What is Partnership Firm?
Partnership Firm is one of the most important forms of a business organization, where two or more people come together to form a business and divide the profits thereof in an agreed ratio. A Partnership is easy to form, and the compliance is minimal as compared to companies. Partnership registration is not compulsory and in at the discretion of the partners whether they want to register partnership firm or not. But a partnership firm cannot avail legal benefits if it is not registered, hence it is always advisable to register it.
1. Partnership Deed
Although Partnership deed can be oral, generally a partnership deed is written to avoid any future conflict. Partnership deed is created on a judicial stamp paper and has to be signed by all the partners. It contains rights and duties of the firm and the partners.
- Documents of Partners
- PAN card of partners
- Address proof of partners (Aadhar Card/Voter ID/Driving Licence)
- Address Proof of firm – If the registered office place is rented, rent agreement and one utility bill (electricity bill, water bill, property tax bill, gas receipt etc.) have to be submitted. Also, NOC from landlord will be submitted.
If the registered office place is own, utility bill has to be submitted mentioning the name of the owner. Also, a NOC from the owner (owner as mentioned in utility bill) has to be submitted.
List of Registration you can obtain for Partnership firm in India:-
1. PAN card of firm – Partners need to apply for PAN of the firm.
2. Shop Act Registration or Form 3 : Registration under Shop and Commercial Establishment Act Commonly known as “Shop Act Registration” Most of the Banks open Current Bank Account for this Registration.
3. GST Registration: As GST Registration is Mandatory only if Gross Sales within state exceeds Rs. 40 Lakh in any Financial Year , but you can voluntary take GST Registration,
- GST Registration is Mandatory if you are selling products on E commerce Marketplace Websites like : Amazon, Flipkart, Snapdeal, Ebay etc. also if you are running ads for your business promotion on popular Social Networking like Facebook , Twitter etc.
- GST Registration is required by vendors if they are registered under GST, this makes easier for them to make uniformity in business transitions.
- GST Registration is mandatory in case if you are doing interstate sales.
4. Udyog Aadhar Registration: Udyog Aadhar Registration is for MSME Enterprises, this registration will give recognition of MSME enterprise for your business.
5. Opening of Current Bank Account in the name of Business.
Once you get any of the above registration certificate, you can contact to the Bank with which you wish to open your current account.