CRSPL | Business Consultant | Start-Up Consultant

Overview
Benefits
Documents Required
Registration Process
Why CRSPL

Overview

A Partnership means two or more people agreeing to do Business together. They share the profit & loss of a business carried on by all or any of them acting for all. It is regulated under the Indian Partnership Act, 1932. The Business of the partnership is carried on by the Firm name, which is chosen by the partners.

The partners' relationship arises from the Partnership Deed contract, which laid down all the rules & regulations to carry out Business by the partners. As per the Indian partnership act, a partnership firm can be registered or unregistered.

Difference between Registered Partnership & Unregistered Partnership:

Particulars	Registered Partnership	Unregistered Partnership
Applicability of the Indian Partnership Act, 1932	The firm is registered under the Act. Therefore provisions of the Partnership Act will apply.	The firm is not registered under the Act. Hence provisions of the Partnership Act will not apply.
Right to sue other Parties	The firm has the legal right to sue the other parties under a court of law.	The unregistered firm does not have the legal right to sue anyone under the law.
Right to sue Partners	The Partners have the right to sue the other partner as per the provisions of law.	The partners cannot sue other partners.
Right to claim	The registered partnership firm has the right to claim against the other party as per law.	The unregistered partnership firm cannot file a claim against the party for the due more than Rs. 100/-.
Reliability	In this partnership, partners can easily rely upon the other partners.	In this partnership, partners cannot rely upon the other partners.
Conversion of Partnership Firm into Limited Liability Partnership (LLP) & Company	The registered partnership can easily convert itself into a Limited Liability Partnership (LLP) or Company.	The unregistered partnership cannot convert into LLP or Company. They first have to register themselves under the Indian Partnership Act and afterward follow the conversion process accordingly.
The Benefit under the Income Tax Act	The registered firm can avail of various tax benefits provided under the Income Tax Act.	The unregistered firm cannot avail of the tax benefit provided under the provisions of the Income Tax Act.

Benefits

Registration is not compulsory;
Business can be started anytime, any day, without any hassle;
Easy & Quick Decision-making
The Profit & Losses will be divided as per the share ratio mentioned in the Partnership Act. Would receive all the profits and be liable for losses;
The dissolution of the firm will be based on the circumstances mentioned under the partnership deed;
In the case of a registered partnership - Legal right to sue or be sued by other people in a court of law.
Low maintenance costs.
Registered firms can easily convert into private companies or LLPs.
Easy to raise money through contributions to capital.
The Partners can bring their different skills, knowledge, and experience to the Business.
Contractual Relationship between the Partners.

Type of Partnership:

Partnership at Will: When there is no clause in the partnership deed for the duration of the partnership, such partnership is termed Partnership at Will. In this case, the dissolution of a partnership is not decided. Therefore, any partner, by giving notice of intention of dissolution, can dissolve the partnership.
Fixed-Term Partnership: When a partnership is formed for a fixed tenure, such partnership automatically dissolves after the end of the time mentioned in the partnership deed.
Venture Partnership: When a Partnership is formed to carry out a specific contract or Business is called Venture Partnership. Therefore, after the completion of the contract/task, the firm will be automatically dissolved.

Partnership Deed

A Partnership Deed is a contract or charter of the firm; wherein all rules & regulations of the partnership business are stated. The clauses which are required to mention in the partnership deed are as follows:

Name & Address of the Partnership Firm
Name & Address of the Partners
Nature of Business
Date of commencement of Business
Profit-Loss sharing ratio between the partners
Capital Contribution by the partners
Duration of the partnership
Salary payable to partners
Admission or retirement procedure of partners
Arbitration clause
Loan & advances and their terms
Dissolution of the Partnership
Maintenance of books of accounts of the firm
Drawings by Partners, i.e., an amount which can be withdrawn by the partners for their personal use
Interest in Partners Drawing
Work responsibility of each partner
Applicability of the provisions of the Indian Partnership Act, 1932.

Registration Process

Registered Partnership:

The registration process of the partnership firm may vary from state to state. For example, in Delhi, registration is required through the online portal as well as submission of the hard copy of the documents to the Sub-registrar Delhi (Jurisdiction basis). The following documents are required for the registration:

Application in Form No.1
Attested & Notarized Copy of a Partnership Deed (on Non-Judicial Stamp Paper) signed by all the Partners
Attested & Notarized affidavit stating all the details mentioned in the Deed and Documents are correct.
Passport-size photograph of all the Partners
Self-attested Pan and Address proof (Aadhaar/Voter ID/ Passport etc.) of all the Partners
Mobile Number and Email ID of all the Partners
Principal place of Business proof – Rent Agreement/ Lease Deed/ Electricity Bill along with NOC from Landlord/ House Tax Receipt
Any additional documents required by the registrar (state-to-state basis)

The registrar, after satisfaction of compliance of documents, will provide the registration certificate and register the firm in their records.

Why CRSPL

The CRSPL is the leading Business Consulting Company and recognized start-up by the DIPP Government of India. CRSPL is managed by professionals with more than ten years of experience in this field and has already provided satisfactory results to numerous renowned clients. CRSPL is the one-stop solution for Secretarial, Legal, Taxation, Finance, and Technology assignments across India. Key highlights for you:-

10 Years of Industry Experience;
Quick, Best & Affordable Services;
24x7 Service Support;
4.8 Stars Rating on Google;
4.7 Stars Rating on JustDial;
We Support Local for Vocal

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