Partnership firm registration in Bangalore is done so as to gain reputation in public and moreover it states that there are two or more people joins to do business who agrees to share the profit and the loss. So the contribution is for the business and it is very good choice for small enterprises. There are circumstances in which an entrepreneur himself alone cannot supervise, divide the job, and share the risk of profit or loss. This is where partnership form of business is now undertaken. Partnership firm registration in Bangalore comes under the Act 1932.In this it is not compulsory for the partners to register the firm; but we have to understand if not registered they cannot avail the benefits.
Section 58 of Indian Partnership Act 1932, lays down provision for Partnership Firm Registration in Bangalore. Partnership Firm Registration in Bangalore gives the following provisions.
Step1: Application for Partnership firm Registration in Bangalore
*Place of business
*Date of joining
*Duration of firm
To begin with Partnership firm registration in Bangalore, it is done by sending an application Form No 1. True copy of Partnership Deed along with requisite amount will be sent.
Step 2: Verification of Application for registration
*From date of Partnership formation the partners should sign and send within one year.
Step 3: Naming the firm
The firm so registered must use brackets and the word (Registered) after this name.
If any of the partners has an objection in the name he can appeal within 30 days with requisite fee.
Entry of Statement in Register:
As per Section 59, registrar makes entry of statement.
Apply with a PAN card
Open a Bank account.
To begin with Partnership firm Registration Bangalore, it should educate the above said details.
Characteristics of Partnership firm Registration in Maruthi seva nagar-Bangalore
*Formed on basis of Partnership deed
*Profit or loses shared among the partners
*Agency relation and unlimited liability between the partners.
*Restriction on share transferability.
*Partnership ends on retirement, solvency and retirement.
What does a Partnership Deed contains?
*Nature of the business
*Financial information like
*Capital amount invested
*Profit and loss sharing
*Method of distributing income to each partner
*It says method of changing the partner if a partner is expelled
*It says method of dissolving a partner if business comes to an end
*Information with regards to mode of arbitration of disputes.
Does Partnership business become Illegal
The Partnership firm Registration in Bangalore says that Partnership business becomes illegal
*If number of partners limit exceeded
*If any of the partners involve in illegal activities
Types of Partnership firm registration in Bangalore
*General Partnership (GP)
*Limited Partnership (LP)
*Limited Liability Partnership (LLP)
*Limited Liability Limited Partnership
Types of Partners
The Partnership firm Registration in Bangalore states all the type of Partners.
*Working partner-Actively participated in the business
*Sleeping or Dormant partner-He does not take active part in Management business. He just contributes to the capital.
*Nominal Partner-A nominal partner is interested in profit of the business but not actively participate in the business. A nominal partner name lends credibility and also a nominal partner is paid.
Usually, a nominal partner is also called as Limited partner or ostensible partner.
*Partner by Estoppels-In this case he is a person by words or conduct represents himself as a partner. Consequently, a person becomes liable to advance money to the firm under the impression that he is partner in the firm.
*Partner by holding out-Thus, it says that if person is declared as a partner and if he does not deny when he becomes aware of it, then he is liable to third parties who lend money.
*Limited Partner-limited partner has purchased shares in investment but does not involve in day to day business activity.
*Sub partner- Furthermore, he is a partner in partnership firm who shares the profit in partnership company with an outsider to the firm. He does not hold any right against the firm nor liable to hold any debts caused by the firm.
*Partner in profit-Similarly, he/she is the partner who takes part in business actively and shares profit and loss.
Advantages of Partnership firm Registration in Bangalore
*Easy to start-The only thing is they need Partnership deed and can be started on same day.
LLP registration is done in 10 days as DSC, DIN, Name approval and incorporation must be obtained by MCA.
*Decision making-Decision making is crux of the partnership firm. Decision making in partnership firm could be faster.
*Raising of funds-Partnership firms can easily raise funds. Moreover Banks are also interested in granting the funds to the partnership firm
*sense of ownership-Every partner enjoys the ownership of the firm.
Disadvantages of Partnership Firm Registration in Bangalore
*Unlimited liability-Every partner in the firm is liable to the losses in a partnership firm.
*Number of members-The maximum number of members in Partnership firm is restricted to 20.In LLP formed by the Government there is no maximum number of members.
*Lack of central figure-If there is no central figure then the partners take more power
*Distrust among public-Since there is no necessity to ft register the partnership firm and if this is what chosen, then there will be distrust among the public.
*Abrupt dissolution-Particularly, if any of the partners is dead then dissolution of the partnership happens abruptly. There is also risk if any of the partners involve in criminal activities.
To summarize the LLP structure given by the Government, there is no dissolution of company if any one deceased.
Dissolution of Partnership firm
*It is caused by Dissolution of Agreement
*Dissolution by Notice
*Expiry of the term
*Completion of work or contract
*Registration of partner
Can a partnership firm be invalid?
If partnership firm is not registered, court may deem a partnership invalid.
Time taken for partnership firm registration in Bangalore is 12 to 14 working days.
Online Application for registration
Step1: Complete partnership form
Step2: Verification of the documents
Step3: Partnership deed drafting
Step4: Apply for TAN-(Tax deduction and Collection Account number) and PAN
Step5: Partnership registration work is completed.
By the way, all the firms must be registered under the Act so as to gain public trust and reputation. So it must be done. Finally, to know more about partnership firm registration in Maruthi seva nagar Bangalore, click here.