A partnership (also known as a Firm / Form C) is a business structure that works just like a sole proprietorship, but with several individuals running it. The general partners share the profits and / or losses depending on their agreement. They share control and liability for business operations. Partnership taxes are paid by the general partners on their personal tax returns, in proportion to their share of ownership as per their agreement. Partnerships require partnership agreement on a legal stamp paper that clarifies the relationship between the partners, their roles and responsibilities, and their shares in the profits or losses of the partnership. There is unlimited liability in this type of business. If one partner is sued, all partners are held liable. Another disadvantage is that the decision making is shared among the partners and hence no one individual has control. A partnership is different from sole proprietorships and limited companies. Not sure about which business structure to choose?
In order to register a partnership all you need to do is submit the following documents to the office of the Registrar of Firms in your City/District:
- (1) Written Partnership deed on a Rs. 1,000 stamp paper (should be prepared by a lawyer-we can do this for you).
- (2) Filled form.
- (3) Bank challan.
- (4) Rent agreement for office in a commercial area along with proof (rent agreement or property ownership papers).
- (5) CNIC’s of all partners along with CNIC of all witnesses. There should be one witness per partner.
- (6) Affidavit regarding accuracy of submitted papers
- (7) Copy of all the above documents duly notarized by a notary public.
- (8) The partners along with witnesses will have to physically present themselves in front of the Registrar of Firms.
- (9) After a week, you will receive a certificate from the office of the Registrar of Firms. Congratulations! The partnership firm has been registered.
- (10) Next step is to setup a bank account in the name of your newly formed partnership followed by registering for an NTN and GST Number (Tax).
Still need help? Our partnership registration services start as low as Rs. 20,000 Rs. 15,000* only. Call us on 0345-1234-867 or email us. We make sure that our customers always get served quickly and effectively without charging a fortune other lawyers and agents would otherwise charge.
Documents we require:
- Proposed name of your firm.
- Nature and scope of business.
- Full name and colour CNIC copies of partners.
- Full name and colour CNIC copies of witnesses (one witness per partner)
- Investment amount by each partner (in Rupees).
- Electricity bill (commercial meter).
- Partnership Deed on Rs. 1,000 stamp paper (we will draft this for you).
- Rent agreement of office (in commercial area).
- Residential addresses of all partners.
- Partners and witnesses have to physically visit one day to present themselves in front of Registrar of Firms (there is no exception to this rule).