Partnership Company Registration

What is a Partnership Firm?

The need for partnership form or organization arose from sole proprietor­ship and joint firm limitations. With the expansion of business, it became necessary for a group of people to join hands together and supply the necessary capital and skill. A person may possess the exceptional business ability but no capital; he can have a financing partner. 

Section 4 of the Indian Partnership Act of 1932 defines partnership as “the relation between a person who has agreed to share profits of a business carried on by all or any of them acting for all.”

Partnership Firm Registration.

A partnership is an association of two or more persons to carry on a business in a co-owner capacity. Each such person is called a partner. We make sure your Partnership Firm registration in Lucknow is obtained without any hassle and in a regulated manner.All the partners share the profits and losses in the proportion of their respective owners or as agreed. The amount of money that a partnership firm can commit is much more significant. This is possible because each partner can bring in a part of the total amount of capital required rather than only one person arranging the money.

“Partnership is the relation which subsists between persons, who have agreed to combine their property, labor or skill in some business and share the profits thereof between them” -Indian Contract Act, 1872. 

“It is the relation between persons who have agreed to share the profits of a business carried on by all or anyone acting for all.” – Section 4 of Indian Partnership Act, 1932.

Documents required for partnership firm registration:

To have Partnership firm registration in Lucknow, you have to submit the following required documents:

• Photograph of all the Partners
• PAN Card of all the Partners
• ID Proof of all the Partners (Driving License/Passport/Voter ID)
• Electricity Bill or any other utility bill for the address proof of the Registered Office
• Partnership Deed
• Authorization Letter
• Email ID Of the Partners
• Mobile Number Of the partners 

Advantages of Partnership Firm Registration:

1. Ease of Formation
2.  Flexibility of Operations
3.  Greater Financial Resources
4.  Greater Managerial Resources
5.  Greater Creditworthiness
6. Balanced Judgment
7.  Specialization
8. Maintenance of Secrecy
9. Personal Contact with Staff and Customers
10. Economies in Management
11. Conservative Management
12.  Protection of Minority Interest
13.  The incentive to work hard
14.  Risk Reduction
15.  Greater Scope for Expansion
16. Easy Dissolution
17.  Taxation

Suitability of Partnership Form of Business:

The sole proprietorship is suitable for relatively small businesses, requires small amounts of capital, risks ate not high, and decision-making needs to be quick. However, as the size of the business grows, the company needs different types of skill sets to carry out its various functions.

 It needs more capital, and multiple things need to be done simultaneously. For example, customers need to be attended to, and at the same time, a bank loan may have to be negotiated. Thus, as enterprises grow large, a Partnership form of business might be more suitable for small and medium-sized enterprises. The partnership form of business has its advantages and disadvantages. However, running a small business is often the most convenient form. Here is through identifying the suitability of Partnership Firm registration in Lucknow we have been able to develop a smooth and transparent process.

Some such instances are listed below:

• In the case of businesses where the capital requirement is medium, i.e., it is neither too large nor too small. Partners can successfully start businesses like retail and wholesale trade or small manufacturing units.
• Businesses that need different abilities, managerial talent, skills, and expertise are best run in Partnership mode. For example, companies such as Construction, Legal firms, etc. prefer Partnerships where each partner contributes the best per his specialization.
• Family Businesses are best organized as partnerships wherein Husbands and Wives, Parents and Children, and Brothers and Sisters can become partners in a firm.
• Businesses requiring flexibility in operations and avoiding detailed compliance requirements prefer a Partnership form of business.

Formation of Partnership – Partnership Deed:

A Partnership is formed by two or more persons agreeing to conduct business. This agreement may be oral or in writing. However, it is always preferable to have the agreement in writing, so that possibility of any misunderstanding in the future is avoided. If all essential terms and conditions regarding the partnership business are agreed upon, put in writing, and signed by all partners, such agreement is called a ‘Partnership Deed.’

The terms and conditions contained in the Partnership Deed are called Articles of Partnership. Partnership Deed mainly contains details regarding internal management and relations with external parties such as debtors and creditors. It should be properly stamped as per the provisions of the Indian Stamp Act, signed by all parties, and all the partners should keep a copy of the Deed.

Partners’ rights, duties, and liabilities can be inferred from the ‘Partnership Deed.’ Only when the ‘Partnership Deed’ is silent in respect of any issue the provisions of the Partnership Act are involved.

Contents included in the Partnership Firm Registration:

The following aspects are typically covered in the partnership deed:

• Name of the firm
• Names, addresses, qualifications, and occupations of partners.
• Nature and Scope of Business proposed to be carried on by the firm.
• Objects of the firm. (The word “Objects” is used to mean “objectives” or purpose.)
• Duration of Partnership, if any.
• The place where business is proposed to be carried on.
• Amount of capital to be contributed by each partner.
• The amount that a partner can withdraw from the company.
• The rate of interest that shall be payable to partners on their capital.
• The extent to which each of the partners would be involved in the day-to-day management of the business
• The rate of interest that shall be charged to partners on withdrawal of capital from the company.
• The ratio in which partners shall share the profits or losses.
• The amount of salary or commission payable to any partner for services rendered to the firm.
• Allocation of responsibilities of business amongst various partners.
• Maintenance of Books of Account of partnership firm
• Process for audit and Inspection of Accounting books by a partner.
• Matters about admission or retirement of a partner.
• The method of valuation of Goodwill at the time of admission/retirement of partners.
• The process of evaluating assets and liabilities on admission retirement or death of a partner.
• Loans and Advances are given to the firm by the partners, and the rate of interest shall be payable.
• The procedure of Dissolution of the firm and mode of settlement of accounts after Dissolution.
• Arbitration clause for settlement of disputes, if any, between partners.
• The conditions for the expulsion of a partner and procedure for removal.
• Arrangement in case of insolvency of a partner.
• The rights, duties, and obligations of partners.
• Operation of Bank Accounts and authority for signing cheques and other documents.
• Any other clauses that may be desired by the partners to be included in the Deed.

Here we have been able to provide you with the ideal process and procedure required in the Partnership Firm registration in Lucknow, that is available to all our clients. Our ideal way of functioning is independent solicitation and idealistic creation of the firm.

Why Choose Business Buddy Solutions?

• We provide transparent pricing and affordable rates. 
• We dedicate our earnest work to your services and make sure to deliver world-class efforts. 
• We maintain the privacy of your information and respect your limits and boundaries. 
• We also make sure the legalities of your registration process remain constant and proceed without any difficulties.