Compliance of Partnership Firm
COMPLIANCE OF PARTNERSHIP FIRM
Partnership is an agreement between two or more persons who have agreed to share the profits (or loss) of a business carried on by all of them together or any of them acting for all. People who have entered into partnerships are separately called “partners” and collectively “a firm”. Partners are obligated to carry on the work of the firm to the greatest advantage, to be just and to produce true accounts and complete information of all things affecting the firm to all other partners.
There are two types of Partnership Firms, registered and unregistered Partnership Firms. A firm needs to comply with Section 58 of the Indian Partnership Act, 1932 to be fully registered. It is not compulsory to register the firm, but it is more advantageous to register a firm. Partnership firms are formed by drafting the Partnership Deed between the partners.
Compliance means conforming to a rules, regulations, acts, policies or standards. Compliances are required as it obligates organizations to work in line with the applicable law of land. Compliances ensure that the incorporation and business of a firm are in conformity with the applicable law.
Certain common Compliances of Partnership Firm
1. Registration of firm with a time limit of 1 year.
2. Change in Firm Name or Principal Place or Nature of Business with a time limit of 90 days.
3. Closing and Opening of Branches with a time limit of 90 days.
4. Compliance of Change in Name / Address of Partner with a time limit of 90 days.
5. Change in Constitution or Dissolution with a time limit of 90 days.
6. When a minor becomes major and elects to become or not to become a partner with a time limit of 90 days.
7. Under Tax Compliance; Filing of Return of Income
What are the advantages of the Compliances of Partnership Firm ?
1. Timely compliance creates track records of Partnership Firm in the eyes of Law.
2. Hefty and stringent penalties are avoided.
3. Easy Borrowing opportunity for Partnership Firm having regular compliance history.
4. Fast approval when Partnership Firm goes for any new ventures due to clear image in the eyes of Law such as Joint Venture with Foreign entity and many more advantages are there.
5. Partners are saved from being personal tax implications and heavy income tax penalties and inquiries.
What will you receive in Partnership Firm Compliance package ?
- 1. Complete Documentation
- 2. Statutory updates on regular basis so as to avoid any non-compliance
- 3. DSC Renewal as and when required
- 4. Regular compliance at very reasonable cost
- 5. Applicable Audits
- 6. GST Return filings
What is the process for the Partnership Firm Compliance ?
Step 1: Consultation with our experts regarding type of compliance to be made
Step 2: Preparation of documents and forms and filing with the Registrar of Forms (RoF)
Step 3: Receiving of any communication or clarification and submission thereof
Step 4: Getting the approval and conformation of the compliance made within time.
What Documents are required for the Partnership Firm Compliance ?
- Income Tax PAN of the Partnership Firm
- Partnership Deed or Agreement
- Valid and active DSC Token of Partners
How LeglaRaj will help with the Partnership Firm Compliance ?
1. Understanding of requirements:
Our team will be conducting the review of the assignment and accordingly expert guidance will be provided with a professional approach towards the Partnership Firm Compliance and its timelines and how to proceed with it.
After going through your requirements we will prepare the documents relating to the Partnership Firm Compliance.
3. Filing of forms & Returns:
After all the formalities and processes are completed, our expert will arrange for preparing and filing of necessary documents, returns and forms with the jurisdictional Registrar of Firms (RoF) in around 5 - 7 working days.