Partnership registration means the registration of the partnership firm by its partners with the Registrar of Firms. The partners should register their firm with the Registrar of Firms of the state where the firm is located. It is to be noted that partnership firm registration is not compulsory, the partners can apply for registration of the partnership firm either at the formation of the firm or subsequently at any time during its operation by executing a Partnership Agreement.
A partnership is a relationship between individuals who have agreed to start a business on the grounds of mutual understanding, wherein the liability, role, and responsibilities of each individual may differ. Therefore, a partnership consists of three essential elements.
Our expert team shall create partnership deed as it is an agreement between the partners in which rights, duties, profits shares and other obligations of each partner is mentioned. A partnership deed can be written or oral, although it is always advisable to get a partnership deed to avoid any conflicts in the future.
Note- The firm’s registration can be done at the time of its formation or incorporation or during the continuance of the partnership business.
Features | Proprietorship | OPC | |||
Number of Person | One person | Two or more | Two or more | Two or more | One person and one nominee |
Designation | Proprietor | Partner | Designated Partner | Director | Director |
Name | As it is | As it is | Ends with LLP | Ends with Private Limited | Ends with OPC Private Limited |
Registration | Shops and Establishment | Registrar of Firms | Registrar of Companies | Registrar of Companies | Registrar of Companies |
Capital | No Minimum | No Minimum | No Minimum | No Minimum | No Minimum |
Legal Status | Not a Separate Entity | Not a Separate Entity | Separate Entity | Separate Entity | Separate Entity |
Liability | Unlimited | Unlimited | Limited | Limited | Limited |
Audit | If turnover above 1 crore | If turnover above 1 crore | If contribution above 25 lakhs or turnover above 40 lakhs | Compulsory | Compulsory |
Compliance | Least | More than proprietorship | More than partnership, less than company | Most | Less than Company |
Filing of resolution | No | No | No | Yes | Yes |
Taxability | Less | Less | 30%+surcharge +cess | 30%+surcharge +cess Distribution of profits taxed | Comparatively More |
Meetings | Not mandatory | Not mandatory | Not mandatory | Mandatory | Mandatory |
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