How to Register Partnership Firm
Choose A Name for Firm
Preparation of partnership deed registration
A partnership deed is a written agreement between two or more partners willing to undertake business jointly. The deeded is consist of all the mutual terms , legal terms , profit sharing ratio, kind of partners , admission of new partner , nature of business etc.
- Name of Firm
- Nature of business of firm
- Date of commencement of business
- Duration of partnership (whether for a fixed period/project)
- Capital amount introduction by partners
- Profit sharing ratio among the partners
Additional Clauses to be taken in to account for firm registration
- Salary to be paid to working partners
- Interest on capital of partners
- Division of work
- Role and responsibilities of partners
- powers and obligations of all the partners
Decision of Partnership Firm registration
Issues with Unregistered partnership firm
Where in case partners chooses to not to register a partnership firm in that case there may be some disabilities which are extremely inconvenient.
- An unregistered firm cannot file a suit against a third party to enforce a right arising from a contract.
- The unregistered partnership cannot file suit in the firm name
- The partner cannot claim his rights from the fellow partners arising out of the partnership deed.
- Non-Registration Of The Partnership Firm Has No Legal Bearing On The Criminal Case
Documents required for Partnership Firm Registration?
Following are key documents needed for the partnership firm registration. A written document is needed to undertake business jointly between two or more partners.
Following documents needed for a firm registration.
- PAN Card
- Address Proof (Passport / Driver’s License / Voter’s ID / Adhar )
Address Proof of Business
- Latest Light Bill
- Rent Agreement / NOC of Owner
Partnership firm registration form is Form A
Taxation of Partnership Firm
For Financial year FY 2017-18 below is taxable
- Income Tax at a flat rate of 30% is levied on Partnership Firms and LLP’s.
- Computation of taxes as per Income Tax Slab Rates is not allowed as the benefit of Slab Rates is only available to Individuals and HUF’s.
- Education Cess @ 2% and SHEC @ 1% would also be required to be paid.
- Remuneration and interest received by partners shall be taxable in hand of partners under PGPB
Government Partnership firm registration fees in Maharashtra is Rs. 1623/-