Partnership registration in Bihar is the process of registering a partnership firm in Bihar, India. A partnership is an agreement between two or more people to carry on a business together with the aim of making a profit.
Meaning and Definition: A partnership firm is a type of business structure where two or more individuals carry on a business together as partners. The partnership firm is governed by the Indian Partnership Act, 1932.
Legal Provisions: According to the Indian Partnership Act, 1932, the following provisions must be fulfilled for partnership registration in Bihar, India:
- The firm must have at least two partners.
- The partnership must have a written agreement.
- The partnership agreement must be registered with the Registrar of Firms.
- The partnership firm must have a unique name.
Rules: The following rules must be followed for partnership registration in Bihar, India:
- Select a unique name for the partnership firm.
- Draft a partnership agreement that outlines the terms and conditions of the partnership.
- Register the partnership agreement with the Registrar of Firms.
- Obtain a PAN card for the partnership firm.
- Obtain a TAN card for the partnership firm.
Types: There are two types of partnership firms in India:
General Partnership: In a general partnership, all partners are equally responsible for the debts and obligations of the firm.
Limited Partnership: In a limited partnership, there are two types of partners – general partners and limited partners. The general partners are responsible for the debts and obligations of the firm, while the liability of limited partners is limited to their investment in the partnership.
- Easy to set up and manage.
- Shared financial burden and risk.
- Partnership firms have more credibility than sole proprietorship firms.
- Partnership firms can be flexible in terms of profit sharing and management structure.
- Unlimited liability of partners.
- Partnership firms have a limited life span.
- Difficult to raise capital compared to companies.
- Limited legal status.
Documents Required: The following documents are required for partnership registration in Bihar, India:
- Partnership deed.
- Identity proof of partners, such as Aadhaar card, passport, or voter ID card.
- Address proof of partners, such as electricity bill, telephone bill, or bank statement.
- PAN card of the partnership firm.
- TAN card of the partnership firm.
- Partnership firm registration fee.
In conclusion, partnership registration in Bihar, India is a simple process that requires a written partnership agreement, registration with the Registrar of Firms, and obtaining a PAN and TAN card for the partnership firm. A partnership firm is easy to set up and manage, but has unlimited liability and a limited lifespan. It is important to comply with the legal provisions and rules governing the registration and functioning of partnership firms in India to avoid any legal issues in the future.
Partnership registration in Bihar is registration of association of persons, who enter into agreement to carry out a business for profit. Partnership is coming together of two or persons, to pursue a common goal with aim to share profits.
Partnership firm is association of two or more persons, who enter into an agreement with each other to carry out a business for profit.
Different partnership arrangements are conceivable in which everything accomplices could share liabilities and benefits similarly or a few accomplices might have restricted obligation. Few out of every odd accomplice is fundamentally engaged with the administration and everyday tasks of the endeavor, for example, on account of a “quiet accomplice.” In certain purviews, organizations appreciate ideal expense treatment comparative with partnerships.
Albeit not legally necessary, accomplices ought to make an association arrangement that characterizes the significant terms of the connection between them. Association arrangements can be framed in the accompanying regions:
Business: at least two organizations unite in a joint venture or a consortium to I) work on an undertaking (for example modern or exploration project) which would be excessively weighty or excessively unsafe for a solitary substance, ii) work together to have a more grounded position available, iii) agree with explicit guideline (for example in a few arising nations, outsiders can put resources into the type of associations with nearby business people.
Politics: In what is normally called a coalition, legislatures might accomplice to accomplish their public advantages, some of the time against unified states holding opposite interests, as happened during World War II and the Cold War.
Knowledge: In training, certifying organizations progressively assess schools, or colleges, by the level and nature of their associations with nearby or worldwide companions and an assortment of different substances across cultural areas.
Individual: Some associations happen at individual levels, for example, when at least two people consent to habitation together, while different organizations are private, however private, known distinctly to the elaborate gatherings.
Forming a Partnership (Partnership registration)
Organizations are typically enrolled with the state wherein they carry on with work, however the necessity to enlist changes from one state to another.
Organizations utilize association consent to explain the connection between the accomplices, the jobs and obligations of the accomplices, and their individual offers in the benefits or misfortunes of the organization.
If you want to start a business with two or more persons, registering business in form of Partnership is best way in Bihar.
It is generally simple to frame an association, be that as it may, as verified over, the business should be enlisted with the state where the accomplices carry on with work. Contingent upon the state, you might have the decision of at least one of the sorts of associations referenced previously. Whenever you have enlisted with your state, you can then continue to the next ordinary undertakings in beginning a business.
Benefits of a Partnership:
Organizations as associations don’t need to cover annual duty; each accomplice documents the benefits or misfortunes of the business on their very own personal expense form. This way the business doesn’t get burdened independently.
Simple to lay out.
There is an expanded capacity to raise supports when there is more than one proprietor
More extensive pool of information, abilities, and contacts.
Further developed administration with more than one proprietor.
Frequently Asked Questions:
- What are the principle parts of an association deed?
The deed ought to contain names of the accomplices and their addresses, the association name, the date of initiation of activity of the firm, any capital contributed by each accomplice, the kind of organization and benefit sharing grid, rules and guidelines to be kept for admission of accomplices or expulsion.
- Is association firm enlistment vital?
No, enlistment of an association isn’t required. In any case, for an accomplice to sue another accomplice or the actual firm, the association ought to be enlisted. Also, for the organization to carry any suit to court, the firm ought to be enrolled. Consequently, it is suggested that bigger organizations register the association deed.
Partnership formation in Bihar involves the process of creating a partnership agreement and registering it with the Registrar of Firms. Here are some more details on the steps involved in partnership formation in Bihar:
Selecting a Partnership Name: The first step in partnership formation is selecting a name for the partnership firm. The name should not be the same as that of any other registered partnership firm or company in Bihar. It is advisable to do a name search on the Ministry of Corporate Affairs website to ensure that the chosen name is available.
Drafting a Partnership Agreement: The next step is drafting a partnership agreement that outlines the terms and conditions of the partnership. The partnership agreement should include details such as the name of the firm, names of partners, profit-sharing ratio, capital contribution, duties and responsibilities of partners, and the duration of the partnership. The partnership agreement must be signed by all partners.
Registering the Partnership Agreement: Once the partnership agreement is drafted, it must be registered with the Registrar of Firms. The partnership agreement must be signed by all partners and notarized. The registration fee for partnership firms in Bihar varies based on the capital contribution of the partners.
Obtaining PAN and TAN: The partnership firm must obtain a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. PAN is mandatory for all partnership firms and is required for opening a bank account, filing tax returns, and obtaining various licenses and permits. TAN is required for deducting and remitting taxes on behalf of employees and suppliers.
Obtaining Other Licenses and Permits: Depending on the nature of the business, the partnership firm may be required to obtain various licenses and permits from the relevant authorities. For example, if the partnership firm is involved in food manufacturing, it may need to obtain a food license from the Food Safety and Standards Authority of India (FSSAI).
In conclusion, partnership formation in Bihar is a relatively simple process that involves selecting a partnership name, drafting a partnership agreement, registering the partnership agreement with the Registrar of Firms, obtaining PAN and TAN, and obtaining other licenses and permits as required. It is important to comply with all legal provisions and rules governing partnership firms in Bihar to ensure smooth functioning of the partnership and to avoid any legal issues in the future.