Partnership Firm

A Partnership Firm is a popular form of business structure where two or more individuals or entities join together with the aim of conducting business and sharing profits and losses. Here's an overview of a Partnership Firm:

Characteristics of a Partnership Firm:

Number of Partners: A Partnership Firm can consist of a minimum of two partners and a maximum of twenty partners (or ten partners in the case of a banking business) as per the Indian Partnership Act, 1932.

Partnership Deed: A written agreement called the Partnership Deed outlines the terms and conditions regarding profit-sharing, capital contributions, responsibilities, and decision-making among partners.

DOCUMENATION

To establish a Partnership Firm in India, certain essential documentation is required. Here's a list of key documents needed to form a Partnership Firm.

Essential Documentation for Partnership Firm Formation:

Partnership Deed: The Partnership Deed is a legally binding document outlining the terms and conditions agreed upon by the partners. It includes details such as the name of the firm, business activities, capital contribution by partners, profit-sharing ratio, rights, and responsibilities of each partner, etc.

Partners' Details: Identity and address proof of all partners including PAN card, Aadhaar card, Passport, Voter ID, etc.

Passport-sized photographs of each partner.

Registered Office Address Proof: Proof of the registered office address of the Partnership Firm, such as a utility bill, rental agreement, or property deed.

Partnership PAN Card: Apply for a PAN (Permanent Account Number) for the Partnership Firm, which is necessary for various business and taxation purposes.

Bank Account Opening Documents: Documents required by the bank to open a bank account in the name of the Partnership Firm. This may include the Partnership Deed, identity/address proofs of partners, PAN card of the firm, etc.

Stamping of Partnership Deed: The Partnership Deed should be appropriately stamped in accordance with the Indian Stamp Act.

Optional Registration Documents (For Registered Firms): Application for registration with the Registrar of Firms by submitting the Partnership Deed along with the prescribed form and fees.