Easily Maintain Partnership Compliance

Partnership firms are required to maintain compliance under various regulations like LLPs and Company. IndiaFilings offers an easy process for maintaining partnership compliance from Rs.9899/-

From Rs.9899 /- all inclusive fees
EMI: Rs.884 for 12 months*

Partnership Firm Compliance

Partnership firms are required to maintain compliance like LLPs and Companies registered in India. Partnership firm compliance mainly includes filing of income tax return, while corporate entities like LLP and Company require both income tax return filing with the Income Tax Department and annual return filing with the Ministry of Corporate Affairs. Partnership firms having annual turnover of over Rs.100 lakhs are also required to obtain a tax audit.

In addition to the basic compliance, partnership firms may also be required to comply with TDS regulations, GST regulations, VAT / CST regulations, Service Tax regulations, ESI regulations and others. The compliance requirement for a business would vary based on the type of entity, industry, state of incorporation, number of employees and sales turnover.

IndiaFilings is the largest business services platform in India, offering a variety of services like partnership firm compliance, LLP registration, trademark filing, GST registration, income tax filing and more. IndiaFilings can help you maintain compliance of your partnership firm. Get a free consultation for partnership compliance maintenance through IndiaFilings by scheduling an appointment with an IndiaFilings Advisor.

Major Compliances for a Partnership Firm

Income Tax Filing

Income tax filing must be filed by all partnership firms. Partnership firms having over Rs.100 lakhs of annual turnover are required to complete tax audit.

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GST Filing

Under the GST regime proposed to be rolled out in 2017, partnership firms having GST registration would be required to file monthly, quarterly and annual GST returns.

TDS Filing

Quarterly TDS returns must be filed by partnership firms that have TAN and are required to deduct tax at source as per TDS rules.

ESI Return

ESI return must be filed by all partnership firms having ESI registration. ESI registration is required once the partnership firm employs over 10 employees

Service Tax or VAT

In case a partnership firm has service tax or VAT registration, it must file the respective returns. Service tax returns are due half-yearly while VAT return due date changes from state to state.

Identity and Address Proof

Identity and address proof will be required for all directors and shareholders of the company to be incorporated. In case of Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarised copy of passport must be submitted mandatorily. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.

Registered Office Proof

All companies must have a registered office in India. To prove access to the registered office, a recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.

Documents Required for Partnership Firm Compliance

What is a partnership firm?

A Partnership is the relation between persons who have agreed to share profits of the business carried on by all or any of them acting for all. Partnerships are a very good form of business entity for small enterprises wherein more than one person decides to contribute in a partnership and share the profits. In India, Partnerships are widely prevalent because of its ease of formation and minimal regulatory compliance.

What are the types of partnership firm?

There are two types of Partnership, registered Partnership and unregistered Partnership. In terms of the Indian Partnership Act, 1932, (Act), the only criterion to commence business as a partnership is the finalisation and execution of a Partnership Deed between the Partners. The Act does not require the Partnership Deed/Partnership Firm to be registered and in other words does not require the Partnership Firm to be a registered Firm. Therefore various partnership businesses exist as an unregistered Firm without impacting the business of the Firm.

What are the disadvantages of an unregistred partnership firm?

There are no penalties for non-registration of a partnership firm and a partnership firm can even be subsequently registered after formation. However, unregistered partnership firms have certain rights denied in Section 69 of the Partnership Act, which deals with the effects of non-registration of a partnership firm. Some of the disadvantages of an unregistered firm are: i) A partner of an unregistered firm cannot file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act, ii) no suit to enforce a right arising from a contract shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered, iii) an unregistered firm or any of its partners cannot claim a set off or other proceedings in a dispute with a third party. Therefore, it is advisable for any partnership to be registered sooner or later.

How to register a partnership firm?

A Partnership firm can be registered under Section 58 of the Indian Partnership Act at any time, even subsequent to formation. The registration of a partnership firm is done by filing an application with the Registrar of Firm of the area in which any place of business of the Partnership Firm is situated or proposed to be situated. When the Registrar of Firms is satisfied that the provisions of Section 58 are duly complied with, a record of entry of the statement is made in the Register of Firms and Certificate of Registration is issued. The application for registration of Partnership Firm must contain the prescribed registration form for incorporation of a company, certified true copy of the Partnership deed entered into and ownership proof of the principal place of business.

What are the advantages of a partnership firm?

One of the main advantages of a Partnership Firm is that there are very minimal requirements in terms of compliance. For instance, a Company requires annual filing of its financial statements with the Registrar of Companies and the part of the financial statements of the Company are made public documents. On the other hand, registered/unregistered Partnership Firms are not required to file any annual returns / the Firms financial statements with any Regulatory body. Therefore, the financial statements of a Partnership Firm are not available in the public domain. Also, the accounts of a registered / unregistered Partnership firm are not required to be audited.

What are the disadvantages of a partnership firm?

Partnership firm do not provide its Partners with limited liability and do not have a perpetual existence. Also, the interest of a Partner in a Partnership firm is not easily transferrable and the ownership structure is not conducive for Private Equity Investors. In addition to being tougher (almost impossible) to obtain private equity investment in a partnership firm, it is also harder for Partnership Firms to obtain loans from Banks & Financial Institutions. Banks / Financial Institutions prefer to lend to Companies than Partnership Firms as Companies are separate entities and the regulatory requirement for financial reporting of Companies, makes Companies more transparent and structured.

How are partnership firms taxed?

Partnership firms may be assessed either as a partnership firm or as an association of persons(AOP). Interest paid to partners, salary, bonus, commission, or remuneration to a partner will be allowed as a deduction if it is paid to a working partner who is an individual, when the partnership is assessed as a Partnership Firm. However, when the Partnership Firm is assessed as an AOP, the above deductions cannot be claimed. Therefore, for a partnership firm it is more advantageous to be assessed as a partnership firm than as an AOP.

What is the requirement for being taxed as a partnership firm?

For a Firm to be assessed as a Partnership Firm, the Partnership Firm should be evidenced by a written partnership deed, individual shares of the partners should be very clearly specified in the deed and a certified copy of partnership deed must accompany the return of income of the firm of the previous year in which the partnership was formed.

SIMPLE & TRANSPARENT PRICING

Basic

^Rs.9899/-

all inclusive fees

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Income tax return filing and compliance management for a partnership firm with a turnover of less than Rs.10 lakhs per annum.

From Rs.9899 /- all inclusive fees
EMI: Rs.884 for 12 months*

Standard

^Rs.12899/-

all inclusive fees

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Income tax return filing and compliance management for a partnership firm with a turnover of less than Rs.50 lakhs per annum.

From Rs.12899 /- all inclusive fees
EMI: Rs.1152 for 12 months*

Premium

^Rs.19899/-

all inclusive fees

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Income tax return filing and compliance management for a partnership with a turnover of less than Rs.100 lakhs per annum.

From Rs.19899 /- all inclusive fees
EMI: Rs.1777 for 12 months*

Check Company Name Availability

Check availability of company or LLP name in India against the MCA and trademark database.

How we help with partnership firm compliance

IndiaFilings.com can help file the mandatory filing for your Partnership firm and maintain annual compliance.

Free Consultation

Got questions? Request a call from an IndiaFilings Business Advisor.

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Tax Return Preparation

An IndiaFilings Compliance Expert will prepare the Tax Return for your Partnership based on the financials and performance during the previous financial year.

Verification

Once the Income Tax Return is prepared in the requisite format, the Client's Finance Team can verify the prepared return and affix the digital signature.

Filing

Once the Tax Return is prepared and verified, the Return can be filed with the Income Tax Department along with the necessary attachments.

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Easily Maintain Partnership Compliance

Partnership Firm Compliance

Major Compliances for a Partnership Firm

Income Tax Filing

GST Filing

TDS Filing

ESI Return

Service Tax or VAT

Identity and Address Proof

Registered Office Proof

What is a partnership firm?

What are the types of partnership firm?

What are the disadvantages of an unregistred partnership firm?

How to register a partnership firm?

What are the advantages of a partnership firm?

What are the disadvantages of a partnership firm?

How are partnership firms taxed?

What is the requirement for being taxed as a partnership firm?

Basic

all inclusive fees

Standard

all inclusive fees

Premium

all inclusive fees

Check Company Name Availability

Check availability of company or LLP name in India against the MCA and trademark database.

How we help with partnership firm compliance

Free Consultation

Tax Return Preparation

Verification

Filing

INDIAFILINGS

OUR MISSION

LEARNING CENTER

Vibrant Team

24/7 Support

EMI Payment

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