Partnership
Overview of a Partnership
A partnership is a relationship existing between two or more persons who join to carry on a trade or business. DealTax is providing an end-to-end cooperation with partnership firms for smooth operations.
Everything you should know about a Partnership
- Partnerships are easy to start — just a partnership deed is required.
- Decision-making is quicker due to no need for resolutions.
- Easier to raise funds as banks prefer partnerships over proprietorships.
- Income is taxed as personal income—no corporate tax.
- Every partner owns and manages activities — creating accountability.
Minimum requirements to begin with a Partnership
- Minimum 2 Partners.
- PAN Card of Partners.
- Address Proof of Firm.
- Partners must be residents of India.
Compliance after Partnership Registration
TAN Registration
- Required for salary payments with TDS or if turnover exceeded the audit threshold last year.
ESI Returns
- Mandatory if the firm has more than 10 employees and is registered under ESI.
GST Returns
- Monthly, quarterly, and annual GST returns must be filed after registration.
Tax Audit
- Mandatory for firms with over ₹100 lakhs turnover.
Income Tax Return Filing
- Without audit: File by July 30th.
- With audit: File by September 30th.
FAQS
Partnership
Partnership
Annual filings, Income Tax return, GST, and other taxes (if applicable). No MCA annual report filing required (unlike LLP).
Yes, for startups under the Startup India scheme or e-commerce. Also required in special category states once turnover exceeds ₹20 lakhs.
If a Partnership falls below 2 partners (due to resignation or death), it is dissolved — unlike LLPs.
Minimum two partners needed. Start with PAN Card and address proof.
Yes, and it involves less paperwork and complexity.
No, there’s no minimum capital requirement.
Audit isn’t mandatory unless turnover exceeds limits under the Income Tax Act..
A suggested firm name must have a Brand Name, Business Activity, and Title. Registrar of Companies checks for name guidelines.