Hassle-Free and Efficient Online Approach
Personalized Expert and Account Advisor
Personalized Guidance from Industry Experts
Features of Partnership
-
Agreement: A partnership is formed through an agreement, either written or oral, between two or more individuals.
-
Number of Partners: A partnership must have at least two partners, with the maximum limit varying by country.
-
Mutual Agency: Each partner acts as an agent for the firm and other partners, with the authority to make binding decisions on behalf of the partnership.
-
Profit Sharing: Partners agree to share profits and losses according to the partnership agreement.
-
Joint Ownership: Partners jointly own the business and its assets, holding them in common.
-
Unlimited Liability: Generally, partners have unlimited personal liability for the partnership's debts.
-
Common Goal: Partnerships are formed for the common purpose of earning profits.
-
Flexible Management: There is no statutory structure for managing a partnership; partners manage the firm as agreed.
-
No Separate Legal Entity: The partnership firm is not a separate legal entity from its partners (in most jurisdictions).
-
Shared Risk: Partners share risks, with losses and liabilities affecting all partners.
-
Mutual Trust: Partnership relies on trust and confidence among partners for decision-making.
-
Continuity: Partnerships can be dissolved by agreement, bankruptcy, death, or insolvency of a partner.
-
Capital Contribution: Partners contribute capital based on the partnership agreement, which can be monetary or non-monetary.
-
Limited Lifespan: Partnerships typically lack perpetual succession and may dissolve upon certain events affecting the partners.
-
Legal Formalities: Generally, fewer legal formalities are required compared to corporations, although registration may be needed.
-
Decision-Making Power: Decisions are typically made collectively, often requiring consensus or majority votes.
-
Transferability: A partner’s interest is not easily transferable; consent of other partners is usually required.
-
No Double Taxation: Partnerships are usually taxed once, at the individual partner level, avoiding double taxation.
-
Diverse Skills: Partnerships benefit from a diverse set of skills, knowledge, and resources from each partner.
-
Profit and Loss Sharing Ratio: The agreement specifies how profits and losses are divided among the partners, which can be equal or vary based on the terms.
Why Choose Private Limited Company
Advantages
-
Collaboration Tax advantages Simple operating structure Flexibility Acquisition of capital
Disadvantages
-
Conflict with partners Authority of partners Unlimited liability Vulnerability to death or departure Limitations on transfer of ownership
Who is Eligible?
-
Individual: A person who has the legal capacity to enter into a contract may join the partnership firm as a partner. An individual can be a partner in a company with more than two partners both as himself and as a representative known as Karta of the Hindu undivided family.
-
Firm: Because a partnership firm is not a person, it cannot form a partnership with another firm or person. Yet, a partner in a partnership firm is free to form a partnership with another individual and split the firm's profits with his other parent company partners.
-
Hindu Undivided Family: As long as the member has contributed their own effort and ability, a Karta of the Hindu undivided family may join a partnership in his or her individual capacity.
-
Company: If permitted to do so by its goals, a business may join a partnership firm registration as a partner because it is a juristic person.
-
Trustees: Unless its constitution or goals forbid it, trustees of private religious trusts, family trusts, Hindu mutts, and other religious endowments are legal persons and can thus form partnerships.
Document Required
-
To register a Private Limited Company, essential documents include identity proof and address proof of all directors and shareholders, such as Aadhar cards or passports. Here is a list of documents for the same :
-
Proof of Identity: PAN (self-attested copy of Pan card), Aadhar Card, Passport & Voter ID for Indian Nationals. This could be in the shape of a notarized passport if you are an outsider.
-
Proof of address: Not more than two months old mobile bill/electricity bill/corporate tax receipt/bank passbook.
-
Office documents: Business address proof, utility bills, lease/rent agreement, and NOC from landlord.
-
Memorandum of Association (MoA): It is a document that legally describes the purpose and states which part it plays in the operations of a firm.
-
Articles Of Association (AoA): The AoA of a company is its internal rule book, setting out how the company will be managed and controlled.
-
DIN of the director: Each and every director in a company ought to have DIN
-
Class 2 Digital Signature Certificate (DSC): It will be needed for the e-signing of incorporation documents and other filings with authorities.
-
Relevance: Business or activities done by the company
-
Legal Compliance: It should be proper in accordance with MCA guidelines and shall not have any banned words or phrases.
-
No Confusing Terms: One should not construct an incorrect or irrelevant impression about the events and relationships.
Step 1 :
Check the eligibility and documentation
Step 2 :
Request DSCs and DINs for each director
Step 3 :
Submit a request for a name reservation Form Spice+ for company incorporation
Step 4 :
Apply for PAN and TAN for your new business
Step 5 :
ROC issues an incorporation certificate with a PAN and TAN
Step 6 :
Open a bank account and start your business.
Steps in Registering a Private Limited Company
Why ComplyHub for Partnership Registration
We provide access to top incorporation experts who will guide you through the complexities of sole proprietorship registration. Our professionals will coordinate with you to fulfil all your legal requirements. You can also track the progress on our online platform at all times. Our team will handle all the paperwork and ensure a seamless, interactive process with the government. We provide clarity on the incorporation process to set realistic expectations. With a team of over 300 experienced business advisors and legal professionals, you are just a phone call away from the best in legal services.
Call us at : +91 98186 10979 Email us at : info@complyhubindia.com