Setting Up a Partnership Business
Setting Up a Business as a Partnership
A Partnership business is ideal if 2 or more people or Business Individuals are involved in the business. If its just one person running this type of Enterprise, then setting up a Sole Proprietor Business would be a better Business to set up.
Benefits and Features of Setting Up a Business as a Partnership
- Legal Entity
- A Partnership Business is not its Own Legal Entity. To have a business with similar traits but to be its own Legal Entity, it would be handy to consider setting up a Limited Liability Partnership.
- The People Involved in a Partnership Business
- Two or more people / enterprises, they would also represent the Business
- Is there any Capital Requirement?
- Compliance Level
- Registration Provider
- Time it takes to Set Up
- 2-14 days depending on the local Registrar
- The Business Owners/Individuals and/or Enterprises comprising of the Partnership Business would be totally liable (individually and collectively) totally Liable for the Actions and Consequences of the Business, in all agreements, contracts and in cases of debts or deficits
- Protection of Name
- The Registrar would allocate your Partnership name to you so that no one else can set up with the same name, you may also apply to Register your Trademark and to Copyright your Intellectual Property
- Do you have to File Income Tax?
- For this kind of Business, filing of Annual Income Tax of the Business Owners/Enterprises would be required.
- What Form of Taxation is based on a Partnership Business?
- What are the Applicable Taxes?
- The Partnership Business is taxed on the Profits of the business if the Turnover of the business is under Rs.1,00,00,000/- (Ten Million Rupees / 1 Crore). Once this amount is exceeded in Turnover, 1.25% of Turnover is Taxable. The People/Enterprises comprising of the Partnership Businesses would, in this instance, not be taxed separately.
- Are Audits of Accounts Necessary?
- No, they are not compulsory
- Are filing Returns with Regulators Necessary in a Partnership Business?
- Are Meetings Mandatory in Such Businesses?
- No, not at all, however it is advisable to keep a Business Lawyer or Accountant in the loop of your business to ensure you are compliant at all times.
- Cost to Set Up this Business?
- How much would my Annual Returns Cost?
- The Starting Price of your Annual Returns would be Rs.10,000/- and would vary depending on how the books are kept and the amount of Paperwork our Accountant would have to go through
- Can I Set This Up Online?
- Yes, Absolutely! We can handle the whole process from start to finish. We would Either ask you to come to our office or post you the relevant documents, and that’s it!
Setting Up a Partnership Business Online
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