Lucknow Consultant

Partnership registration in Lucknow

Partnership registration

Partnership registration in Lucknow, Uttar Pradesh is a business structure in which two or more individuals come together to operate a business with a view to make profit. In Lucknow, partnerships are governed by the Indian Partnership Act, 1932. The act lays down the legal framework for the formation, registration, and dissolution of partnerships in Lucknow. In this blog post, we will discuss the nature of partnerships, the registration process, types of partnerships, advantages and disadvantages of partnerships, legal provisions and the list of documents required for partnership registration in Lucknow.

Nature of Partnership: A partnership is an agreement between two or more individuals to carry on a business with a view to make profit. The partners contribute money, property, labour or skill towards the business, and in return, they share the profits or losses of the business. Partnerships are considered separate legal entities from the partners and are generally considered a separate taxable entity.

Forming a partnership firm in Lucknow involves the following steps:

  1. Choose a business name: The first step in forming a partnership firm is to choose a unique business name. The business name must not be similar to any existing registered business and must not contain any offensive or prohibited words.
  2. Draft a Partnership Deed: The next step is to draft a partnership deed, which lays out the terms and conditions of the partnership, such as the nature of the business, the rights and responsibilities of the partners, and the profit and loss sharing ratio. The partnership deed must be signed by all the partners.
  3. Register the Partnership Deed: The partnership deed must be registered with the Registrar of Firms in the state where the partnership firm is located. This can be done by submitting the partnership deed, along with the required documents, such as PAN card and ID proof of the partners.
  4. Obtain a PAN card: After registering the partnership firm, the partners must obtain a Permanent Account Number (PAN) card for the partnership firm. This can be done by submitting the required documents to the Income Tax Department.
  5. Obtain a TAN card: After obtaining the PAN card, the partnership firm must apply for a Tax Deduction and Collection Account Number (TAN) card. This can be done by submitting the required documents to the Income Tax Department.
  6. Register for GST: If the partnership firm’s turnover is more than 20 Lakhs, then it is mandatory to register for GST.
  7. Obtain Trade License: The partnership firm must apply for a trade license from the local municipal corporation. This can be done by submitting the required documents and paying the necessary fee.
  8. Obtain FSSAI License: If the business involves food and beverages then it is mandatory to obtain FSSAI License.
  9. Obtain other licenses: Depending on the nature of the business, the partnership firm may also need to obtain other licenses and permits, such as a factory license or a professional license.

Types of Partnership Firms:

  1. General Partnership: In this type of partnership, all partners have equal rights and responsibilities in the management and administration of the business.
  2. Limited Partnership: In this type of partnership, one or more partners have unlimited liability while the other partners have limited liability.
  3. Limited Liability Partnership (LLP): This is a hybrid form of partnership, where all partners have limited liability and the management and administration of the business is done by designated partners.

Registration Process: The registration process for a partnership firm in Lucknow is relatively simple and can be completed in a few steps. The following is a general outline of the process:

  1. Choose a business name: The first step in registering a partnership is to choose a unique business name. The business name must not be similar to any existing registered business and must not contain any offensive or prohibited words.
  2. Obtain a PAN card: The next step is to obtain a Permanent Account Number (PAN) card for the partnership firm. This can be done by submitting the required documents to the Income Tax Department.
  3. Obtain a TAN card: After obtaining the PAN card, the partnership firm must apply for a Tax Deduction and Collection Account Number (TAN) card. This can be done by submitting the required documents to the Income Tax Department.
  4. Register for GST: If the partnership firm’s turnover is more than 20 Lakhs, then it is mandatory to register for GST.
  5. Obtain Trade License: The partnership firm must apply for a trade license from the local municipal corporation. This can be done by submitting the required documents and paying the necessary fee.
  6. Obtain FSSAI License: If the business involves food and beverages then it is mandatory to obtain FSSAI License.
  7. Obtain other licenses: Depending on the nature of the business, the partnership firm may also need to obtain other licenses and permits, such as a factory license or a professional license.

Types of Partnership:

  1. General Partnership: This is the most common type of partnership, where all partners have equal rights and responsibilities in the management and administration of the business.
  2. Limited Partnership: In this type of partnership, one or more partners have unlimited liability while the other partners have limited liability.
  3. Limited Liability Partnership (LLP): This is a hybrid form of partnership, where all partners have limited liability and the management and administration of the business is done by designated partners.

Advantages of Partnership registration:

  1. Easy to set up: Partnerships are relatively easy to set up and require less formalities than other forms of business registration.
  2. Shared resources: Partnerships allow partners to pool their resources and expertise, which can lead to greater efficiency and productivity.
  3. Shared risk: Partnerships allow partners to share the risks and rewards of the business, which can lead to greater stability and security.
  4. Tax benefits: Partnerships may be eligible for certain tax benefits, such as deductions for losses and depreciation.

Disadvantages of Partnership:

  1. Unlimited liability: Partners are personally liable for the debts and obligations of the business, which means their personal assets may be at risk.
  2. There is high Potential for disputes among partners.