Easy company incorporation, profit and loss sharing, minimum compliance, and economical maintenance. These are the benefits of registering a partnership business.
Choosing the right business structure is integral to ensuring business success. This is because the rate of taxation, frequency of returns filing, and the stringency of compliance measures are all determined by the business structure. An affiliate business is best suited for small companies that intend to stay small. It is a suitable option for such enterprises because of the simplicity of its setup, low cost and minimum compliance requirements. The rules on affiliate company incorporation in India are prescribed under Section 58 of the Indian Partnership Act, 1932. This Act also governs the rights and obligations of the partners among themselves, as well as the various legal relationships between partners and third parties that arise as a result of the establishment of such an affiliate. Here’s a deeper look at the Affiliate Business In Tamil Nadu company incorporation process in Tamil Nadu
Registrar of Partnership In Tamil Nadu
The affiliate agreement must be filed with the Registrar. This is because an affiliate business operates in accordance with the rules and regulations outlined in the affiliate agreement. Furthermore, the partners decide on the division of roles, responsibilities, and profits on the basis of this document. Hence, drafting a affiliate agreement is a crucial step for company registration process.
Here’s a look at everything a affiliate agreement must address in order to register a affiliate company incorporation in India –
- Name of the business
- Address of the business
- The contractual period of the affiliate
- Name and identify proof of each partner
- Duties of each partner
- Roles and responsibilities of each partner
- Initial investment from each partner
- Profit/loss sharing ratio
- Additional information to be included:
- Salary and commission of each partner
- Procedure to be followed in case of death or retirement of a partner
- The procedure to introduce or remove a partner, and
- lastly, the procedure to be followed while auditing
The affiliate agreement must be drafted in a particular format under the guidance of a professional lawyer. Furthermore, the agreement must be transcribed onto a stamp paper of the appropriate value. Following that, you must obtain the signatures of all partners. Also note that a copy of the affiliate agreement should be retained by each partner, while the original should be stored in the custody of the company.
Affiliate Company Incorporation in Tamil Nadu – Required Documents
Keep the following documents handy for registering a business in Tamil Nadu –
- Copy of the original affiliate agreement
- PAN card of the business
- Address proof of the business (lease agreement/NOC from owner/property papers)
- Attested address proof of all the partners
- Attested ID proof of all the partners
- Affidavit certificate stating all details furnished are true and correct to the best of the partners’ knowledge and belief.
- Affidavit declaring that the partners intend to become a partner
- Authorization letter in case the partners wish to authorize a third party to conduct the registration and witness signing process on their behalf
- A signed copy of Form 1 in case registration was done online
- Acknowledgment slip of the Affiliate Company registration fee payment
Register Your Business: Partnership Firm Registration
Affiliate Company Incorporation In Tamil Nadu
- First and foremost, choose a simple, memorable, and yet distinct and relevant name for your company. Avoid choosing names that are already being used by other companies, as your registration may be denied on that count
- As soon as you come up with a name or logo for your business, register a trademark to avoid copycats and protect your business against infringement
- Next, you will have to draft an Affiliate agreement. Our experts can get one drafted for you right away! Get in touch with us today
- After signing and executing the deed, the partners must obtain a PAN card for the affiliate business
- Next, the affiliate business must begin the process for incorporation
- After filling the form, all the partners must sign it in the presence of a notary who will notarize the signatures. The incorporation of affiliate business in Tamil Nadu can be done online, as well
- Next, you will have to locate the nearest Registrar of Companies and submit the application along with the mandatory supporting documents
- After verification by the Registrar, your affiliate business will be formally registered, and you will receive an intimation regarding the same via email
- Within a week, you will also receive your certificate of affiliate company incorporation via mail.
Please note that the above-mentioned steps are an extremely simplified version of the affiliate business incorporation process. Get in touch with our legal experts to ensure a hassle-free execution of affiliate business incorporation in Tamil Nadu.
Get Assistance From Vakilsearch
Once you get in touch with us and intimate us of all your needs and requirements, we will draft the affiliate agreement for you within just 4 working days. We will also do up to two rounds of iterations, if you change your mind about the details, at no extra cost.
Once the affiliate agreement is registered according to the prescribed format, we will then proceed to register the affiliate business on your behalf. We will also remain in constant touch with the authorities to ensure that your affiliate company incorporaion: https://msmeonline.tn.gov.in/ gets processed as quickly as possible.
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