Overview of Partnership Firm
A partnership firm is one of the most important forms of a business organization. It is a popular form of business structure in India. A minimum of two persons are required to establish a partnership firm. A partnership firm is where two or more persons come together to establish a business and divide its profits amongst themselves in the agreed ratio. The partnership business includes any kind of trade, occupation and profession.
The Indian Partnership Act, 1932 governs and regulates partnership firms in India. The persons who come together to form the partnership firm are knowns as partners. The partnership firm is constituted under a contract between the partners. The contract between the partners is known as a partnership deed which regulates the relationship among the partners and also between the partners and the partnership firm.
Eligibility criteria for Partnership Firm in India
- Minimum two people required for LLP incorporation: Without at least two individuals, a limited liability partnership firm cannot be constituted.
- No minimum capital requirement: There is no minimum capital requirement to obtain the Limited Liability partnership certificate. However, you can’t set it to zero as some amount is required for the drafting of the stamp paper.
- At least one designated partner of LLP should be from India: An LLP is an Indian business entity. Thus, a new LLP registration is only possible if at least one of the partners is from India.
- To register an LLP, you must give it a unique name: Uniqueness of name is a factor that you cannot ignore when it comes to the formation of Limited Liability partnership. Consult with experts to determine the best name for your firm so that you can register LLP online.
Documents required to obtain an Partnership Firm
- Copy of PAN Card
- Identity Proof (Voter Card, Passport, Driving Licence)
- Address Proof (Bank Statement, Mobile bill, Telephone bill, Electricity Bill)
- Passport Size Photo
- DPIN (Designated Partner Identification Number
- DSC: Digital Signature Certificate
- For Registered Office
- Ownership Proof (Electricity Bill, Gas bill, Electricity Bill, Mobile Bill)
- NOC
Note: Your registered office need not be a commercial space; it can be your residence too.
FAQs About Partnership Firm?
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