Partnership business is most common business form and also easy to build as no complex formalities are required. Partnership in business offers you a number of advantages. Here we are explaining some of them.
Documents required for partnership firm registration:-
Partnership Deed – Partnership deed is not require for a partnership firm, it can be made orally. But it is written to avoid any confusion in future. This deed is written on a stamp paper of Rs. 2,000/- and all partners have to sign on it. Rights of partners and activities of the firm are mentioned in partnership deed.
Documents of Partners – PAN card has to be submitted by all the partners to start the business. But PAN card is not used as address proof, so they have to submit Voter card, Aadhar card or Passport as address proof.
Documents of Firm – Partners have to fill-up the Form 49A to apply for PAN card of the firm. It can be filled via online by using Digital Signature Certificate. If your office place is your own, one utility bill like electricity or water bill and NOC of the owner have to be produced at the time of registration for the address proof of the firm. If the place is rented then the rent agreement will also be needed.
GST Registration – GST Registration is must for any type of firm either partnership or limited. Address proof, PAN number and ID proof of each partner for GST registration process. GST registration of a firm is important in every state of India. As an example, for partnership firm registration in Jaipur, partner need to do GST registration in Rajasthan.
Current Bank Account – Current bank account is needed to start a partnership firm. For opening a current bank account these documents are required- a firm needs to submit following documents:
- Partnership deed
- PAN card
- Address Proof of the firm
- Identity proofs of the partners
- GST certificate
- Authorization letter for authorizing a partner as authorized signatory for the account.
Benefits of Partnership Firm:- Before register your Company / business as Partnership Firm, let’s check benefits of Partnership firm .
Easy to start
Partnership firm does not require registration for taxation process. Partners can do online individual registration for self-assessment. But although it takes some time, an agreement must be done before starting a partnership business. The agreement should contain some important points like responsibility of partners, work process of the firm, sharing of profit and loss etc.
Less legal obligations
A partnership firm has fewer legal obstructions in comparison with a limited company. The accounting process is easy and does not need Tax Return Filling. But it is better to keep records of all expenses of your firm. Also each partner of the firm is free to leave the business any time. So, the business can be dissolved easily.
Sharing the burden
If you are new in business field then managing a firm alone can be hectic for you. In partnership firm you can share work load with your partner an also share your thoughts with each other.
Money is the main factor for a start-up business. The more partners you have, the more money will be invested. Borrowing capacity will also be greater.
Help for decision-making
When it comes to start-up business two heads are better than single. Together you can overcome from a tough situation easily. You can share your views with your partners that will help for better decision making.