Fill up the Application Form
Submit Required Documents
Executive will Process Documentation
Do Submit Signed Documents
Submission of Final Application
Receiving a mail of Acknowledgement
Minimum Two Partners
An Amount of Contribution
Objective of the Business Firm
The third essential element of a partnership is that the partners must agree to carry a business together. The term "business" is quite broad, consisting of all trades, occupation or profession. Hence, if the purpose is to do some charitable work, it will not be called a partnership. Suppose A and B jointly purchased a team shop and required more expenses for buying pottery and utensils for regular usage, plus contributed equal capital and leased out the shop for rent that's shared mutually by them. In that case, it states that they are co-owners and not partners because they never started any business.
The Partnership is the product of a contract and not resulted from status, operation of law, or inheritance. Thus, if the father dies who is a serving member of the partnership firm, the son can only claim share but not a partnership unless he signs the contract to become a partner with the consent of other partner/partners. Similarly, the members of a HUF running a family business cannot be termed as partners because their relations are inherent and not emerged from any contract. Therefore, a "contract" is the core foundation of a partnership.
The condition of sharing profits ensures that the partners must divide their profits proportionate to their ratios. The amount invested by each partner determines this ratio. A partnership will not exist if the business has no objective of wealth or profit generation. Even if only one person enjoys all the business profit, it's still not incorporating the partnership firm.
The fifth and last element that defines the Partnership provides is that the business must be carried on by the efforts of all partners or anyone (one or more) that acts for them, i.e., a mutual agency. Thus, every partner is both an agent and principal for himself and other partners. He can bind by his acts the other persons and be bound by other partners' acts. The relevance of the element of mutual agency lies in allowing all partners to carry the business on behalf of other partners.
Guidelines for giving the names to the Partnership firm The name should be plagiarism-free, meaning wholly unique and not similar or identical to an existing firm. The name should restrain the words like an emperor, crown, empress, empire, or other words representing government approval or sanction.
A partnership deed is an agreement between the partners that mention all the obligations such as rights, duties, profits, shares. A partnership deed can be written or oral, although it is often recommended to write a partnership deed to circumvent any disputes in the future. Following details are required in a partnership deed: A. General Details: 1. Name and address of the firm 2. Name and address of all the partners. 3. Nature or type of business. 3. Commencement date of business 4. Capital to be contributed by each partner 5. A ratio of sharing Profit/loss among the partners B. Specific Details: Apart from these, specific clauses needed to be mentioned to avoid further conflicts: 1. Interest on invested capital, drawings of partners or any loans taken by partners for the firm 2. Salaries, commissions or any other amount payable to partners 3. Rights of each partner, including additional rights to be availed by the active partners 4. Duties and obligations of all partners 5. Adjustments or changes to proceed on account after the retirement or death of a partner or dissolution of the firm 6. Other clauses that partners may decide by mutual consent
Indian Partnership Act, 1932 is the law that governs partnerships business. Registration of a partnership firm is optional and the preference of the partners. A Registration of a partnership firm can be done anytime prior to business formation or anytime while carrying on the partnership business. It is always suggested to do the registration as it gives a plethora of benefits in the form of rights which are not available without the registration of the partnership firm.
An application form along with fees is to be submitted to Registrar of Firms of the State in which firm is situated. The application has to be signed by all partners or their agents.
Application for registration of partnership (Form 1) Specimen of Affidavit Certified original copy of Partnership Deed Proof of principal place of business (ownership documents or rental/lease agreement) If the registrar is satisfied with the documents, he will register the firm in Register of Firms and issue Certificate of Registration. Register of Firms contains up-to-date information on all firms and can be viewed by anybody upon payment of certain fees.
The registration of Partnership Firm in India can take up to 12 to 14 working days. However, the time taken to issue a certificate of incorporation may vary as per the regulations of the concerned state. The registration of Partnership Firm is subject to Government processing time which varies for each State.
Often, if the partnership agreement is not registered, the court may deem a partnership invalid. If the object of the business is illegal, the court may consider the partnership invalid and dissolve the partnership.
If the partners of a firm wish to end the partnership, they can do so by dissolving the partnership by notice, if it is a partnership of will. A partnership can be dissolved in accordance with the terms laid out in the Partnership Deed, or they can do so create a separate agreement.
In a certain sense, a partnership certification of incorporation can be revoked, this often termed as dissolution. A dissolution can be brought upon automatically when all partners or all partners except one partner are declared insolvent or if the firm is carrying unlawful activities, i.e. like trading in drugs or other illegal products, corporate malpractice or making business engagements with countries that may harm the interest of India.
Every partner is jointly liable with all the other partners and also individually, for all acts/activities of the firm, during the course of business while he/she is a partner. This means that if a loss or injury is caused to any third party or a penalty is levied during the course of business all partners will be held liable even if the injury or loss was caused by one of the partners.
First of all, our team completes the entire process in less than 10 days because of its skills and knowledge. Also, working with the best talents of the market, we closely keep a tab on all the amendments made to various laws. We also make it a point to keep you updated with all kinds of compliances. We also inform you about all the requirements on time.
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