Registered and Unregistered

The difference between registered and unregistered partnership firm:

A partnership firm shall be called as registered partnership firm, wherein the partnership deed is registered with a registrar of firms formed under the State government and complied all and necessary procedural formalities such as filing of return etc. as required under law.

Unregistered partnership firm shall different tax treatments under the incomes Tax Act.

The benefits of registering a partnership firm are mentioned in Sec 69 of the Indian Partnership Act and they have been explained below:-

Minimum two persons - To form a partnership firm, minimum two persons are required. However, it completely depends on the applicant how many partners he/she is willing to work with. One can increase the number of partners but two persons are sufficient to start a Partnership firm in India.

Shared responsibilities and duties - Every partner in the firm has certain specified duties. The duties and responsibilities of the partners are shared.

Easy formation - Because of less documentation and minimum legal formalities, registration of partnership firm as well as its formation is pretty easy.

No annual returns - Unlike other business entities such as Private Limited, Public Limited and One Company Limited Companies where you have to file annual returns, in Partnership Firms, there is no need to file annual returns.

Less compliances and regulations - When compared to companies and LLP, the compliances and regulations in the case of a partnership firm are considerably lesser.

Better management - It is easier to manage the operations of partnership firms as all the partners take interest in everyday business affairs because of profit, control, and ownership.

Documents required for One Person Company Registration

1. Pan Card – PAN Card of Partners.

2. Identity Proof – Aadhaar Card of Partners.

3. Company Name

4. Registered Office Address

5. Share Capital Amount

6. Profit Ratio

7. Main Objective of Business