A Partnership firm is an establishment or an institution, which is usually established by two individuals who are known as partners. The firm follows provisions and guidelines mentioned in the Indian Partnership Act. The act defines a partnership as a relation between two or more individuals who agree to share the profits and losses of a business. Partnership firm registration is a crucial step taken by partners to incorporate the partnership business.
One Person company was introduced in the Section 2(62). The section defines a one-person company as a private company with only one director and one shareholder. Before undertaking any business activities, the owner of the company must register for one person registration. Only after a successful registration, the individual can undertake business activities.
What are the types of Partnership Firm?
A partnership firm is categorized into several types, which will be discussed in this section:
- Sole Proprietorship
- Partnership Firm
- Corporation or Company
- One person company
- Section 8 Company
- Company Limited by Guarantee
- Public Limited Company
What are the features of a Partnership firm?
A partnership firm registration is undertaken after understanding its crucial aspects. One of them is the features or characteristics of a firm.
- Mutual contribution
- Equal distribution of profits and losses
- Mutual agency
- Limited liability
- Fewer compliances to follow
What are the benefits of a Partnership firm Registration?
A partnership firm has several advantages. It proves to benefit partners in various ways. Certain benefits that it has as follows:
- Simple form of business structure
- Easy process of decision making
- Ease of raising funds
- Easy management
What is the registration process to obtain Partnership Firm Registration?
The registration process of a partnership firm has certain steps that must be followed in an appropriate manner. The following are steps that are followed by all individuals.
- Selection of an appropriate name
- File an application
- Preparation of Partnership deed
- Submission of documents
- Issuance of registration certificate
What are the documents required for Partnership Firm Registration?
Certain documents that are compulsory for the process of partnership firm registration is as follows:
- Partnership firm registration application
- Sample of Affidavit
- Rental agreement, if the building is rented
- ID and address proof which includes PAN card, Aadhar card, Driving license, copy of voter ID, Passport.
What are post Partnership Firm Registration Requirements?
- Bank Account Opening
- Intellectual Property Registration
- Drafting Documents
- GST Registration
What is the registration process of One Person Company Registration?
The registration procedure is a significant step in the incorporation of a company. Any company, before its incorporation must register as per conditions pre -defined by the authority. A One Person Registration is compulsory for an individual and he must get his business registered within a particular time period.
- Acquire a Digital Signature Certificate (DSC)
- Obtain the Director Identification Number (DIN)
- File for Name Approval
- Prepare Memorandum of Association (MOA) and Articles of Articles (AOA)
- Signing of Memorandum of Association and Articles of Association
What documents are required for One Person Company Registration?
Some documents that are required for one person company registration are as follows:
- Preparation of Articles of Association (AOA) and Memorandum of Association (MOA)
- Affidavit copy of the director as well as the subscriber of the company
- Non Objection Certificate from the landlord
- A rent agreement, if the property is located in a rented office
- Proof of ownership, if the property is owned.
- Any utility bill such as electricity bill, telephone bill of the registered office address.
- Identity proof of the applicant(owner) such as PAN Card, Driving License
What are the benefits of a One Person Company?
- Limited liability
- No requirement of minimum capital
- Lesser compliances to follow
- Lesser legal disputes
- Complete control over the business
- Feature of Continuous Existence
- Easy to set up the company
One major element that differentiates both companies is that a partnership firm consists of a minimum of two individuals, whereas a one person company involves only one individual.
Both the partnership firm and one person company are different and work differently. The registration processes of both the companies have certain similarities and differences. The characteristics of both companies are also different. Thus, an individual or individuals must consider all the crucial aspects and then take a decision of company establishment.