INCORPORATION OF PARTNERSHIP FIRM
Introduction
The law on Indian partnership companies is set out in the Indian Partnership Act of 1932. This law sets out the rights and obligations of partners and other legal relationships between partners and third parties involved in the formation of partnerships. Therefore, the law establishes a partnership position of a partner with third parties in the legal and contractual relationships that arise from the activities of the partnership. In this article, we will take a closer look at various aspects of running a partnership company in India.
Partnership deed is a document that sets out the rights and obligations of each partner and must be done in writing, not verbal, in order to be valid. The terms of the partnership deed can be modified in the interests of the partner and may violate the Indian Partnership Act of 1932, but if the partnership certificate is silent in any respect, the law The rules apply.
Why Should You Choose a partnership firm?
- Forming a partnership is easy compared to other forms of business. Partnerships can be established by creating a company certificate and concluding the articles of incorporation. No documents other than the articles of incorporation are required. It doesn't even have to register with the company's registrar. Registration is voluntary and not mandatory, so partnerships can be incorporated and registered later.
- Partnerships have few regulations to comply with compared to companies and LLPs. Partners do not require a digital signature certificate (DSC), director identification number (DIN). This is required for LLP corporate directors or designated partners. Partners can easily implement business changes. They have legal restrictions on their activities. It is cheaper than companies and LLPs, and the registration procedure is also cheaper. Dissolving a partnership is easy and requires few legal proceedings.
- Under partnership decision-making process is quick because there is no difference between ownership and management. All decisions are made jointly by partners and can be implemented immediately. Partners have a wide range of powers and activities that they can perform on behalf of the company. You can also make certain transactions on behalf of a partner company without the consent of other partners.
Documents Required for Partnership firm
PAN Card
PAN Card of Partners.
Foreign nationals must provide a valid passport.
Photograph
Latest Passport size photograph of Partners.
Identity Proof
Aadhar card and Voter ID/ Passport/ Driving License of Partners.
Partner’s Address Proof
Latest Electricity Bill/ Telephone Bill / Bank Account Statement of Partners.
Business Address Proof
Latest Electricity Bill/ Telephone Bill and Rent agreement of the registered office address.
Note
In case of NRI or Foreign National, documents of Partners must be notarized or apostilled.