Registered Partnership Firm in Pune

A registered partnership firm is formed by two or more persons who share capital investment, profit and loss in the business, as per the terms and conditions laid down in a partnership deed. A partnership arises due to a contract and not from status. The partnership deed lays down rules and regulations according to section 4 of the Indian Partnership Act 1932, duly signed by the concerned partners.

Azalea Advisors is a leader in providing services to form a Registered Partnership Firm in Pune, India. It gives effortless partnership business formation services in Pune with zero compliance requirements.

Easy Formation

A partnership is preferred by small and medium-scale business houses due to the ease of its formation within a few days or probably the same day in some cases. The following documents are required to register a partnership firm:-

1. Partnership deed is an agreement that expresses the existence of partnership relations among the concerned persons called partners. It comprises of

• Agreed name of the partnership firm to be registered
• The firm’s name does not include the suffix company or Private limited company.
• Mention the type of business activity carried on
• Date of commencement of the business
• Address of main branch or branch office ( if any)
• Capital contribution of the partners
• Profit sharing ratio of the partners
• Salary of active partners
• Interest on investments made by partners and their drawings should be as per the provisions under the Indian Partnership Act 1932.
• Terms and conditions while dissolving the partnership firm
• Problem-solving and arbitration process to be accepted

2. Identity proof of partners is required during the registration process, like an Aadhaar card, address proof, PAN, driving licence, etc.

Zero Compliance requirements

• Fewer compliance requirements are needed to register a partnership firm.
• A partnership firm is not a separate legal entity.
• The number of members in a partnership firm running a business other than banking is limited to 50.
• There is no minimum requirement of capital to start a partnership.
• No need to file annual returns with the Registrar.
• Statutory audits and board meetings are not mandatory.
• Partnership deeds can be easily updated, and the Registrar of Firms must be informed about such changes.
• It can be easily converted into a Private limited company or an LLP.
• It can claim tax benefits under the provisions of the Income Tax Act.

Flexibility of Operations

The flexibility of business operations and prompt decision making is the crux of a successful business. In a partnership firm, there are no stringent rules. The deed can be updated with mutual consent among the partners to adapt to the ever-changing market. The partners can easily decide on the division of work, profit sharing, and decision-making processes to ensure greater agility in adapting to market fluctuations. Moreover, all the partners in the firm can participate in management control. The firm is dissolved in the event of the death or insolvency of a partner subject to the contract between the partners.

Sharing of Risk

• The liability of the partners in a partnership firm is unlimited.
•  If the business incurs losses, the partners are jointly and severally liable.
• The profit sharing among the partners is stated in the partnership deed, which reduces the possibility of disagreements among the partners.
• Shares owned by the partnership firm cannot be transferred to another individual or partner without the consent of all the partners.
• In legal matters, all the partners are equally responsible.

Protection of interest of all partners

The duties, rights, and responsibilities of the partners in the firm are conceptualised in a written agreement (partnership deed), giving an edge in protecting their interests. The disputes (if any) among the partners can be resolved, by appointing an arbitrator, through mutual negotiation, or proper legal channels.