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Partnership Firm Registration

Consist of a team of two or more? Partnership might be the way to go
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    Partnership Firm Registration In Andhra Pradesh

    In  India partnership is the most widely adopted Business Form. When 2 or more people come together to run a business with a common goal, they are operating a partnership firm. The proceeds from the firm be it profits or losses are shared among the partners based on mutual agreements and decided profit-sharing ratios. These terms are usually listed in a document called a deed

    Partners have unlimited liability. This means, that if the assets of the partnership firm are not enough to meet the loss/business obligations of the firm, the partners will have to contribute from their personal assets.

    Benefits of a Partnership Firm

    Simplified Setup:

    Partnership firm registration involves less complexity compared to limited companies and LLPs. It is very easy to setup

    Combined Expertise:

    Partners bring their unique skills and experience to the table, fostering a well-rounded business approach. Moreover having more than one person helps in bringing in synergy benefits to the business

    Shared Financial Responsibility:

    Partners share profits and losses, distributing financial risks and rewards.

    Tax Benefits:

    Partnership firms may benefit from certain tax advantages compared to companies. For example, profit distributed by a firm to its partners is not taxable to the partners. But in the case of private limited companies its not the case, dividends are taxable to the recipients

    Joint Decision-Making:

    Partners share decision-making authority, fostering collaboration and agility.

    Enhanced Capital Opportunities:

    Combining resources from multiple partners allows for greater access to capital for business ventures. Partnerships can easily scale up their business

    Conversion to Private Limited Company:

    Partnership firms can be easily converted into a Private Limited Company if desired for future growth or liability protection.

    Documents Required for Partnership Firm Registration In Andhra Pradesh

    • Partnership Deed: A written agreement outlining the rights, duties, profit-sharing ratio, and dispute resolution mechanisms between partners. It is better to get it drafted by a professional to ensure all clauses are legally valid and enforceable
    • Identity Proof of Partners: Aadhaar card, PAN Card, or Passport of each partner.
    • Address Proof of Partners: Utility bill, rental agreement, or other documents with each partner’s address.
    • Business Address Proof: Lease agreement, utility bill, or other documents for the firm’s business address.
    • Recent Photographs: Passport-sized photographs of all partners.

    FAQ's on partnership firm registration in Andhra Pradesh

    Get answers to your queries

    A minimum of 2 partners must be present to register a partnership.

    There is no minimum capital fixed by the Partnership Act 1932. Partners can contribute capital as per terms decided in the Deed

    A partnership can be converted into an LLP or private limited company. This is a simple process with the help of qualified professionals. Book your free consultation and let’s discuss this further

    Yes, partnership firms in India have to file their Income Tax Returns every year

    Not all partnership firms have to do a mandatory audit. However, once its turnover exceeds the applicable tax audit limits, it becomes mandatory.

    What is the Indian Partnership Act, of 1932? 

    The Indian Partnership Act, of 1932 governs the formation, operation and dissolution of partnership firms in India. Contents of partnership deed should be issued based on this Act to be legally valid

    tds return

    Eligibility Criteria for Partnership Firm Registration in Andhra Pradesh

    To register a partnership firm in Andhra Pradesh, you must meet the following criteria:

    1. Natural Person and Indian Citizen: All partners must be natural persons and Indian citizens or possess an Overseas Citizen of India (OCI) card. Unlike an LLP or Companie, members cannot be the artificial jurisdictional person.
    2. Resident in India: At least one partner must be a resident of India. This is a compulsory requirement  Also this determines the tax residency of the partnership for Income Tax Purposes.
    3. Minimum  Capital: There’s no minimum authorized capital requirement for registering a partnership firm. But in a practical scenario, the fixed capital to be maintained by partners needs to be laid down in the Deed.
    4. Restrictions on Certain Businesses: Certain businesses like banking, insurance, or public utilities may require specific licenses or permissions and may not be suitable for partnership firm registration. This depends on local legislation as well industry industry-specific norms. For instance, a bank must mandatorily be a Company formed in compliance with the Banking Regulations Act.  

    Partnership Firm Registration Procedure :

    Steps

    1. Partnership Deed Drafting: Team Clearbiz will help you draft a partnership agreement that not only aligns with your business goals but carefully lays down the terms and responsibilities of partners.
    2. Execution of Partnership Deed: Once the partnership deed is finalised, we help you execute it on the right stamp value. Execution is an integral step in partnership registration because it ensures the partnership deed is legally enforceable.
    3. Partnership registration: Further on if you want to get your partnership registered, we are here to help. Once the partnership deed is executed, ClearBiz will help you get it registered with the concerned SRO in Andhra Pradesh and handhold you till the certificate of partnership registration is issued.

    By entrusting the partnership registration process with CLearBiz experience the benefit of an all-online registration process., saving time and money Yes we are an all-digital team Clearbiz will ensure a timely and compliant registration process ensuring the entire registration process is simplified for you.

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    What is the cost involved in Partnership Firm Registration?

    The cost involved in registering a partnership firm in Andhra Pradesh can vary depending on factors like:

    1. Stamp duty as per relevant Stamp Act
    2. Professional fees for drafting of partnership Deed

    ClearBiz can provide you with a transparent cost breakdown based on your specific needs. Get in touch to get your free consultation and quote

    Why Choose ClearBiz for Partnership Firm Registration in Andhra Pradesh?

    ClearBiz is your trusted partner for smooth and efficient partnership firm registration in Andhra Pradesh. We offer:

    1. Cost-effective solutions: Our pricing structure is transparent and ensures you get the best value for your investment. We promise to deliver effective business solutions and affordable professional fees.
    2. Experienced professionals: Our team comprises experts with extensive experience in handling partnership firm.
    3. Streamlined Process: We take care of the complexity of the registration process, allowing you to focus on building your business.
    4. Time-Saving Efficiency: Our efficient approach helps you obtain your partnership firm registration swiftly.
    5. Compliance Assurance: We ensure your registration adheres to all legal requirements, providing peace of mind and avoiding potential delays or penalties.
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    Partnership Firm Taxation

    As per the provisions of the Income Tax Act 1961, profits of a partnership firm are taxed at 30% (No slab rates). However, the salary and interest paid to partners is tax deductible. Apart from this profit share taken home by partners from the firm is tax-free in their hands. On the indirect tax angle Partnerships have Turnover over and above the threshold limits (this limit is determined state-wise) to attract GST compliance. But fear not Team Clearbiz will assist you with all taxation matters.