Partnership firm registration is first step to start your business Journey. Partnership firm is result of when two or more people come together with aim to earning and sharing profit. Partnership firm are registered and monitored under Indian Partnership Act 1932. Partners work in firm as per their roles and responsibilities. As per partnership deed partners share profit and loss from firm. After sole proprietorship , Partnership firm is one of popular form of business structure in India. Partnership firm can be registered partnership firm or unregistered firm. Its not compulsory to register partnership firm in India. Its Partners responsibility to follow compliance’s applicable to Firm. Right from Shop Act registration to Annual Income tax filing of firm , partners need to take care to these complaisance.
In This article we discussion about Post Registration Compliances for Partnership Firm such as Shop Act Registration , GST Registration etc. And penalty applicable for non compliance.
Partnership firm get registered when Firm deed get executed between partners. There are two type of Partnership firm , one is registered Firm and second is unregistered firm. Key difference between registered and unregistered firm is submission of firm deed to Registrar of Firm (ROF). For registered Partnership firm in Maharashtra they need to submit firm deed to ROF along with Filing Form A.
Every Partnership firm need to apply for PAN & TAN after partnership registration. In India only for Private Limited companies PAN & TAN is issued at time of registration. Procedure to apply PAN & TAN of firm is online and manual. On behalf of firm partner shall make application to NDSL department. Along with PAN & TAN Application , firm need to submit photo copy of Partnership Deed. PAN Number is important for Partnership firm annual Tax return filing , GST Registration etc.
Partnership Firm Seal: Firm Seal is rubber stamp of Partnership Firm. This Firm seal have two format one is Name of firm and Firm Name with Partner. This Stamp/seal is required post Partnership registration for bank account opening, affix on legal documents , agreements etc.
Partnership Firm Letter Head: Prepare the Partnership Firm stationery like letterhead, invoice, official documents, etc., with the Partnership Firm name and registered office of the Partnership Firm.
Post Partnership Firm Registration , its important to apply for a current account opening in name of firm. Partnership Firm can open bank account any in any bank. Partners are responsible to open a firm current account and carry all firm business transaction from that bank account. Post firm registration apply for bank account opening is applicable compliance from Partnership firm.
Post Partnership Firm registration, compliance is partners shall deposit there monetary contribution in Firm. At time of registration of firm , partners decide about capital contribution to start firm. For keeping such capital contribution transactions transparant between partners , should deposit from there personal saving account via electronic / chque transfer. Capital deposited in firm get recorded in firms annual balance sheet.
For Annual Partnership Firm compliances & Income Tax Return filing , Firm need to maintain books of account. As per Income Tax Act firm can choose to maintain accounting in cash / accrual basis. Firm can maintain books of account manually or in computerized software. Common types of books of account of Partnership Firm is as below
Business need to have Shop Act license Registration it is a primary proof of existence of business. Shop means a premises where goods or services or both are sold which includes offices , store room , warehouse. No child labor is allowed to work. Hence as per state Government Law its mandatory compliance to apply for Shop Act Registration of firm. From state to start registration provisions may change. Also known as Gumastadhara. If Partnership Firm having different office With in state or out of state firm shall apply separate shop Act registration. Content of Shop Act as below
MSME development Act for SME benefits. MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy. Where Partnership firm Apply for any bank loan , MSEM registration certificate helps to get bank loan at reduced rate. Even for filing government tenders MSME registration is required.
Professional Tax is registration is payment of tax to state government. Partnership firm when hire employees it comes in relation of employer and employee. Under professional tax every firm need to apply for registration as per state government rules and regulation and make timely payment of taxes. If Firm having branches in different states then , this registration need to be applied state wise.
Every business with annual turnover exceeds Rs. 40 lakhs or Service providers 20 lakhs is required to GST Registration under Goods and Services Tax (GST). However this registration can be applied suo moto. Where Partnership firm finds that post registration , GST Registration is important for business then can apply for GST registration.
Business need to get protected them self for brand, product , formula etc. Due to dynamic and aggressive businesses new startups always have risk of losing brand etc. Partnership firm who created it brand , product etc. need to get protection via IP registration. It helps in IP protection and help to business expansion.
Copyrights – If you are creating original or artistic works and content, consider protecting under Copyright. It could be a musical composition, painting, website, write-up, etc.
Patents – Do you find your product or process is true to test of invention? If yes, you must get your invention protected under Patents.
In dynamic business world for startups its important to protect there trade name. Once firm is registered it dose not mean that name of Partnership firm is protected. For business trade name become there goodwill. To protect Firm brand name ultimate protection is Trade Mark registration. Trade mark registration gives legal right to partnership firm to use name exclusively and results in brand creation.
Section 139(1) of Income Tax Act 1961 is applicable for Partnership Firm. Under income tax financial year start from April and ends at March. Annual Income tax filing compliance for Partnership firm applicable irrespective of its turnover. In annual tax return filing firm submits its annual financial transaction information to Tax department. On basis of these transaction firm pay Income Tax.
Partnership Firm Post registration few compliance are one time and few are continue in nature. Partners are responsible for maintaining compliance’s of firm.