Partnership
A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors. With the introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership.
Reasons to Register a Partnership
Proprietorship needs minimal registration.Therefore,it is one of the easiest form of business entity to start with minimal formalities.However,after starting up a Proprietorship,it is relatively harder to open a bank account.since more registrations like VAT or Service Tax or GST Registration may be required.
Since the name of a proprietorship is not registered,a proprietorship can choose to have any name – as long as it does not infringe on a registered trademark.However, since the name is not registered,any other person can also use the same business name unless trademark registration is obtained.
In a Partnership firm, the partnership deed will determine the ownership of the firm, However, If the profit sharing ratio, rights and responsibilities of each of the Partner. A partnership deed can be registered with the Registrar.
A Partnership firm is not required to file its annual accounts with the Registrar each year unlike a Limited Liability Partnership. Limited Liability Partnership’s and Company’s are required to file their annual accounts with Registrar of Companies.
Bank account can be opened in the name of a Partnership firm. To open bank account, the partnership deed copy and KYC documents of the Partner must be submitted along with any other document as required by the Bank.
Documents Required for Proprietorship Registration
Identity and Address Proof
Identity and address proof will be required for all directors and shareholders of the company to be incorporated. In case of Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarised copy of passport must be submitted mandatorily. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.
Registered Office Proof
All companies must have a registered office in India. To prove access to the registered office, a recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.