Partnership Firm Registration and Annual Compliances

The Indian Partnership Act of 1932 governs partnership firms in India. The Indian Partnership Act of 1932[1] defines partnership as “a relationship between people who have decided to share the profits of a business carried on by all or any of them acting for all.” A partnership firm is formed when two or more people come together to run a business as co-owners. All firm partners share profits and losses in proportion to their respective owners or as negotiated between them. Partnership firms arose from the limits of single proprietorship businesses.

BENEFITS OF PARTNERSHIP FIRM ANNUAL COMPLIANCE

– Completing compliance on a regular basis demonstrates the partnership firm’s legal credibility.

– Penalties that are both complex and severe are avoided.

– Due to a clean compliance history, there are more chances for borrowing financing.

– Due to a strong image in the legislation, instant approval from joint ventures and overseas entities.

– Protection from personal tax implications and harsh penalties, as well as income tax inquiries.

ANNUAL PARTNERSHIP COMPLIANCE DOCUMENTS

• Purchase and sales invoices from the previous year.
• Expense invoices from the previous year.
• If expenses are spent on behalf of the firm, credit card statements are required.
• Bank statements for all bank accounts in the name of Partners from April 1 to March 31.
• GST returns that have been filed (If Any).
• TDS Challans Deposited in Copy (If Any).
• a copy of the TDS returns that have been filed (If Any).