A partnership is governed by a partnership deed, which must be a written document duly signed by all the partners. The deed fulfills the requirement of disseminating information about the firm—name, partners’ details, nature of the business, location of the business and others. Without much hassle to accumulate a minimum capital, two or more people can start a partnership firm, as there is no minimum capital requirement under the Act.
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*Partnership Deed + Firm PAN Rs. 4999/-
*Trademark Filing Rs. 7399/-
*Outsource Accounts and GST Rs. 23999/- annually
Stamp paper charges will be added as per the respective state.
Documents Required
- PAN Card of Partners
- Aadhar Card of Partners
- Business Name and Address Proof
- Passport size Photograph of Partners
Key Features of a Partnership Firm:
- A partnership firm can have a minimum of two and maximum of hundred members, according to the Companies Act, 2013.
- A registered firm is also required to use ‘(Registered)’ after the firm name
- Increased manpower often leads to integration of specialised skills and abilities that could help in rapid growth
- A partnership firm, unlike a company, has no separate legal entity, except if the type of partnership is a Limited Liability Partnership
- Each partner in a partnership firm has unlimited liability, but a Limited Liability Partnership (LLP) removes this shackle and limits the obligations of a partner
- There is no minimum capital requirement for commencing a partnership firm
- A partner is restricted from transferring his/her profits or rights entailing the partnership without the consent of all partners
- In either case, a partnership firm is registered or unregistered under the Act, and third parties can sue the firm to enforce their claim
- A registered firm, which is mandated to comply with the legal and taxation documentation, has an added advantage when it approaches banks for capital or working capital loans
Difference between Partnership Firm and LLP
Below mentioned are the major differences between a Partnership firm and LLP:
| Category | Partnership Firm | Limited Liability Partnership (LLP) | ||||||
| Liability | Partners are personally liable for the unlimited amount of liabilities of the partnership | Liability of the partners is limited to the amount invested in the company | ||||||
| Partners | Minimum 2 and maximum 20 partners can be the member of the partnership firm. Minor can be a partner | Minimum 2 and no upper limit for maximum number of partners in LLP. | ||||||
| No minor can be partner | ||||||||
Registra- | Registered under LLP Act, 2008 | Registered under Partnership Act, 1932 | ||||||
| Register- ed To | Registrar of Firms | Ministry of Corporate Affairs | ||||||