Documentation - Day - 1
The process starts with documentation of the partners and the place of business where from where the firm shall be operating its business in India. Ensure that the documents are updated and correct. The list of documents required is provided above for your reference. We shall also require information in the Questionnaire For Partnership Formation.
Selection of Name - Day - 1
The name of the partnership firm should be cross-checked with the trademark registry to avoid any infringement of someone else Trademark or brand name. The selection of a proper name should be starting point, we search the proposed name of the firm in the trademark register to avoid any infringement on someone else's trademark. To learn more on trademark click here
Drafting of Partnership Deed - Day - 1
The Partnership Agreement or the Deed is the main document of the firm and is also considered as the constitution of the firm which determines the mutual rights of the partners among themselves. This document also specifies the capital and profit sharing ratio and how the firm shall be operated by the partners.
Payment of Stamp Duty for the Partnership Deed - Day - 1
After the draft partnership agreement is approved and adopted by the parties the stamp duty on the partnership deed has to be paid which varies from state to state and on the capital of the partnership agreement. In none of our packages we have included the value of stamp duty and it is required to be paid by clients on actual basis.
Signing of Partnership & Notary of Deed - Day - 2
Finally the partnership deed is signed by the partners in the presence of two witnesses and thereafter the deed should be notarised by presenting the same before a notary public.
PAN Number Allotment - Day - 2-7
The partnership firm needs to make an application in the prescribed form before the income tax department for the allotment of PAN, The acknowledgement of pan application for the partnership firm is received within the same day, however, the pan is allotted within a week time.
TAN Number Allotment - Day - 2-7
TAN number is a permanent number allotted to business for complying with the provisions of withholding tax. You are required to deduct TDS while making payments, hence the next step is to obtain TAN number, which is mandatory to submit TDS Returns.
Minimum Two Person
Two person is needed to become partners of the firm. However, maximum 20 partners are allowed in a firm (10 in banking business)
No FDI is Allowed
Foreign investment in a partnership firm is not permitted. In the firm, only Indian citizen can become the partner and start the partnership firm.
No Minimum Capital
No minimum capital is prescribed, it must be based on the business requirements. The Stamp Duty on the deed is based on the capital of the firm.
Name of the firm should be unique, and it must not same or similar to the name of any existing trademark which is registered or applied.