For any partnership business, minimum two persons have to come together with the same business idea and policies. Agreement between them would be addressed as Partnership Deed. You are also required to know that every state in India has varying stamp duty. So, you vitally have to comply with the terms and conditions of the location where you are supposed to start the business. Always keep in mind that rules and regulation for this sort of business are very strict therefore you essentially need experts to help in the best possible manner while complying with The Partnership Act, 1932. Proper registration and KYC (Know Your Customer) will automatically save you against different kinds of unpredictable blues.
Two designated people are required to start a partnership firm. Maximum 20 people as partners are allowed (number limits to 10 for banking business).
Minimum capital is not mentioned in any rule. It entirely depends upon the business requirement. Whereas stamp duty is based on amount of capital.
Only Indians can start above described business. It directly means any foreigner is not allowed to start this business. Read complete details before starting.
Always choose a unique name for your business. Similarity with others might land you in a highly difficult position to compromise on several terms.
Name of partnership firm must be unique. It should not show resemblance to logo, trademark or brand name to any existing partnership firm in any way. After procuring DSC and DIN, an application essentially has to be filed to ROC for name approval. Registrar possesses all the powers regarding approval of name. In order to reduce the possibility for any kind of confusion while deciding the name, you can talk to our representatives.
Drafting for partnership deed requires expertise and intelligence therefore never try yourself if do not have enough knowledge of the field. As a matter of fact, partnership deed must consist all terms and conditions with concise and precise words. According to the stipulated rules and regulations, everything will be cleared regarding capital, profit sharing, removal of partners, inclusion of partners, salary, and many others.
Always draft partnership deed with clear terms and conditions. Signatures of all partners are inevitable for effective implementation of deed. After the signing the deed, everybody agrees to maintain the stipulated rules. In addition, it brings confidence among all partners to take the best foot forward in order to take business forward as far as popularity and revenue are concerned.
According to the partnership act 1932, it is not mandatory to register the firm. But, section 59 imposes the limitations. As per this constraint, it is recommended to get the firm registered under the supervision of registrar of the firm that too in a stipulated manner. During registration application filing, KYC of partners, copy of deed, KYC of premises and NOC from the owner essentially has to submitted.
Income Tax Department of India allots Permanent Account Number (PAN). It consists alpha numeric number up to 10 places. In order to get PAN for partnership firm, you essentially have to submit Form No 49A to the concerned authority along with the copy of partnership deed to get the PAN Card. It takes around a week time. Keep in mind that more time could be taken for further process.
Every tax payer is liable to deduct the tax while making transaction for any kind of business activity. Authority has set varying TDS rates ranging between 1-20%. TDS directly goes to the Income Tax Department of India. In order to comply with TDS rules, every tax payer essentially has to procure Tax Deduction Account Number. It is also available with ITO.
Aadhaar Cards and PAN Cards of owner/ directors/ partners.
Electricity Bill/ Rent Agreement or Letter of Consent (NOC).
Letter of Authorization for signatory
Bank statement/ Cancelled Cheque
Partnership is a formal arrangement in which two or more parties cooperate to manage and operate a business.
The limited liability partnership act was introduced in 2008. According to this act, the partners who participate are liable for liabilities in proportion to their contribution to the business.
A private limited company is a type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 50.