Partnership Firm Registration
Partnership serves as an answer to the needs of greater capital investment, varied skills and sharing of risks. Partnership firm is ideal for small businesses that plan to remain small.
Timeline - 7 Working days
What is a partnership firm?
Partnership is a common form of business. Two or more people come together to carry on a business and share the profits and losses. Liability of the partners in a partnership firm is joint and several. A partnership firm is not a separate legal entity distinct from its memebers. It is merely a collective name given to the individuals composing it. Hence, unlike a company which has a separate legal entity distinct from its members, a firm cannot possess property or employ servants, neither it can be a debtor or a creditor. It cannot sue or be sued by others.
Partnership Firm Registration)
Characteristics
Existence of an agreement
Limited Liability partnership are not required to audit the accounts. Any other company (Public,Private) are mandated to get their account audited by the auditing firm. LLP is required to audit their account only when crosses the turnover as prescribed.
Existence of business
Limited Liability Partnership can be started with the minimum amount of capital money. Capital may be in the form of tangible, movable asset like Land, machinery or intangible form.
Paid-up Capital
A one person company can be started with 1 lac. If the paid up capital of the company increase to 50 lacs or more the OPC will become automatically.
Sharing of Profit
The purpose of partnership should be to earn profits and to share it. In the absence of any agreement, the partner should share profits (and losses as well) in equal proportions.
Contractual Relation
The person joining the partnership enters into a contract for running the business. According to Partnership Act, the relation of partnership arises from contract and not from status. The contract may be oral or written but in practice written agreement is made because it helps to settle the disputes if they arise later on.
Unlimited Liability
As in the case of a sole-trade business liability of the partners of a firm is unlimited. In case some obligation arises then not only the partnership assets but also the private property of the partners can be taken for the payment of liabilities of the firm to the third parties. The creditors can claim their dues from anyone of the partner or from all the partners. The partners are liable individually and collectively.
Restriction and Transfer of Share
No partner can sell or transfer his share to anybody else without the consent of the other partners. In case any partner does not want to continue in the partnership, he can give a notice for dissolution of the firm.
Non-transferability of interest
No partner can assign or transfer his partnership share to any other person so as to make him a partner in the business without the consent of all other partners.
Registration of firm
Registration of a partnership firm is not compulsory under the Act. The only document or even an oral agreement among partners required is the ‘partnership deed’ to bring the partnership into existence.
Nature of liability
The nature of liability of partners is the same as in case of sole proprietorship. The liability of partners is both individual and collective. The creditors have a right to recover the firm’s debts from the private property of one or all partners, where firm’s assets are insufficient..
Partnership Firm Registration
Advantages
Sharing of risk
Risk is shared amongst the partners.
Better Management
Better management of business can be done as the number of persons managing the business are more.
Larger resources
More resources can be procured from all the partners when compared to sole proprietorship.
Ensures secrecy
The statement of accounts of the firm need not be published and this ensures secrecy.
Easy to form
A partnership firm is easy to form. An oral or written agreement between the partners is all that is needed to start a partnership.
Partnership Firm Registration
Disadvantages
Unlimited liability
All the partners are jointly and severally liable for the liabilities of the firm.
Lead to dissolution
A partnership firm does not exist for an indefinite period of time. i.e., insolvency or lunacy
Separate legal status
A partnership firm does not have a separate legal status, a firm cannot own asset
Cannot access public funds
A partnership firm cannot invite funds from public.
Process
What is the process for Partnership Firm Registration Online Tamilnadu ?
Draft a partnership deed
A deed of partnership is required to be made out and registered under the Indian movable property Act together with other movable properties involved.
Fill Form 1
This is the Prescribed Registration Form for Incorporation of a firm. It should be filled and along with documents to be submitted to ROF
Submission
Submit the duly filled Form 1, stamped partnership deed and Lease agrrement to RoF(Registrar of Firms)
Certificate of registration is issued by RoF
After verification of all Submitted documents, RoF will issue Certificate of Registration
FAQ
About Wealth Bridge
We Help You To Form Your Company In A Simple Way Wealth Bridge Will Making More Possibilities which aims at providing much-needed funds to businesses across the trading and service industry
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Gandhinagar, Katpadi, Vellore
(+91) 416 2241199
(+91) 86677 53901
Branches
ARAKKONAM OFFICE
# 10/1, Thiruthani High Road ,
Upstairs to Central Bank ,Jothi Nagar,
Arakkonam , TamilNadu - 631003
Phone:+91 6381184522 , +91 8012747723.
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No 126, MBT Road, Mahaveer Complex,
First Floor, Muthukadai,
(NearDarling bakery) Ranipet - 632401
Phone : +91 417 2295006 +91 86675 42148