What is Partnership?

A Partnership is a contract (Partnership deed) between two more parties come together to engaged in a business operations, distribute profits, Interest, commission salaries as stated in the deed. Further the Parties are obligated for any liability in their profit sharing ratio.

In India all the Partnership firms are governed and regulated by “The Indian Partnership Act 1932.”

In Simple Words

• In India Partnership firm is the second most common way to do businesses after Proprietorship.
• A minimum of two persons are required to establish a partnership firm.
• Partners distribute Profits, Interest, Salary, commission, Liability as stated in Contract (Deed).
• In India all Partnership firms are governed and regulated by “The Indian Partnership Act 1932.

Partnership Deed?

Partnership deed is a written legal document which contains an agreement made between two or more parties who have the intention of doing business with each other and share profits and losses. It is also called a partnership agreement.

Advantages of Partnership ?

• Distribution of work between Partners.
• Partnership Firm has Separate Pan, Tan Number.
• Easy to establish and start-up costs are low.
• More capital is available for the business.
• Partnership has greater borrowing capacity.
• High-calibre employees can become partner.
• Taxes are paid by firm, so individual tax saving
• Partners’ business affairs are private.
• There is limited external regulation.

Registrations Require for Partnership ?

1. Pan Card.

The Partnership Firms enjoy the benefit of separate Pan card and Tan Number which in India which  need to be allotted to every valid partnership firm.

2. Goods & Services Tax (GST).

It is Mandatory for businesses to register in GST as regular taxable persons if their annual turnover exceeds the threshold limit of Rs. 40 lakhs ( For Goods) or Rs. 20 lakhs ( For Services), or Rs. 10 lakhs, as applicable for some special cases.

For above mentioned businesses it is mandatory to generate the GSTIN. If the company conducts business activities without registering for GST, it is an offence and the business will face severe penalties. Read more

3. MSME / UDYAM Registration.

MSME/Udyam certification is a system for enrolling Micro, Small, and Medium Enterprises (MSMEs), introduced by the Ministry of Micro, Small & Medium Enterprises on 1st of July 2020. Further, the Ministry revises the MSME classification criteria from time to time. Under this system, After successful registration and generation of certificate every Enterprise is allotted with a 16 digit alphanumeric Number (UDYAM-XX-00-0000000).Read more

4. FSSAI Food License.

Food license is a document issued by the Food Safety & Standards Authority of India to all kind of Food Business Operators (FBO) i.e Food Manufacturers, Traders, Restaurant / Hotel Owners, Kirana / fast food Shops, Pan Masala,  Nutritional products,  Importers/ Exporters etc.

It is a 14-digit unique license number , which has to be quoted on all food packages, Sign Boards, cash counters and Invoices. The License / Registration number is also required even if food products are not packaged or to be use further as raw material. Read more

Partnership firms engaged in a business related to food need to register in FSSAI

5. Shop & Establishment

In India every state has it own Shop and Establishment Act to regulates the shops and commercial establishments operating within the state.The shops and commercial establishments must be mandatorily apply for registration under your respective state Act. All establishments and business, including the people working and maintaining a business from home (i.e cloud kitchen, hanadcrafts), must obtain a Shop and Establishment Registration Certificate or Shop License (“Certificate”) under the Act. Read more

6. Income Tax Filling

A Proprietor having a Valid pan need to register under Income tax law through Income tax website when he cross the basic exemption limit (250000) and now obligatory to pay income tax on his earned income.

7. Bank Current Account

 Finoleg.com will help you to choose Best Bank for your Firm’s current account having more features in it.

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• Best Customer support
• Account analytics and Data
• Cheque in Firm’s Name
• Net Banking, NEFT , RTGS
• Bank Overdraft Facility