Advantages of Partnership Registration
There are numerous advantages that a company or firm enjoys after Partnership Registration. They are as follows-
1. Increased Credibility- In comparison to a non- registered Partnership Firm, a Partnership Firm that has effectively finished the Online Registration of Partnership Firm gets greater credibility. Despite the fact that, both registered and non- registered Partnership Firms are legitimately substantial under the given Act Indian Partnership Act, 1932, the Registered Firm is profoundly recommended in the long run.
2. Ease in taking legal actions- If any conflict has occurred regarding business or any other issue, the authorised partners of a Partnership Firm which is registered can file a case against any third party to get it resolved.
One should also be aware that until the Partnership Deed registration process is finished, any non- registered Partnership company loses the right to launch a lawsuit against the third party to solve any problems.
3. Simple Business Structure- Partnership Firms are one of the most straightforward business structures to establish. It requires only the creation of a partnership deed and Partnership Firm registration. Thus, it can begin when the partners are ready and with minimal documentation, while other business structures require at least 1-2 weeks to complete all of the necessary requirements, such as acquiring a DSC and DPIN name permission, etc.
4. Possibility of Claiming a Set Off- The partners have the ability to demand set-off after obtaining the Partnership Deed registration. In case there is any dispute against a third party, Partnership Firm can guarantee the set-off when any third party brings a lawsuit against the registered Partnership Firm. This specific force of guarantee set-off isn't accessible when the Partnership Firm is not registered under the Act, Indian Partnership Act, 1932.
5. Convenience in Management- As stated in the partnership agreement, all partners are provided certain tasks and obligations based on their abilities. Any form of issue between or among the partners can be avoided keeping in eye the terms and conditions stated in partnership agreement.
6. Ease in Decision Making- Decision making in a Partnership Firm registration is faster and hassle free because it is not confined by any rules and regulations. A partner can act on behalf of the firm without the permission of the other authorised partners.
7. Collection of Funds- In comparison to other types of businesses, for example Proprietorships, a Partnership Firm can readily raise financing. The partners might make a more practical contribution. It's worth noting that banks prefer a partnership firm when it comes to approving loans and other financial assists.
8. Easy Entity Conversion- The transformation of a registered Partnership Firm into another entity, like a Limited Liability Partnership or Private Company, which is extensively referred to as the corporate structure, is effortlessly convertible.
Necessary Documents for Partnership Registration
Partnership registration requires some documents to be submitted by the partners like Partnership Deed, GST Registration, Office Address Proof, PAN Card of Firm and Partners, Address Proof of Authorised Partners and Current Bank Account with an affidavit having detailed information stating all the above deeds and documents are legal and correct.
• Deed of Partnership- A type of contract between partners that specifies their rules, methodology, responsibilities, functions and shares is called partnership deed. It aids in the prevention of future conflicts and disagreements between the partners. It is written on a Judicial Stamp Paper, which costs about Rs. 2000/- and must be signed by each and every member.
• GST Registration- In order to receive GST registration, the firm must submit its address proof, PAN Card Number, evidence of address and the partners' identity. The application will be signed by an authorised signatory using either E-Aadhar verification Or DSC.
• Proof of Office Address- Office Address Proof must be submitted of the working place. If the office place is rented, rent agreement and utility bill (water, electricity, gas, etc) must be produced by the applicant along with No Objection Certificate (NOC) signed by the landlord. In case, any of the partners own the property, NOC also needs to be produced with utility bill.
• Firm's PAN Card- The firm's assigned partners are required to apply for PAN card of the firm. By filling up the form number 49A, the partners can get firm's own PAN card. For online form fill up, they must visit the given below link- https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
If the authorised partner signs the application with a DSC, it can also be submitted online. Furthermore, the application, along with the required documentation, must be forwarded to one of the country's PAN processing facilities.
• PAN Card of Partners- Every partner must submit their PAN Card as their identity proof.
• Address Proof of Authorised Partners- Each and every partner must submit a copy of Aadhar Card, Voter ID Card, Driving Licence, Ration Card, etc as address proof. The mentioned address should be similar with the PAN Card address.
• Company's Current Bank Account- For the purpose of opening a current bank account of the firm, the applicant must submit the following documents:
1. Address proof of the company or firm
2. PAN Card of the company or firm
3. Partnership Deed
4. Copy of bills of water, electricity, telephone (must be of 3 months or less)
5. Any Government Certified document like GST registration
6. Identity proof of the partners of the firm
7. Signature of the authorised signatory for the bank account confirmed on the letterhead of the Partnership Firm
8. Certificate of Partnership Registration ( if available)
Necessary Documents for Partnership Registration
Partnership registration requires some documents to be submitted by the partners like Partnership Deed, GST Registration, Office Address Proof, PAN Card of Firm and Partners, Address Proof of Authorised Partners and Current Bank Account with an affidavit having detailed information stating all the above deeds and documents are legal and correct.
• Deed of Partnership- A type of contract between partners that specifies their rules, methodology, responsibilities, functions and shares is called partnership deed. It aids in the prevention of future conflicts and disagreements between the partners. It is written on a Judicial Stamp Paper, which costs about Rs. 2000/- and must be signed by each and every member.
• GST Registration- In order to receive GST registration, the firm must submit its address proof, PAN Card Number, evidence of address and the partners' identity. The application will be signed by an authorised signatory using either E-Aadhar verification Or DSC.
• Proof of Office Address- Office Address Proof must be submitted of the working place. If the office place is rented, rent agreement and utility bill (water, electricity, gas, etc) must be produced by the applicant along with No Objection Certificate (NOC) signed by the landlord. In case, any of the partners own the property, NOC also needs to be produced with utility bill.
• Firm's PAN Card- The firm's assigned partners are required to apply for PAN card of the firm. By filling up the form number 49A, the partners can get firm's own PAN card. For online form fill up, they must visit the given below link- https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
If the authorised partner signs the application with a DSC, it can also be submitted online. Furthermore, the application, along with the required documentation, must be forwarded to one of the country's PAN processing facilities.
• PAN Card of Partners- Every partner must submit their PAN Card as their identity proof.
• Address Proof of Authorised Partners- Each and every partner must submit a copy of Aadhar Card, Voter ID Card, Driving Licence, Ration Card, etc as address proof. The mentioned address should be similar with the PAN Card address.
• Company's Current Bank Account- For the purpose of opening a current bank account of the firm, the applicant must submit the following documents:
1. Address proof of the company or firm
2. PAN Card of the company or firm
3. Partnership Deed
4. Copy of bills of water, electricity, telephone (must be of 3 months or less)
5. Any Government Certified document like GST registration
6. Identity proof of the partners of the firm
7. Signature of the authorised signatory for the bank account confirmed on the letterhead of the Partnership Firm
8. Certificate of Partnership Registration ( if available)
