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What are steps involved in registering partnership in India?

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What are steps involved in registering partnership in India?

A partnership firm is a type of company where two or more people join forces to run and manage a business together. It is based on a legal document called a partnership deed that outlines the partners’ obligations and profit-sharing agreements.

General Partnerships, Limited Partnerships, Limited Liability Partnerships (LLP), and Limited Liability Limited Partnerships are the many varieties of partnership firms. All partners in a general partnership registration are subject to unlimited responsibility. There are limited partners with limited liability and general partners with unlimited liability in a limited partnership. All partners are protected by limited responsibility under an LLP.

key Takeaways

  • Apply for licenses and permits required to conduct your business Company or LLP Registration – Choose whether you wish to register as a business or a Limited Liability Partnership (LLP) before proceeding.
  • Visit the Udyog Aadhar portal and submit the necessary business-related information to register.
  • Check your state’s unique regulations and apply for a license from the appropriate authorities.
  • Open a Bank Account and Register for Other Compliances Open a bank account in the name of the partnership firm: Based on offerings, costs, accessibility, and convenience, conduct research and choose an appropriate bank.
  • Tips to Make the Process Easier Use online portals to search for a unique name and apply for PAN and TAN – Use online portals to look for a distinctive name and apply for PAN and TAN to make the process simpler.

Draft and Register the Partnership Deed

  • Draft a Partnership Deed: Create a legal document outlining the rights, obligations, and liabilities of the partners in the partnership business by drafting a partnership deed.
  • Non-Judicial Stamp Paper: Print the partnership agreement on non-judicial stamp paper with the appropriate value, and make sure each partner signs it.
  • File Registration Application: submit a partnership registration application to the Registrar of Firms.
  • Submit Partnership Deed: Attach the Partnership Deed, which has been signed, to the registration application.
  • Pay Registration Fee: Pay the requisite registration fee, which varies depending on the partnership’s capital commitment.

Obtain PAN, TAN, and Other Licenses

Apply for a Permanent Account Number (PAN) for the partnership firm

By submitting the PAN application form along with the required paperwork, which includes the Partnership Deed, partner identity credentials, and address proofs, the partnership business can apply for a Permanent Account Number (PAN). PAN is necessary for several tax and financial procedures, such as opening a bank account, filing tax returns, and conducting business.

Obtain your Tax Deduction and Collection Account Number (TAN)

Send the TAN application form to the Income Tax Department to request a Tax Deduction and Collection Account Number (TAN) for the partnership firm. Include information with the application, including the partnership agreement, the partnership firm’s PAN, and address verification. To undertake TDS (Tax Deducted at Source)-related actions as well as a tax deduction and remittance on behalf of employees, TAN is required.

Apply for licenses and permits required to conduct your business

  • Company or LLP Registration: Choose whether you wish to register as a business or a Limited Liability Partnership (LLP) before proceeding. Consult a specialist to guide you in selecting the best structure and to help you with the registration procedure.
  • Udyog Aadhar Registration: You can choose Udyog Aadhar registration, which offers a special identification number, for small and medium-sized businesses (SMEs). Visit the Udyog Aadhar portal and submit the necessary business-related information to register.
  • FSSAI License or Registration: Obtain the Food Safety and Standards Authority of India (FSSAI) license or registration if your company engages in food-related operations such as the production, processing, packaging, or distribution of food goods.
  • Import Export Code: The Directorate General of Foreign Trade (DGFT) must issue you an Import Export Code (IEC) if your firm involves importing or exporting products and services.
  • The License under the Shop and Establishment Act: Apply with the municipal corporation or council where your business is located. Give information about your company, including its name, address, and type of operation.
  • Gumastha License: Also known as a Shops and Establishments Registration Certificate, a Gumastha license is necessary for enterprises in various states of India. Check your state’s unique regulations and apply for a license from the appropriate authorities.

These may include:

  • GST Registration: Register with the GST administration for the Goods and Services Tax (GST). Visit the official GST website to finish the registration procedure and enter all the information about your company that is required.
  • Trade License: Contact your neighborhood municipal corporation or council to request a trade license.

Open a Bank Account and Register for Other Compliances

  • Open a bank account in the name of the partnership firm: Based on offerings, costs, accessibility, and convenience, conduct research and choose an appropriate bank. Prepare the necessary paperwork, which includes the partnership deed, the partnership firm’s PAN, the partners’ identity and address credentials, and passport-sized photos. Visit the branch of the bank of your choice, open an account by filling out the application form, providing the required paperwork, and making the initial deposit. When the account is successfully opened, cooperate with any requests for more information, finish the verification procedure, and get the account information and checkbook.
  • Complete the account opening process by giving the bank the required tax-related information using the PAN and TAN you already got.
  • Using the pertinent documents and information gathered earlier, register for professional tax, ESI, PF, and other required registrations to ensure compliance with legal requirements.
  • Ensure timely observance of all requirements by remaining updated, keeping accurate records, submitting necessary forms, and meeting deadlines.

Tips to Make the Process Easier

  • Use online portals to search for a unique name and apply for PAN and TAN: Use online portals to look for a distinctive name and apply for PAN and TAN to make the process simpler. It expedites the application process, improves convenience, and saves time.
  • The process of creating and submitting the Partnership Deed can be made much simpler by enlisting the help of a lawyer or chartered accountant. They can successfully lead you through the registration process and know to guarantee the paperwork is legally sound.
  • Before applying for registration, have all required paperwork on hand to prevent delays and guarantee a quick procedure.
  • To stay informed and take immediate action on any potential concerns, check in frequently with the Registrar of Firms about the status of your application.

Conclusion

In conclusion, it is crucial to follow the correct procedures and obtain the relevant permits and registrations when setting up a partnership firm in India. The procedure can be made simpler and more effective by employing online portals, contacting experts, and maintaining organization. When it comes to registration, Kanakkupillai is a dependable partner who can offer knowledgeable direction and assistance. This ensures that all legal requirements are met and supports the growth of your partnership firm.

FAQ on steps involved in registering a partnership

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Kanakkupillai

Kanakkupillai is your reliable partner for every step of your business journey in India. We offer reasonable and expert assistance to ensure legal compliance, covering business registration, tax compliance, accounting and bookkeeping, and intellectual property protection. Let us help you navigate the complex legal and regulatory requirements so you can focus on growing your business. Contact us today to learn more.