How do you register a Partnership company in India?
What documents are required to register a Partnership Firm in India?
Any of the following documents can be sent as proof of identity and address proof.
1. PAN card
3. Driver’s License
4. Aadhar Card
5. Voter ID
Proof of Business Area can be established by submitting the following documents:
1. Sale Letter if the Partner owns the property
2. A copy of the lease agreement if the office is rented
3. A copy of the latest electricity bill or tax receipt
How to register a Partnership Firms in India?
- Initially, a consultant from our AK tax team will inform you of the process and provide you with a list of documents required for Registration.
- Document submissions can be made online through our mobile application or our website.
- Once the document verification has been completed The Partnership Deed is drafted and sent to partners for receipt of the signature.
- It should be noted that all partners must sign the documents on the stamp, and the same copy should be uploaded to our forums.
- Once a signed Title Deed is available, it is registered with the relevant Registrar of firms, and the registration certificate is issued to the partner.
- As well as providing a Partnership Registration Certificate, we also help you open a current bank account in the name of the Partnership firm.
Types of Partnership firm
- Depending on the level of credit during the registration of a partner company, we may receive different categories of partners.
- Partnership firms can be divided into two types of registered and unregistered Partnership firms. India’s Partnership Law states that the only way to determine whether to start a business as a Partnership is to complete and execute a joint venture between your partners.
- Under this action, Partnership firms do not need to be registered. As a result of this partnership many existing businesses such as unregistered Partnership firms.
- There are no penalties for not registering affiliate firms. Also, a Partnership firm can be registered even after construction. But unregistered Partnership firms are denied certain rights in Section 69 of the Co-operatives Act, which deals mainly with the effects of non-registration of a Partnership firm.
Here are some reasons why a person should choose a registered partner company:
- A registered partner may not apply to a court in any court against the firm or other partners for the exercise of any contractual right or the right granted by the Co-operatives Act.
- No liability to enforce an agreement arising from an agreement may be entered into in any court by a company or on behalf of a company against any third party unless that company is registered under the Co-operatives Act.
- The unregistered firm or any of its partners may not seek redress or other proceedings in a dispute with a third party.
- Therefore, it is best to register the Partnership sooner or later.
What Are The Benefits Of A Partnership Company Registration?
- In a Partnership Company, decision-making is quicker as there is no concept like passing a decision.
- Partner Companies in India enjoy a lot of power as they can do business on behalf of our partner license.
- The Partnership can raise money faster compared to the Proprietorship firm.
- Even banks that receive a Partnership are more profitable while penalizing debt services compared to an Ownership firm.
- As every partner owns, partners have the freedom to manage and control the company’s operations. Tasks may be different, but the people of the Partnership firm are united for the same purpose.
- Ownership creates a high sense of accountability and belonging, which helps to create active employees.
What is the difference between a partnership and an LLP?
- A partnership firm is registered through AK taxes starting from Rs.5899
- LLP can be registered online starting at just Rs.7899 through AK taxes
- A partnership firm is registered under Section 58 of the Indian Partnership Act.
- LLPs in India are registered under the Ministry of Corporate Affairs, Central Government.
- In a Partnership, the partners jointly venture to share the profits and losses.
- In an LLP, the Partner is not responsible for any negligence or misconduct of another partner. LLPs also provide liability protection to the owners from the debts of the LLPs.
- Partnerships must have two minimum of two partners to be registered. If the number of partners reduces below mandatory two due to death or incapacitation, the firm will stand dissolved.
- Similar is the case with the LLPs. At least two members are required to get registered. If the number of Partners reduces below 2, the Partner would still find a new partner without dissolving the LLP.
How do you convert a Partnership into an LLP?
In the past, LLPs have been a staple in small and medium enterprises. Let’s look at the process of converting a Partnership into an LLP.
To initiate the conversion of the Partnership into an LLP, Digital Signature Certificate and DPIN OR Director’s Identity Number (DIN) must first be obtained from all partners.
The following documents and Form 17 are required:
1. Partner approval for LLP conversion
2. LLP Installation Documents
3. NOC from tax authorities
4. Financial statements of the Partnership firm
5. List of all debtors and their consent
6. Any other document or information as requested by the authorities.
Once the specified documents have been sent to the Registrar after verification, the LLP registration certificate is issued.
The LLP must then notify the relevant Registrar of Firms of the conversion of the partnership into LLP within 15 days from the date of conversion of the prescribed forms.
Salaried people are not needed to get TAN or deduct tax at the source. A proprietorship business and different elements should deduct charges at the source, making specific installments like compensation, payments to the contractor for hire or the subcontractors, a measure of lease surpassing 1, 80,000 every year, and so on. On deducting the TDS, the element with TAN registration will give a TDS certificate as verification of collection of tax.
What is the process of licensing and registration?
Licenses, authorizations, permits, or registrations will not be transferred directly to the LLP. Also, let’s say there are any properties registered under the Partnership firm before the conversion. If so, the LLP should go to the relevant authorities and initiate the prescribed transfer process. Therefore, before converting a Partnership into an LLP, a Partner must clarify all aspects.
After being converted to LLP, the Partnership will still be dissolved, and the name of the Partnership firm will be removed from the Companies Registrar register. The Partnership is considered to be fully transferred to LLP, and the conversion does not affect any existing contracts, services, contracts, etc.
Partners will now enjoy Limited Liability Protection on all transactions made after the partnership is converted to LLP. Partners will continue to have a personal responsibility throughout the business that is operated as a partnership before conversion. After the LLP conversion, the newly formed LLP must submit a statement that it was converted from the partnership to LLP in all official communications for not less than 12 months from the date of conversion.
To convert a partner company into an LLP, visit the AK tax website. AK Taxes have helped more than a thousand entrepreneurs choose the right type of business venture. Our services have helped entrepreneurs grow their businesses at an affordable cost. We aim to assist the entrepreneur with legal and regulatory requirements and guide the person throughout the business life cycle, providing support and guidance at all stages. Our business advisors will help you choose the right type of business and guide you through post-installation compliance.