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Goods and Bads
Partnership Firm comes with its own pros and cons which is very important for decision making purposes
Advantages
- Ease of formation and dissolution
- Minimal regulatory compliance
- Shared responsibility and decision-making
- Flexibility in operations
- Greater access to capital compared to a sole proprietorship
Disadvantages
- Unlimited liability for partners
- Potential for disputes among partners
- Limited access to capital compared to companies
- Lack of continuity due to partner changes
Process
Step by Step Process
Choose a Partnership Name
Select a unique name for your Partnership Firm that is not identical to any existing registered firm.
Draft Partnership Deed
Prepare a Partnership Deed outlining the terms and conditions, profit-sharing ratio, duties, and responsibilities of the partners.
Notarize the Partnership Deed
Get the Partnership Deed notarized to make it legally enforceable.
Apply for PAN
Apply for a Permanent Account Number (PAN) for the Partnership Firm from the Income Tax Department.
Register the Partnership Firm
Register the Partnership Firm with the Registrar of Firms in the respective state, if applicable.
Open a Bank Account
Open a bank account in the name of the Partnership Firm for business transactions.
Tax and Compliances
Following are the Compliances that will be required
Income Tax
Partnership Firms are taxed as separate entities under the Income Tax Act. Profits are taxed at a flat rate of 30% plus applicable surcharge and cess.
GST Registration
If the firm's turnover exceeds the GST registration threshold, it must register for GST and comply with GST filing requirements.
Annual Compliance
Partnership Firms must file income tax returns annually. Additionally, if the firm's turnover exceeds certain limits, it must get its accounts audited.
Documents Required
Following are the documents that will be required
Partnership Deed
A duly drafted and notarized Partnership Deed signed by all partners.
PAN Card
PAN cards of all partners.
Address Proof
Utility bills or rental agreement as proof of the firm's registered address.
Identity Proof
Copies of Aadhaar card, voter ID, or passport of all partners.
Photographs
Passport-sized photographs of all partners.
Deliverables
The service package includes a comprehensive list of deliverables which includes the following.
Registered Partnership Deed
PAN Card for Partnership Firm
Partnership Firm Registration Certificate (if applicable)
GST Registration Certificate (if applicable)
Bank Account Setup Assistance
Frequently Asked Questions
Answered all frequently asked questions, Still confused? feel free to contact us.
Is physical presence required during the process?
No, physical presence is not required. Scanned copies of all the required documents & forms will hold good to complete the procedure online. Also, we at Taxkriya, always encourage faceless and paperless process in all our services. We also provide video/ audio call support at your convenience.
Should we mandatorily register for partnership?
No, it is not mandatory. However, registering it with registrar of firms is recommended to keep the entity valid and enforceable.
How can we register for partnership?
It is now very easy to register a partnership firm online through official website of respective state authorities.
How easy is it to convert a partnership/LLP/OPC/Private limited company?
It involves additional efforts and time to convert sole-proprietorship to other legal entity. However, taxkriya team will support and guide you in easy conversion to another legal entity.
Hear from the Entrepreneurs
Here is a jist of what some of our customers had to say about our services. We tend to work relentlessly to create smoother experiences for the clients.
Jalal JC3 Property Store Private LimitedWonderfull service in minimum charges. I recommended to who want register your company and need of all official services. Taxkriya is the best choice.
Krishna ChaitanyaCognikey Technology Solutions Private LimitedTaxkriya is a wonderful experience for me they helped me to do smooth process in forming company for me and very friendly persons who takes our inputs and also suggest which is best for us.
Ganta Sai AkhilSketchz engineering LLCI genuinely recommend Taxkriya and found this as one of the smoothest process in forming an LLC. The support from the team was absolutely good and support from Mr. Gowtham was purely exceptional.