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. Under Tax Compliance; Filing of Return of Income.