Partnership Firm Registration in Bangalore

  • The business is owned, managed and controlled by two or more persons as the Partners.
  • The maximum number of partners allowed is 20.
  • The profits and losses are shared between the partners in a pre-determined ratio.
  • Partnership Agreement is the principal document that defines the terms and conditions.

Important points to be noted

  • Unlimited liability and personal assets are attached to settle liabilities.
  • Minimum compliance and recommended for quick and easy set-up.
  • Very limited tax benefits.

List of Documents required

  1. Form 1 for application under Partnership Act
  2. Partnership Agreement
  3. Affidavit declaring intention to become a partner
  4. Rental or lease agreement of the property
Frequently Asked Questions

1. Is it mandatory to register a Partnership Firm?

It is not mandatory to register a Partnership firm, but is recommended to register as it helps in giving it a legal status.

2. Effect of not registering a Partnership Firm

It cannot file a case against any partner or firm or any other third party. Further, it does not have the option to claim set-off i.e, mutual adjustment of debts owed in a dispute with the third party.

3. Capital Requirement

No specific limit on the minimum capital for starting the business.

4. Name of the Partnership business

There is no registry or regulation for registering the name of the Partnership business. Hence, any name can be adopted that does not infringe on registered trademarks. To protect the rights on the name of the business, one can choose to get the trademark registered.

5. Compliance requirement

Income Tax filing in the name of the business has to be filed every year.

6. Conversion of Partnership into LLP or Company

It can be converted. All the assets and liabilities of the Partnership firm must be transferred to the private limited company or LLP.