Partnership/Sole Proprietorship

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PARTNERSHIP

Starting a Partnership Firm
A General Partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in the Partnership Deed. This structure is thought to have lost its relevance since the introduction of the Limited Liability Partnership (LLP) because its partners have unlimited liability, which means they are personally liable for the debts of the business. However, low costs, ease of setting up and minimal compliance requirement make it a sensible option for some, such as home businesses that are unlikely to take on any debt. Registration is optional for General Partnerships.
Advantages
Minimal Compliance
General Partnerships do not need to appoint an auditor or, if unregistered, even file annual accounts with the registrar. Annual compliances are also fewer as compared to an LLP. General Partnerships do need to file Income Taxes and, depending on turnover, service and sales tax.
Easy to Start
It can be started with just an unregistered Partnership Deed in 2 to 4 days; registration is, however, a wise choice. It would enable you to file suits in court against another firm or partners in the firm for the enforcement of rights arising from a contract or right given by the Partnership Act.
Relatively Inexpensive
A General Partnership is cheaper to start than an LLP and even over the long-term, thanks to the minimal compliance requirements, is inexpensive. You would not need to hire an auditor, for example. This is why, despite its severe shortcoming (unlimited liability), home businesses may opt for it.
Procedure
The General Partnership process is straightforward and, if you're prompt with your submissions, can be completed in five days. This is, however, dependent on a few things, such as whether or not you want your business registered and availability of stamp paper.
1. Partnership Deed Drafting
We will collect all the information regarding your business and its partners. The information will be used by our lawyers to draft a partnership deed covering the various aspects of the business on stamp paper (charged as per actuals). You will be given the chance to review the document. We can accommodate any modifications required. The soft copy will be ready in 2 days, but the original would take up to 10 days to reach you.
Time to Complete: 2 to 10 working days
2. Partnership Deed Registration (Optional)
We will appoint an affiliate to take you through the process. All the partners would need to go to the registrar's office and bring along a passport-sized photograph and identity and address proofs. The whole process takes only a day. If you do not wish to register the partnership deed, you can skip this step and move on to the next step.
Time to Complete: 1 working day
3. PAN & TAN Applications
Every partnership, registered or unregistered, needs a Permanent Account Number (PAN) and Tax Account Number (TAN). We will make the application online ourselves, but you will need to courier hard copies of the required documents yourself. You will receive the PAN and TAN at the address mentioned in the deed.
Time to Complete: 5 to 15 working days
4. PAN & TAN Applications
Every partnership, registered or unregistered, needs a Permanent Account Number (PAN) and Tax Account Number (TAN). We will make the application online ourselves, but you will need to courier hard copies of the required documents yourself. You will receive the PAN and TAN at the address mentioned in the deed.
Time to Complete: 7 working days

Partnership entity, which would include
(Selection of name, drafting of Partnership deed and issuance of PAN Card).

Then What is the Procedure for getting Partnership registered?
We can also assist you to get your partnership registered, please feel free to “Contact Us‘ for that, if you wish to.

How do I pay for your service?
We have the most secured and world renowned payment gateway of CC Avenue which accepts all credit cards, debit cards and Net-banking from all banks.

I have paid online, what next?
If you have ordered a service from our site by paying via CC Avenure payment gateway, we would send you a confirmation mail having  “check list for details required for the assignment” within 6 working hours after receiving the payment confirmation.
Alternatively after you make the payment, you can send us an email with your details / Query. We will revert back to you ASAP.

Is the fees quoted above is final or do I have to pay more?
The fees chart has been formulated based on frequent queries / responses received by us from our users and also based on the efforts required from our end to successfully answer these queries. Further, the fees quoted above are final in most of the cases. Wherein, we are of the view that the query/ case would require additional in-depth study and efforts, in that scenario we would intimate you via mail in advance.

My  Partnership is Incorporated,  Now What Next ?
We provide full fledged business maintenance and after incorporation services, which includes PAN Applications, Accounting Services, Taxation services, Local Registrations and other such related services. Please Visit our “Business Maintenance” segment on the home page to know more on this.

Can We/ I get consolidated service package, having more such services ?
Financemitra has the expertise in the field of ‘Business incorporation‘ and ‘Business Maintenance‘ services assisting many businesses / Corporates. We render full-fledged ‘Business Incorporation‘ services such as: Creation of Companies; Creation of LLPs;  Start-Up Counselling; and Other Registration services.
AND services under ‘ Business Maintenance‘ for ‘Corporate’ Assessees‘ and ‘Non- Corporate Assessees‘ includes: Accounting; Statutory and Tax Audits; Income Tax Services; Company Law Compliances;  and Other Related Services.
You can select the services you require and we can customise a service package suited best to your needs. Please feel free to “Contact Us” for this or for any other issue.
Do You Have Any Issues? Write to our CEO at ‘admin@dinancemitra.co.in’.

 

What is Partnership Firm in India?
A partnership is a business entity in which two or more persons agree to share the profits of a business carried on by all or any of them acting for all. Earnings are distributed according to the partnership agreement.

What is Partnership Agreement?
The agreement between the partners put down in writing forms the “Partnership Deed”. It is a document containing the various aspects agreed upon by the partners. Partnership deed is drawn to avoid misunderstanding and undesirable litigation.

When Partnership Agreement is required to be made?
There is no such fixed due date within which partnership agreement is required to be made. But, it is always advisable to prepare a “partnership deed” for forming a partnership firm.

What are the basic contents of a Partnership Agreement?
Partnership agreement must contain following-

  • Name and address of the partners and the firm
  • Nature and place of business
  • Duration of business, if any
  • Amount of capital contribution by each partner
  • Profit or loss sharing ratio
  • Duties and powers of each partner
  • Salary or commission payable to the partners, if any
  • Interest on Capital to the partners, if any; and
  • Any other terms and conditions to run the business

Whether it is mandatory to register a partnership firm?
It is not necessary to register partnership firm with the Government. However, if you do not register your partnership firm with the registrar of firms and societies, any disputes between partners or others cannot be enforced in a court of law.

What are the legal benefits of registering Partnership Firm?
Registration of Partnership Firm safeguards the legitimate rights and obligations of parties in case of disputes and disagreements. Registered firm can take any action in a court of law against any other parties for settlement of claims and the rights of partners can be enforced in the court of law.

Is there a limit on the number of partners in a partnership firm?
In partnership the maximum number of partners is twenty and in a banking business, the maximum number is ten. If the number of members exceeds this maximum limit, then that business is not called as a partnership business legally and it has to be registered as a company.

What is the procedure to register a partnership firm?
To register a partnership firm, at the very outset a partnership agreement has to be prepared then a statement in prescribed form giving details about the firms duly signed and verified by all the partners along with a partnership deed , supporting documents and registration fees is required to be submitted to the register of firms of a locality. The statement submitted to the registrar of the firms should contain all the information of the firm.
On receipt of the signed statement and requisite fees the registrar enter all these particulars in its register and get the firm registered.

What are the information and documents required to register a partnership firm?
A list of the information and documents required is enumerated below:

  • Photograph and photocopy of an Identity Proof, address proof of each of the partners,
  • Address Proof of Firm
  • Name of the firm
  • Nature of business
  • Bank account operation (single / joint)
  • Profit / loss sharing ratio of each partner.

Starting a Sole Proprietorship

A sole proprietorship is a business that is owned and managed by a single person. You could have one up and running within 10 days, which makes it very popular among the unorganised sector, particularly small traders and merchants. There is no such thing as registration; proprietorships are recognised by other registrations, such as a service or sales tax registration. As you would imagine with a business that's so easy to set up, though, its shortcomings are severe: the liability of the proprietor is unlimited and it does not have a continuous existence. For these reasons, it should only be considered by small merchants and traders.
Advantages
Minimal Compliance
Sole Proprietorships are only recognised via their government and tax registrations, so the extent of their compliance is limited to the annual filing of their service, professional or sales taxes.
Easy to Start
A sole proprietorship could take as few as seven days if all you need is a Service Tax Registration, but this would stretch to 30 days if you need Sales Tax Registration. Either way, the process is uncomplicated. PAN card and identity and address proofs are usually enough to get this done.
Relatively Inexpensive
A Sole Proprietorship is inexpensive as compared to a One Person Company and, thanks to the minimal compliance requirements, is inexpensive even over the long-term. You would not need to hire an auditor, for example. This is why, despite its severe shortcoming (unlimited liability), small merchants and traders opt for it.
Procedure
Proprietorship is recognised through one or more government registrations. Our representatives will advise you about the ones you will need based on the business you're in, and inform you of the documents you would need to provide in each case. Here is a snapshot of the process:
1. Select Registration
We will help you decide what registration you need, whether service tax, sales tax, import/export code, MSME registration or Shops and Establishments registration.
Time to Complete: Less than a day
2. Begin Procedure
Once you've decided what you want, we'll ask you for the documents we need to get started. In most cases, you would first need to provide address and identity proof as well as a scanned copy of a passport-sized photograph. Some registrations (Sales Tax, for example) involve an inspection by the concerned government agency. We will assist you throughout the process until you receive the required registration.
Time to Complete: Depends on selected service
3. Get a TAN
A proprietor would need a Tax Account Number (TAN) if he is going to pay salaries and rent. We will make the application online ourselves, but you will need to courier hard copies of the required documents yourself to the government office. You will receive the TAN at the registered address within 7 working days.
Time to Complete: 7 working days

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