What is a Partnership Firm?#
A partnership is a business structure where two or more persons run a business together under an agreement.
Types of Partnership#
Registered Partnership#
- Registered with ROC
- Can sue partners
- More legal protection
Unregistered Partnership#
- No registration required
- Cannot sue in court
- Limited legal remedies
Partnership Deed#
Key contents:
- Firm name
- Partners' details
- Business address
- Profit sharing ratio
- Capital contribution
- Duties of partners
- Admission/retirement terms
- Dissolution terms
Registration Process#
- Prepare partnership deed
- Get stamp duty paid
- Apply to ROC
- Submit required documents
- Get certificate of registration
Documents Required#
- Partnership deed (stamped)
- Application form
- Partners' ID proofs
- Address proof
- NOC from owner
Tax Implications#
- Firm pays tax at 30%
- Partners taxed on drawings
- No separate GST registration if turnover < 20L
Cost#
- Stamp duty: 0.5-1% of capital
- Registration fee: Rs 500-1,000
- Professional fees: Rs 2,000-5,000