Snow
Partnership Firm

The partnership firm is an association of 2 or more persons who desire to come together and carry out a business in accordance with the terms and goals set out in the Partnership Deed. Further, more than one owner helps to increase the skills and improves the decision-making process. In addition to this, the risk of losses will be shared by all the members in this type of company. It is registered under The Partnership Act, 1932.

Advantages
  • A partnership registration is very easy and inexpensive as compared to LLP.
  • It has minimum compliance requirement.
  • Audit of accounts is not compulsory.
  • No minimum capital required.
  • Registration is optional.

Documents/Details Required for Registration of Partnership Firm

Statement in Form 1 with the prescribed fees Notarised True copy of the Partnership deed stating the following:

Documents/Details Required for GST Registration of Partnership Firm

Naming Criteria

  • The name of a Firm should have a short, unique and meaningful name shall not be identical with or too nearly resembles the name of an existing company.
  • No Firm shall have a name which, in the opinion of Central Government, is undesirable or the name proposed resembles any connection with Government or State patronage, unless prior approval of the Central Government is obtained.
  • The name of the Firm shall not be one prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950.
  • The name should not be such that its use by the company will constitute on offence under any law.
  • The name should not be illegal or offensive.
  • The name should not be misleading for the public.

Eligibility for registering Partnership Firm

  • Only a natural person who is a resident of India can be a partner.
  • Every Firm shall have at least 2 partners.
  • Karta of HUF can be a partner in a partnership firm.
  • A company being an artificial legal person can be a partner in a firm if authorised by its articles.
  • Unless and until constitution or objects of trustees forbids to the contrary, trustees of religious trust/family trust/or any other religious endowments can be partners in a partnership firm.

FAQs

A private company means a company, which has such minimum paid-up share capital as may be prescribed and which by its articles provide the following:- i. Restricts the right to transfer its shares; ii. Except is case of one person company (OPC), limits the number of its members to 200 excluding present and past employees who continue to be the members of the company (here joint members shall be counted as one); and iii. Prohibits any invitation to the public to subscribe for any securities of the company.
There should be at least two members and two directors in a Private Company.
3. What is the maximum number of members and directors a Private Company can have?
There can be a maximum of 200 members and 15 directors in a Private Company.
4. What changes are required to be made in Articles and Memorandum of a Private Company to convert it into Public company?
Alteration of its articles thereby deleting the 3 restrictions, changing its name thereby deleting the word “private” from its name, increase the number of members to at least 7 and number of directors should be increased to at least 3.
5. What changes are required to be made in Articles and Memorandum of a Private Company to convert it into Public company?
A Private Company may convert itself into an OPC by passing a Special Resolution in the general meeting after obtaining NOC in writing from its members and creditors. The company shall file an application in Form INC-6 for its conversion into One Person Company.
6. What are the documents required for incorporation?
Copy of Aadhaar Card, Voter ID Card, PAN Card (compulsory), Passport, Driving license, Water bill, Telephone bill, Mobile bill or Copy of bank pass book or Net banking statement mentioning address of the applicant, Passport size photo of the proposed director & shareholders, copy of the rent agreement with NOC from Landlord, PAN Card of the company, etc.
7. How much does it approximately cost for registration of a Private company?
The cost could be anywhere between Rs. 6000 to Rs. 10000.
8. Do Private limited companies benefit small businesses or start-ups?
Yes, small business and start-ups get benefits of getting themselves registered as a private company. They get the advantage of credibility and good reputation in the eyes of big financial institutions, clients and suppliers. Also, they get easy loans from banks.
9. What are the eligibility criteria to be a shareholder or director for a Private limited company?
The person should meet the conditions like the minimum age of the person should be 21 and resident or citizen of India to become a shareholder or director of the company.
10. Which forms are required for Private limited Company registration?
INC – 32 (SPICE+), INC – 33 (e-MOA), INC – 34(e-AOA), INC – 35 (AGILE PRO), INC – 9, DIR – 12, DIR – 2 and INC – 22.
11. What is DIN?
DIN is Director Identification Number. Any person planning to become a director in a company must apply for a DIN, issued by the Ministry of Corporate Affairs.
12. Is a foreign entity authorized to be a Director or Shareholder in a Private company?
Yes, every foreign national, entity or a NRI can become a director or shareholder of a private limited company in India.

CONTACT US






    2021 First Stage is the leading provider of business, legal & tax solutions in India.

    whatsapp