02
Mar

How to start a partnership firm in India

If you want to open a firm In India, you have a variety of entities to choose from, you can setup firm in India in a private limited company, sole proprietorship, or a partnership firm depending upon your business objectives, capital pool, and other factors.

Partnership Firms are one of the most prominent structures of business organizations in India for the Partners Entrepreneurs. It requires a minimum of 2 people to open a firm in india.

The procedure of setting up a partnership firm in India starts from choosing the name of the same. Under the Indian Partnership Act, 1932 it is not authorized to choose a name which in any form identical to the other business company, under section 58(3) of the act you can’t assign names such as  Crown, Emperor, Empress, Empire, or words implying the sanction, approval or patronage of Government except when the State Government extend its approval in writing for the use of such words as part of your company’s name.

After choosing an appropriate name, drafting the partnership deed is the other necessary step. Every business had a different partnership deed depending on the terms and conditions but general details like name and the address of the firms and its respective partners, date when the business will be started, capital being invested by each partner, structure of the business, sharing of profit and loss among the partners are essential to provide.

On the legal ground, you are supposed to get your partnership deed to be signed by each partner and then printed on stamp paper worth Rs. 2000. This is done to finalize the deed in the proper format and the copies of this will stay with each partner for the record. 

Further, the Documents which are important for Partnership Deed Registration are PAN card of partners as identity proof, address proof of partners, PAN card of the firm( filled online by applying for form 49 A), address proof of the firm.

An affidavit is needed to certify that all the information quoted in the deed and documents are correct.

GST Registration is the other significant step for setting up a business firm in India followed by opening a current bank account.

Filling the Registration Application is optional under the provisions ofthe partnership act, 1932. If you opt for it, you need to provide basic information and each partner should sign the application in front of the notary. It should be submitted to the Registrar of Firms and Registrar of Companies with the required fees and stamp duty. 

After reviewing your application and documents, the registrar will mail the official registration certificate to your business mail address.

After you receive the certificate, your partnership firm will be authorized to all the advantages of that of the  Registered Partnership firm.

It’s significant to take guidance from a professional consultant if you want no sort of error while setting up a partnership firm in India. At DBPL, we help you to open a company in India. We take care of legalities encompassed while helping you in opening a business in India.