Directory Image
This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Privacy Policy.

Benefits of Firm Registration in India

Author: Aditi Singh
by Aditi Singh
Posted: Jun 02, 2020

Partnership firm registration contains various benefits which helps a start-up in so many ways. A Partnership firm registration is very popular type of business registration in India. It is a registration where two persons are required to form business. This is representing through its name "partnership". In India firm registration governs according to the provisions of Indian Partnership Act, 1932.

Here we are going to discuss about the benefits of Firm registration in India. Different business registration types have their own benefits but Partnership Firm Registration has some slightly different benefits which helps MSMEs most. Some of the major benefits are as –

  1. Easy to start- In comparison of Private Limited or other MCA Registration, Firm Registration is much easy. Here you just have to draft a partnership deed and register it with registrar. No further formalities are required.
  2. Name availability- Unlike Private Limited Company or OPC, here you can register any business name according to your wish. No issue will arise if already business is registered with nearby name. However in Act, there are certain provisions also laid which need to comply while submitting for Online Firm Registration.
  3. Startup India Registration- If you have registered partnership fir you may apply for start up India Recognition or DIPP Certification. According to the definition of start up recognition a Partnership firm also may apply for start-up India Registration, if it is registered.
  4. Risk Sharing- In Partnership Firm Register you are not individually liable for any kind of risk, if arises. Other partners will also be liable for sharing of losses according to the agreed terms in Partnership deed.
  5. No Mandatory Compliance - In Online Firm Registration no compliance are required. According to the provisions of Indian Partnership Act, 1932 you have an option for filing annual return of your Firm Registration. However if you not filed no penalty will attract.
  6. No statutory audit – In Online Partnership Firm Registration does not require statutory audit by Chartered Accountants. However it cannot said that Partnership firm registration if completely free from it. As per provisions of Income Tax Act, 1961 if your partnership firm registration cross a particular turnover, in such cases audit by CA is required.
  7. Easy closer option- In case if you do not wish to continue your partnership firm registration. You have to surrender your partnership firm with registrar after clearing all assets and liabilities in firm. A simple declaration is required to make before registrar for winding up of partnership firm registration.

For getting more details over partnership firm registration do connect our Chartered Accountants or Company Secretaries or Advocates at 9625279785 or 9267941961 or you may write us at info@legalpillers.com. Do connect us for getting any kind assistance over CA Services in India.

About the Author

Partnership firm registration contains various benefits which helps a start-up in so many ways. A Partnership firm registration is very popular type of business registration in India.

Rate this Article
Leave a Comment
Author Thumbnail
I Agree:
Comment 
Pictures
  • Guest  -  4 years ago

    osm post thanks

Author: Aditi Singh

Aditi Singh

Member since: May 30, 2020
Published articles: 1

Related Articles