• Company Registration India,Company incorporation India,Company formation services
  • Company Registration India,Company incorporation India,Company formation services
  • Company Registration India,Company incorporation India,Company formation services
  • Company Registration India,Company incorporation India,Company formation services
  • Company Registration India,Company incorporation India,Company formation services
  • Company Registration India,Company incorporation India,Company formation services

Other Business Registrations Bangalore - Partnership Firm

The Indian Partnership Act, 1932, defines a Partnership as ‘the relation between persons who have agreed to share profits of the business carried on by all or any of them acting for all'. This definition gives three minimum requirements needed to constitute a partnership. They are,

• There must be an agreement entered into orally or in writing by the persons who desire to form a partnership.
• The object of the agreement must be to share the profits of business intended to be carried on by the partnership, and
• The business must be carried on by all the partners or by any of them acting for all of them.

A common method, by which business activities are carried on in India on a small or medium scale, is through the Partnership business. Although Partnership exists as an entity for tax purposes, under the general law a Partnership is not a separate entity distinct from the partners.

Partnership firm arises from a contract between two or more persons who contribute tangible or intangible assets together with an objective of earning profit that will be shared between them in predefined portions. Therefore, to form a Partnership firm, there shall be a minimum of 2 partners and a partnership deed. The number of partners should not exceed 10 in case of “banking business” and 20 in case of “other business.”

Steps to Start a Partnership Firm:
• Finalize a business name.
• Prepare Partnership deed which will govern the relationship and other aspects of business.
• Register the firm with Registrar of Firms (optional).
• Obtain PAN for the Partnership Firm.
• Obtain various licenses required to run a business.
• Open a Bank account.

Documents like Address proof and ID proof of the Partners are required.
Companies Act, 1956, provides that the number of partners in a firm shall not exceed 20, and a partnership having more than 20 persons will be illegal.

A partnership firm is required to be registered under sections 58 and 59 of the Partnership Act, though it is not compulsory. The main handicap lies in fact that a partnership firm or its partner cannot file a suit against a third party.

Every change in the constitution of a partnership is also required to be registered. But if it is not registered, then there are certain handicaps stated in S.69 of the Act. For the purpose of income tax benefits, it is necessary to register a partnership with the Department under the Income Tax Act, 1961.

Proprietorship Firm:
Registration is not required in the case of a proprietorship firm. Since there is no process for the application for availability of name (as in the case of companies) applicable, you have to open a bank account with a preferred name & style. In the case of a business liable for VAT and / or Service Tax registration, then you have to obtain VAT and / or Service Tax registration. For sole proprietorship, no separate income tax PAN is required. The PAN of the proprietor will be the PAN of the firm and proprietor will have to file income tax return in his personal name.

Address

  • Country:India
  • City:Bangalore
  • Phone:+91 80 2649 6999
  • Mobile:+91 77 9501 8290
  • Email:info@sunshinecorp.biz

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