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When an Operational Company starts another company under its brand name at different locations to expand its business is considered as a Parent Company, while the newly established company is known as its Subsidiary. Registering a Subsidiary company in a Foreign country is known as Foreign Subsidiary Registration. The registration process for each foreign subsidiary company varies depending on the country where it's going to be registered. Let’s understand the requirements in detail to start a Foreign Subsidiary Company in India.
Registering a Partnership firm offers multiple benefits which are as follows:
Partnership Business offers quick decision-making along with mutual decision, making it a more mindful decision.
Partnership Business allows more capital through different partners as compared to a sole proprietorship. It also allows additional partners to raise capital.
Partnership Business is not liable for Corporate Tax, while profit is taxed at the individual level, resulting in a lower tax burden.
Partners use to share the profit & loss in an agreed ratio, which reduces the risk of loss on certain individuals and provides a safety net in challenging times.
Partnership Business has fewer compliances as compared to a Private Limited Company or Limited Liability Partnership business structure. It does not require any DSC (Digital Signature Certificate) or DPIN (Designated Partner Identification Number), making it easier to operate.
Multiple partners have multiple skills, which can together make it more resourceful and enhance its overall capabilities.
A Partnership firm is easy to incorporate as it includes fewer formalities and can be started by just drafting & notarizing the Partnership Deed with the respective state’s registrar. Partnership Firm Registration cost is affordable, and addition/removal of any partner can be completed easily.
Check out the step-by-step procedure for Quick & Easy Partnership Firm Registration with Startup Movers\
In order to register your Partnership Firm, the first step is to choose a name that should be unique. Also, make sure the name does not contain words like emperor, crown, empire, or any other words that present Government support or approval.
Once the name is selected, file the application for Partnership Registration. Form 1 has to be submitted to the registrar of firms in which state the firm is registered. This form includes details of the business, including the name of the firm, place of business, date of partners’ joining, name & address of partners, duration of firm, etc.
Once the application has been submitted, it will be reviewed by the registrar. On the final approval by the registrar, you will receive your Certificate of Registration and a sealed partnership deed at your registered office address.
Refer following checklist of all the documents required for Quick Partnership Registration:
Before applying for Partnership Firm Registration, there are some eligibility criteria that should be met and it includes:
In a Partnership Firm, there must be a minimum of two partners to operate the business, while maximum it can go up to 20 partners.
There must be at least one Indian Resident to register a Partnership Firm in India.
To run a partnership business, a well-structured Partnership Deed should be prepared, including the roles and responsibilities of each partner.
All the Partners in Partnership firms must be above 18 years at the time of Partnership Registration
There must be a physical office address where the partnership business is to be registered. This space can be a lease agreement, rental contract, or virtual office space.
A Partnership Business must have its PAN Card and a Bank Account to operate its business activities.
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| Feature | Partnership Firm | Private Limited Company | Limited Liability Partnership | One Person Company | Proprietorship Firm |
|---|---|---|---|---|---|
| Applicable Law | Indian Partnership Act, 1932 | Companies Act, 2013 | Limited Liability Partnership Act, 2008 | Companies Act, 2013 | No specified Act |
| Registration | Optional | Mandatory | Mandatory | Mandatory | No |
| Number of Owners | 2 - 50 | 2 - 200 | 2 - Unlimited | Only 1 | Only 1 |
| Separate Legal Entity | ✓/td> | ✓ | ✓ | ✓ | ✓ |
| Liability Protection | Unlimited | Limited | Limited | Limited | Unlimited |
| Statutory Audit | Not Mandatory | Mandatory | As Applicable | Mandatory | Not Mandatory |
| Ownership Transfer | ✓ (Restricted) | ✓ | ✓ | ✓ (Restricted) | ✗ |
| Perpetual Existence | ✗ | ✓ | ✓ | ✓ | ✗ |
| Foreign Ownership | ✓ | ✓ | ✓ | ✗ | ✗ |
| Taxation Liability | High | Moderate | High | Moderate | Low |
| Compliance Requirement | Low | High | Moderate | High | Low |
| Get Started | Know More | Know More | Know More | Know More |
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Your concerns matter: Explore our FAQs for guidance!
A partnership deed is a legal document that outlines the terms and conditions of the partnership, including profit-sharing ratios, roles, and responsibilities.
While not mandatory to register, it is highly advisable to have one to prevent disputes.
Yes, foreign nationals can be partners in an Indian partnership firm, but they must comply with the Foreign Exchange Management Act (FEMA) and other relevant regulations.
The registration process typically takes about 15 to 30 days, depending on the efficiency of the Registrar’s office and the completeness of submitted documents.
Yes, many states in India offer online registration of partnership firms. You can fill out the required forms and submit documents through the state government’s official portal
Not registering can lead to personal liability for partners, lack of legal recognition, and difficulties in enforcing rights or claims against the firm.
Yes, you can modify the partnership deed, but the changes must be documented and agreed upon by all partners. A revised deed should also be filed with the Registrar if necessary.
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