Incorporating your business under a regulatory authority is the most critical step to legitimize your business in India. Not only it will give you a plethora of benefits but will save you from dealing with several legal issues in the future. However, choosing the right business structure before incorporation is the biggest question you have. Let us present you with an answer – register your business as a partnership firm.
Partnership firm registration as a business entity has gained popularity in India. It is popular among those who wish to start a family business within their locality. As it has fewer members and owners, for many, it is the perfect recipe to gain success in India. Here, we will look at the process of registering a partnership in India.
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A Partnership is a business entity where two or more partners come together to do business and share profits in a manner determined by the partnership deed. Suitable for small businesses, a partnership firm is the infrastructure of choice for many entrepreneurs in India.
But why such a firm is popular in Delhi? Well, the national capital is a place filled to the brim with Chartered Accountants and such. They often seek a business entity that has minimal compliance but yields maximum profit. And thus, registering a partnership firm is the very thing that meets their need.
Other reasons consist of a few legal complications, Partnership firm registration is a process that happens under the Partnership Registration Act, 1932. This act is old and so is the process, which makes it easier for the entrepreneurs to set up a business entity as soon as they get a business idea.
Because a partnership firm is a business entity with no statutory body, it doesn’t require any statutory fees. However, when you combine the stamp duty and the professional charges, the partnership registration fees becomes as follows:
Overall, the partnership registration fee you need to pay is INR 2,999/-. It might be less than that, but it will depend upon the nature of your business.
Two types of partnership firms exist, registered and unregistered. Registered obtain a certificate as per the Partnership Registration act. As for the unregistered firms, no one knows about them.
While an unregistered firm will also give you success in days to come, here are some of its drawbacks:
If these terminologies sound alien to you, just know that when you start an unregistered partnership firm, you basically give away your rights to file a court case against anyone.
First off, know that online registration of a partnership firm is not a possibility. Thus, you need to submit the physical copies of the documents listed below:
One of the following officials must attest the documents above:
Once you have obtained the documents listed in the above section, follow the steps below to register your partnership firm:
After a thorough assessment,
you will obtain the partnership registration certificate.
As you can probably guess, the partnership firm registration process is lengthy. So, you must question – why go through all this trouble if you can just as easily establish an unregistered partnership?
The answer to your question lies in the advantages of partnership firm registration:
Registering a partnership firm in India comes with a plethora of advantages. And when you establish one in Delhi, these benefits become ten-fold. Know more about partnership firm registration if you have to. And for further details, contact our experts.