The most popular type of registration in India is for a partnership firm. The key advantages of partnership registration are that it is the most cost-effective in this category, that it requires minimal tax compliance, that it is simple to create the organization, and that it does not require any initial capital. It is suggested for small businesses and home-based businesses.
What is a Partnership Firm?
A partnership firm is a type of business structure or entity used to conduct small and medium-sized transactions between two partners under certain terms and conditions known as the 'partnership deed.' When the LLP was introduced, this type of registration became obsolete.
Requirements for Company Registration:
- Two partners are required.
- Copy of proposed Partners' PAN cards (self-attested)
- Proposed partners' ID proof (Passport/Driving License/Voters ID) (self-attested)
- All directors must provide proof of current residence (bank statement/electricity bill/mobile bill) (self-attested)
- Proof of the proposed Registered Office's address (electricity bill/property tax receipt, etc.) It could be a residence.
- 2 passport-size photos of potential Partners
Partnership Registration Process
- Partnership Agreement Drafting Deed
- Filing with the Partnership Registrar
- Obtaining a Partnership Registration Certificate
Why register a Partnership Firm?
- It is a low-cost model for running a business.
- The most effective way to start a small business.
- Suggestions for home-based businesses