The government is providing many benefits via the Startup India scheme. Learn how to register a partnership-based startup and avail those benefits.
Overview:
Looking to establish a partnership-based startup? It’s a commendable decision, and we strongly recommend registering it. While partnership business registration is optional in India, there are specific benefits exclusive to registered businesses. This article addresses a common query we receive: “How do you register a partnership-based startup?”
Step-by-Step Guide for Registering a Partnership-Based Startup in India
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Registration as a Partnership-Based Business
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Step 1: Choosing the Business Name
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Ensure your partnership business name is unique. Check for name availability with the help of company name and trademark experts at Vakilsearch.
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Step 2: Draft the Partnership Deed
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The partnership deed registration should outline essential details like the firm’s name and address, partners’ capital contributions, profit-sharing ratios, and procedures for partner events.
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Step 3: Execution of the Partnership Deed
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Once the partnership deed is finalized, it should be signed by all partners, and witnesses, stamped, and notarized.
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Step 4: Preparation of Documents
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Gather necessary documents, including the application form, affidavit specimen, certified partnership deed copy, PAN cards of partners, identity proofs, GST registration certificate, and more.
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Step 5: Submission of Registration Application
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Submit the application form, required documents, and fees to the Registrar of Firms (RoF) office in the respective state.
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Step 6: Approval & Issuance of Registration Certificate
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The RoF will review the application, and upon approval, a registration certificate will be issued via the business’s official email.
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Registration as a Startup with StartUp India
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- Step 1: Visit the Startup India registration page
- Step 2: Fill in the startup details.
- Step 3: Enter the OTP sent to your email and mobile.
- Step 4: Click “Submit” to create your Startup India profile.
- Step 5: Obtain Recognition from DPIIT
- Visit your profile, click “Dashboard,” then “DPIIT Recognition.” Complete the ‘Startup Recognition Form’ and upload necessary documents.
- Step 6: Upload Required Documents
- Upload PAN card, partner details, website link, pitch deck, startup registration certificate, trademark/patent details (if available).
- Step 7: Receive Recognition Number
- Upon successful submission, receive a recognition number. The recognition certificate is issued after document validation, usually within two days.
This comprehensive process ensures your partnership-based startup enjoys the benefits of both partnership registration and recognition under StartUp India.
FAQs
Is a partnership easy to start?
Yes, partnerships are relatively easy to start compared to other business structures.
What is the minimum capital for a partnership firm?
There is no specified minimum capital requirement for a partnership firm. The capital can be decided by mutual agreement among the partners.
How is a partnership firm formed?
A partnership is formed through a partnership deed, which outlines the terms, conditions and responsibilities of each partner.
How do you earn money in a partnership?
Partners earn money through their share in the profits of the business, as agreed upon in the partnership deed.
What are the disadvantages of a partnership?
Disadvantages of a partnership may include unlimited liability, the potential for conflicts between partners and the lack of legal status.
What is the minimum age for partnership?
There is no specific minimum age for entering into a partnership, but legal capacity is required.
What is the profit limit for partnership firms?
There is no specific limit on profits for partnership firms. Profits can be distributed according to the terms of the partnership agreement.
How many minimum members are in a partnership business?
A partnership must have a minimum of two members to be formed.
Can a partnership be formed without capital?
Yes, a partnership can be formed without a specific capital requirement. The capital contribution can be decided by the partners.
What documents are required for a partnership?
The primary document required is the partnership deed, and other documents required for a partnership may include PAN cards, address proofs, and registration documents.
What are the types of partners?
Types of partners include general partners, limited partners, active partners and sleeping partners.
What are the advantages of a partnership?
Advantages of a partnership include ease of formation, shared decision-making, and the ability to combine different skills and resources.
Can partners be paid a salary?
Partners are not typically paid a salary, but they share in the profits of the business.
Do partners get profits?
Yes, partners receive a share of the profits based on the terms outlined in the partnership agreement.
How do owners get paid?
Owners, in this context referring to partners, receive their share of profits, and the mode of payment is determined by the partnership agreement.
