The term company is an association of persons with a common goal of achieving profits. Before doing business the startups must choose the specific type of company or business entity. There are different kinds of legal entities such as Private Limited Company, Sole Proprietorship, Public Limited Company and lots more. Partnership firm is an ideal option for small businesses that is governed by The Partnership Act, 1932. This is the most popular form of business constitution that is owned, managed and controlled by the people association for profit generation. Minimum two persons can form a partnership firm that can be extended to maximum of up-to 20 partners.
Partnership Registration India is the initial step and beneficial for the people when planning to establish a new company. However, it is not mandatorily required and there are no penalties for non-registration the partnership firm but it is always suggested to implement the procedure because there are many rights that are denied to an unregistered partnership firm and are also deprived of some legal benefits. There are several advantages attached with registering the partnership firm as it allows the person to form or extend the business anywhere in India.
A partnership deed is documented or drafted amongst the partners that give the information about the total amount of capital the partners have contributed individually in the partnership. It also pinpoints how much profit/loss each of the partner will share. Partners of the firm have the liberty to draw a salary as specified in The Indian Partnership Act. Working partners are the actual owner of assets purchased by the firm in its name.
There are many benefits of Partnership registration such as:
- Limited liability
- Separate legal entity for each partner
- Owning property
- Uninterrupted existence
- No requirement of minimum capital contribution
- Lesser tax as compared to other companies
- Easy transferability
To avail of certain benefits and legal rights under law, the partnership firm must be registered. Though the firm registration is not directly mandatory but indirectly it is necessary. Nowadays, it is very easy to go through the registration because there are many companies providing Partnership Registration in Delhi services to clients assisting them in getting the troublesome task done in hassle-free, legal, easier and quick way. The legal teams follow all the procedures that are necessary.
Given below are some of the steps involved in Partnership Firm Registration:
- Acquire DPIN (Designated Partner Identification Number) for every proposed partner
- Apply for company name
- Filing an application or registration documents on accurate form
- Submitting the required documents to the Registrar
- Documentation and filing of partnership agreement and consent of designated partners
Following all these steps along with handling the other business tasks is not easy for the entrepreneurs hence it is advised to take services of Partnership Registration India from leading company. If you are looking for the partnership registration then find the reliable company and leave all the responsibilities on them to get everything done accurately in legal way.