Patna Company Registration

Partnership Registration

Partnership Registration in Patna Bihar means formation of Partnership firm in Patna. Partnership is an association of two or more persons, who entered into an agreement to carry out a profit making business. Partnership is managed by its partners.

Partnership Registration

A partnership is an arrangement where parties, known as partners, agree to cooperate  to advance their mutual interests. The partners in a partnership may be individuals, business, interest based organizations, schools, governments or combinations.

DEFINITION

      A partnership is a form of business where two or more people share ownership, as well as the responsibility for manging the company and the income or losses the business generates. That income is paid to partners, who then claim it on their personal tax returns – the business is not taxed separately, as corporations are, on its profits or losses.

It is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objective set out in the partnership deed. This structure is thought to have lost its relevance since the introduction of the limited liability partnership because its partners have unlimited liability, which means they are personally liable for the debts of the business. However, low costs, ease of setting up and minimal compliance requirements make it sensible option for some, such as home business that are unlikely to take any debt registration is optional for general partnership.

WHY TO GET REGISTERED

  • Minimal compliance
  • Ease of setting up and low cost
  • Can sue other partners and third party after registration

PROCESS INVOLVED

  • Submit, upload and mail your documents to us.
  • Once documents is submitted and payment is made, we file partnership registration application.
  • A deed containing all the elements of agreement among the partners is made and signed by all the partners.

DOCUMENTS REQUIRED

  • Form no.1 ( application for registration under partnership act)
  • Original copy of partnership deed, signed by all partners.
  • Affidavit declaring intention to become partner.
  • Rental or lease agreement of the property/campus on which the business is set.

FREQUENTLY ASKED QUESTIONS

  1. What are the minimum and maximum number of members required?
  • From its name it is clear that there should be more than one person to form a partnership firm.
  1. Is partnership firm a separate entity?
  • The partners in a partnership firm are the owners, and thus, are not sperate entity from the firm.
  1. Is registration of a partnership firm necessary?
  • No, registration of a partnership is not necessary. However, for a partner to sue another partner or the firm there must be registration done. As there is no existence in the eyes of law. So that it is always advisable to register your firm.
  1. What are the documents required for registration of the firm ?
  • Form no.1 ( application for registration under partnership act)
  • Original copy of partnership deed, signed by all partners.
  • Affidavit declaring intention to become partner.
  • Rental or lease agreement of the property/campus on which the business is set.

 

ADVANTAGES

  • Only registered firm’s partner can file a suit against partner in the court.
  • Registered firm’s partner can file a suit against the firm
  • Only registered firm can file suit against the third party
  • They only have the power to claim set off
  • Higher credibility
  • It can be easily converted into entity

DISADVANTAGES

  • If it is not mentioned in the deed then after the death or insolvency of any partner the partnership will be dissolved automatically
  • Since number of members are limited i.e,20 hence there is a limitation of capital.

 

TYPES/CATEGORIES

Types of partnership are listed below;

  1. General partnership:- a general partnership is a partnership with only general partners. Each general partner takes part in the management of the business and also takes responsibility for the liabilities of the business. If one partner is sued, all partners are held liable.
  2. Limited partnerships:- a limited partnership includes both general partners and limited partners. A limited partner does not participate in the day to day management of the partnership and his/her liability is limited. In many cases, the limited partners are merely investors who do not wish to participate in the partnership other than to provide an investment and to receive a share of the profits.
  3. Limited liability partnerships:- a limited liability partnership is different from a limited partnership.

Formation:

  1. Unlimited liability of partners
  2. Slow Decision Making
  3. Quarrel/Fight between partners
  4. Risk of stealing of Business information/assets especially IPR
  5. Flat rate of taxation
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