Partnership Firm

Partnership Firms Registration in India

Partnership Firms work on the basis of a legally approved business agreement made between the partners (Minimum 2, Maximum 20) on the concerned commercial activities, responsibilities and share of profit. Partnership Firms and their regulations are prescribed as per the guidelines of the Indian Partnership Act 1932. This Business Agreement is the MANDATORY element for every Partnership Firms more than its Registration and accordingly, these units should be fulfilling the applicable annual compliances. For that reason, Partnership Firms are considered to be unlimited liabilities that include personal assets of partners within business purposes. Therefore, it is essential to have the primary knowledge about the protocols and compliances followed to operate a Partnership Firm.

Annual Compliances of A Partnership Firm After Establishment

Once a Partnership Firm is established, the partner(s) should be agreeing on the following terms to operate the business:

• Agreement between the Partner(s) on the Terms and Conditions
• Distribution of Business Profit
• Business responsibilities should be under control of its partners as per the legal agreement finalized between them.
• Every Partnership Firm is liable to complete these annual compliances within prescribed due date once it is established:
• Company Registration within 1 year of setup (By filling Form I as per Companies Act, 2013 NOT Compulsory, but Advisable)
• Making annual Income Tax Return (ITR-5, as per Income Tax Act, 1961)
• TDS Return Filing
• In case, the Firm receives annual turnover of over INR 2 Crore, Books of Account should be maintained and audited with practicing Chartered Accountant as per Income Tax Act, 1961
• GST Compliances
• VAT/CST Filing
• Service Tax Filing

Documentation for Partnership Firm Registration

• Address and ID Proof of Partners, such as, Driving License/Passport/Voter ID, etc.
• Passport size Photograph of Partners
• PAN details of the Partners
• Address proof of the business space
• If you own the business space, then provide property papers.
• Landlord's NOC, if business space is rented
• Latest Electricity/Water Bills of business space