Partnership Firm Registration
A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations. Organizations may partner to increase the likelihood of each achieving their mission and to amplify their reach. A partnership may result in issuing and holding equity or may be only governed by a contract. These firms are governed by the Indian Partnership Act, 1932.In other words Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
Two heads (or more) are better than one. Your business is easy to establish and start-up costs are low. More capital is available for the business. You'll have greater borrowing capacity. Also to get loan is easy with it. It is incentive to work, effective management. Partnership business is more flexible than sole trading concern because the business can be easily financed for growth and expansion. It can be dissolve after making the agreement between regarding the dissolution of a business . Following features are:-
Partnership firms are required to maintain compliance like LLPs and Companies registered in India. Partnership firm compliance mainly includes filing of income tax return. The ITR of the Partnership is filed after collecting the required documents in the form of ITR-5 and if the Partnership firm meets the criteria, the audit is prepared for the firm as per the Income Tax Act. The due date for ITR filing in case of no audit is July 31, and due date in case of an audit is September 30. Partnership firms may also be required to comply with TDS regulations, GST regulations, ESI regulations and others. The compliance requirement for a business would vary based on the type of entity, industry, state of incorporation, number of employees and sales turnover.
