A partnership firm is an organization which is formed with two or more persons to run a business with a view to earn profit. Each member of such a group is known as partner and collectively known as partnership firm. These firms are governed by the Indian Partnership Act, 1932. It is a Central Act but administered by State. In a unique feature, all partners have unlimited liability in the business. The partners are all individually and jointly liable for the firm and the payment of all debts. This means that even personal assets of a partner can be liquidated to meet the debts of the firm. It may be for temporary purpose or permanent. A partnership deed can be entered as such. The words LLC, Inc, PJSC, GMBC, PTE LTD, PVT LTD & LTD are not allowed to be used at the end of the firm's name. Certain words are prohibited in the firm name Ex: India, one can refer Prevention of Names and Emblems Act.
Firm registraton is not mandatory, with out registration also, we can apply pan card and run the business. It may be registered with the District Registrar office so as to show their customers that their business is registered. It is preferable for a small business owners where more capital is not required.
Your proposed firm's name should be unique, it should not be similar to an already registered firm. You should thoroughly check the status of Name Availability before making an application. The firm name should contain Key or Coined word and Object of Entity. The following table shows an example:
Our Firm Registration Consultants will help you in getting your Firm registered. Once you get your Certificate of Registration, we will provide you all the documents required for opening Firm's current banking account. You can then open your account and deposit the Capital contribution amount and start your business.
You need to register with other departments depending on the nature of business your Firm carries. For example if you are a taxable dealer of supply of goods or services, you need to register under Goods and Services Tax Act, if you are an importer or exporter, you need to get Import Export Code (IEC) with the office of Director General of Foreign Trade (DGFT) etc.