A partnership firm is usually formed by two or more persons to carry on a business legally. The firm is registered under a partnership deed by “partners” and the business members are called to share the profits or losses of the business. The business can be conducted by all partners or by just one of them on behalf of all the rest. The partners of the business get into the business by forming the partnership deed along with the legal document laying down the guidelines for conducting the business and other details pertaining to the business and its formation. It also outlines the capital contributions by each partner and the proportion in which they have shared the revenue or loss to the company. The partners of this partnership firm are bound by the deed and non-compliance with it is considered going against the interest of the business and other partners.
All partnership firms fall under the governance of the Indian Partnership Act 1932 section 4. Mibook guides you and the partners on how all can be a part of incorporation like this and assists on how to oblige with all the legal Pvt ltd registration in Bangalore, gst filing in Bangalore, and accounting and bookkeeping services in Bangalore.
The minimum number of people required for partnership firm registration is two, the maximum being twenty for non-banking ventures and ten for banking institutions. A partnership deed registered in India relies to a large extent on the trust and compatibility which prevails among the partners, hence it is absolutely necessary that the partners are genuine with each other before venturing into the business. Unlike limited liability ventures, the partners here have unlimited liability ventures and are not responsible for each other’s misconduct or misdemeanours, in a partnership firm the management includes one and each partner and is responsible for himself as well as for others in the firm. If there is a need to transfer shares from one partner to the other, all the other existing partners need to give their consent for the same before the transfer is carried out. The partners also have a principal-agent relationship. When one is conducting an important business activity, he/she becomes the agent and the other principal. Similarly, when any other partner acts on behalf of the other, that individual becomes the agent and the others become principals.
At Mibook we provide efficient services for partnership deed registration in India. We make sure that a firm registered as a partnership in India must meet all the norms and regulations imposed by the legal authorities which will enable a company to sustain itself for a longer period even in case of any unforeseen circumstances.
In India, there are 3 types of partnership deeds that can be registered which are as follows
Unregistered Partnership Deed
Partnership Registered with Registrar of Firm
Limited Liability Partnership
Easy to Form & Dissolve: A partnership firm registration in Bangalore is incorporated easily by the partners by simply putting the conditions of the partnership in the partnership deed and getting it notarized. It is not necessary to register the partnership deed. Similarly, it is quite easy to dissolve the operations of a partnership firm as compared to other business forms
Unlimited Liability of Partners: Each and every partner under partnership deed registration in Karnataka is jointly as well as severely liable for the acts of other partners. In case of losses, the partners are liable to contribute the same out of their personal assets. With the assistance of our expert in Mibook, you can get the estimated liability of each and every partner.
Lesser Compliance: The partnership firm registration in Bangalore is not compulsory under any law. As such, the operational and statutory compliances in relation to a partnership are lesser as compared to LLP and companies. Even if a partnership firm needs to be registered Mibook handles the whole process which allows partners to focus more on the productivity of the business.
As mentioned above, the partnership deed registration in Karnataka is quite hassle-free as there are no extensive formalities involved like other types of companies and also with the full support of Mibook, the partnership firm registration office in Bangalore the procedure of registration can get a lot easier.
The partnership firm can use any name other than a registered trademark name. Since the business is not registered in its name but in the name of the partners it can use any name it wishes to. This means that several partnership firms registered can have the same or similar names without getting into any legal trouble.
A partnership firm is not required to file its books of accounts with the partnership firm registration office in Bangalore or Registrar of Companies every financial year unlike an LLP or a Pvt. Ltd. venture. However, it is advisable that the partners maintain records of financial transactions clearly and take the help of expert accountants of Mibook to do so. This will make sure that the finances are being used optimally without the scope of mismanaged funds.
In the case of a partnership registration in Bangalore, the partnership deed is the supreme document that lays down the rules for the company. It defines the proportion of profit sharing, ownership rights, and duties of the firm’s partners. Mibook guides the members of the firm to file the partnership deed properly without any flaw.
A registered partnership deed can have an account in the bank in its own name. The partners need to submit the deed, KYC compliance, and other necessary documents to the bank. This will ensure that financial transactions are kept separate from personal ones and that financial records are easily maintained.
1. PAN Card
2. Voter Id / Aadhaar Card
3. Driving License / Passport
4. Latest Bank Statement / Mobile Bill
5. Passport Size Photograph
1. Rental Agreement (In English)
2. No Objection Certificate
3. Electricity Bill
4. Sale Deed / Property Deed
5. Tax Paid Receipt ( In case of own property )
Name Selection: - The name of the firm should not be identical or similar to the name of already registered firms. The name should not contain any words which reflect state patronage.
Partnership Deed Drafting
Submission of application for registration with Registrar of Firms (ROF) with necessary forms and prescribed fees:- (a) Application in Form-1
(b) Duly filled specimen of affidavit
(c) Certified original partnership deed
(d) Proof of address of firm (Lease deed/ Rent deed if rented or copy of registry if owned)
Scrutinising of the documents by ROF
Issuance of Registration Certificate
Doing a partnership deed registration in Bangalore is one of the easiest registration of a firm. The only requirement for starting a partnership firm in most cases is a partnership deed. A partnership firm can be started on the same day the partnership deed is written with the help of Mibook. On the other hand, an LLP registration would take about 5 to 10 working days as the digital signatures, DIN, Name Approval, and Incorporation need to be obtained.
Decision-making is the crux of any organisation. Decision-making in a partnership firm could be faster as there is no concept of the passing of resolutions. The partners of registered partnership firms under the supervision of Mibook enjoy a wide range of powers and in most cases can undertake any transaction on behalf of the partnership business without the consent of other partners.
When compared to a proprietorship firm, a registered partnership firm can easily raise funds. The involvement of multiple members makes it more feasible to avail the heavy funds from the financial institutions. Moreover, banks also view a partnership more favorably while sanctioning credit facilities instead of a proprietorship firm. Mibook suggests the best way possible to raise funds.
Every partner owns and manages the activities as per the well-written partnership deed through Mibook. Their tasks might be varied in nature but people in a partnership firm are united for a common cause. Ownership creates a higher sense of accountability which paves the way for a diligent workforce.