Income Tax Return of the Company under the Income Tax Act, 1961.
If there are carried forward losses, then it is advisable to file Income Tax Return within the due date specified in the Act.
Further, if the turnover exceeds the specified limit, then Tax Audit may be required to be conducted under provisions of the Income Tax Act, 1961.
If payments are made where Tax is required to be deducted at source, then TDS returns are required to be filed quarterly.
If registrations are taken under State VAT Act, then specified returns are required to be filed as per the frequency as applicable to the business. Under Maharashtra VAT Act, the frequency of filing business returns could be monthly, quarterly or Half-yearly.
In case the Company is providing service and Service tax registration is taken, then Service Tax returns are required to be filed once in six-months. Service Tax payments are required to be done on monthly basis.
We help you in understanding basic structure of Partnership business. We help you in drafting the Partnership Deed by understanding various clauses of the Deed. We help you register the Deed with respective Registrar of Firms. We also help you in obtaining mandatory registrations under various Acts depending on the activity of the business.
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