โAt GST Suvidha Center (Branch: WB 093), managed by Purna Chandra Achary, we simplify the complex legal landscape for small businesses and traders. A Partnership Firm is one of the most popular forms of business in India due to its ease of formation and minimal compliance compared to Private Limited Companies.
โBelow is a professional breakdown of the registration process and the ongoing legal requirements you must fulfill to stay compliant.
โ1. Registration of a Partnership Firm
โWhile registration under the Indian Partnership Act, 1932 is optional, it is highly recommended. An unregistered firm cannot sue third parties or its own partners in court, making legal protection difficult.
โStep-by-Step Registration Process
- โSelection of Firm Name: Choose a unique name that does not conflict with existing trademarks or government-prohibited terms.
- โDrafting the Partnership Deed: This is the “Constitution” of your business. It must include:
- โName and Address of the Firm and Partners.
- โNature of Business and Date of Commencement.
- โCapital Contribution by each partner.
- โProfit/Loss Sharing Ratio.
- โInterest on Capital and Drawings.
- โProvisions for Admission, Retirement, or Dissolution.
- โExecution and Notarization: The deed must be printed on Stamp Paper (as per state stamp duty laws) and signed by all partners in the presence of witnesses. It should then be notarized.
- โApplication to the Registrar of Firms (RoF): File Form 1 with the RoF in the state where your business is located.
- โIssuance of Certificate: Once the Registrar is satisfied with the documents, a Certificate of Registration is issued.
โEssential Documentation Checklist
- โPartners’ KYC: PAN Card (Mandatory), Aadhaar Card, Passport, or Voter ID.
- โPhotographs: Recent passport-size photos of all partners.
- โAddress Proof of Firm: * If Owned: Electricity Bill/Property Tax Receipt.
- โIf Rented: Rent Agreement and a No-Objection Certificate (NOC) from the landlord.
- โThe Partnership Deed: Notarized and executed on proper stamp paper.
โ2. Post-Registration Statutory Compliances
โOnce registered, the firm must adhere to various tax and regulatory laws to avoid heavy penalties.
โA. Tax Registrations & Filings
- โFirm PAN & TAN: Apply for a separate Permanent Account Number (PAN) for the firm. If you plan to deduct tax at source (TDS), a Tax Deduction Account Number (TAN) is mandatory.
- โGST Registration: Required if annual turnover exceeds โน40 Lakhs (for goods) or โน20 Lakhs (for services), or if you engage in inter-state trade.
- โIncome Tax Return (ITR): Partnership firms must file ITR-5 annually. The tax rate is generally a flat 30% plus applicable cess and surcharge.
โB. Accounting & Audit Requirements
- โMaintenance of Books: You must maintain proper journals, ledgers, and cash books.
- โTax Audit: Mandatory if the total turnover exceeds โน1 Crore (or โน10 Crores if cash transactions are less than 5% of total transactions) under Section 44AB of the Income Tax Act.
- โGST Audit: Reconciling books with GST returns annually.
โC. Periodic Compliances
| Compliance Type | Frequency | Description |
|---|---|---|
| GST Returns | Monthly/Quarterly | GSTR-1 (Outward Supplies) & GSTR-3B (Summary Return). |
| TDS Returns | Quarterly | Filing forms 24Q, 26Q, or 27Q if taxes were deducted. |
| Advance Tax | Quarterly | Paying tax in installments if the total tax liability exceeds โน10,000. |
| Professional Tax | Monthly/Annual | Applicable in certain states (like West Bengal) for the firm and employees. |
3. Why Choose GST Suvidha Center (WB 093)?
โWe take the burden of “Tech-Savvy” requirements off your shoulders. Our center provides:
- โExpert Drafting: Specialized CA/Legal experts to draft your Partnership Deed.
- โDigital Convenience: Online application and status tracking through our robust CRM.
- โAffordability: Nominal rates compared to high-end consulting firms.
- โIntegrated Services: From Banking and Loans (Mudra) to Insurance and Travel, we are your one-stop business gateway.
