Partnership Firm

What is a partnership firm?

According to the "partnership act" 1932, the term partnership is defined as the relationship between individuals who agrees to share their profit in the decided business.

Partnership firms are preferred by the majority because their structure is more flexible. Similarly, it is more symmetrical.

To incorporate a partnership firm at least two individuals are required. But, the maximum is 20. Further, the shares will be divided amongst the partners according to the capital they have invested. Assuredly, partnership firms do not have a limited liability structure just like a sole proprietorship.

Partnership firms are divided into two classes, register and unregistered. But, in both types of partnerships, a partnership deed is compulsory. Specifically, a partnership deed is a document that is signed and agreed upon by all partners. Further, the document consists of regulations, obligations, rights, and conditions related to the business. So, this document can be prepared by a legal advisor/lawyer. Although, it is not necessary to register a partnership firm, yet the registration adds to the advantages of the business.

Spectrum Consultancy provides leading company registration services throughout Pakistan. We offer all types of company registration starting from a sole proprietorship to private limited, public limited, one person, partnership firm, limited liability, a foreign company, and more. On average, we incorporate a company in 5-10 days. However, it relies upon the type of company, government procession period, and customer documents submission. Despite, you can set an appointment with our expert legal advisors if you need any type of consultation regarding the partnership firm and other businesses.

The first step is to check the company name availability. If there is no objection submitted, then your company registration will proceed. Otherwise, you will have to submit the request again. After the name check, you will have to fulfill the requirements of SECP which are mentioned below

In Pakistan, a minimum of two and a maximum of twenty individuals can start a partnership firm. The partners should be over 18.

Requirements for partnership firm registration

Full name, address, occupation, and father or husband's name of all partners
CNIC copies of all partners
Partnership deeds on stamp paper (described above)
Address proof of business / Rent deed of the business
Partnership fee copy which needs to be deposited at the national bank of Pakistan
All partners have to sign the deed in the presence of an authorized officer or a registrar NTN
Bank account in the business name
Accounting records of the firm

Time Duration

It takes usually 10-15 days for registration of a partnership firm. But, it greatly relies upon the government processing time and client document submission time.

After doing registration, you will receive the registration documents from the department. So, after that, the next step will be NTN It will help you in opening a bank account.
After registration, you may require to register your business with some other concerned departments such as taxation departments, food departments, chamber of commerce, custom department, Pakistan software engineering board, Pakistan engineering council, etc. It depends upon your business type. You may contact our experts to get a consultation about your business registration in Pakistan.

After registration of the company, you will proceed for a bank account opening. To open a bank account, you will need a NTN. You will have to take the NTN and registered documents of the company.

Do I need a GST?

If you are a

Trader
Wholesaler/Distributor
Dealer
A service provider (courier, hotel, shipping, etc)

If your business

Has a turnover of more than 10 million
Utility bills exceed 8 lac
Has different branches
Is in a shopping mall

Then you must get a GST registration number. Otherwise, it will be a violation of the law. But, you don't have to worry about that. We will provide you complete consultation about business formation. Here is a complete guide of GST.

Do I need to do PSEB Registration?

If you have a

Call center

IT company

so you should do PSEB registration. For call center it is mandatory otherwise you can not operate in Pakistan, But, if you have an IT company then you should also register, so it will allow you to avail the tax exemption. We offer consultation for all kinds of business, so contact us now and we will give you a complete guide.

For more information about partnership firms, such as it's benefits, disadvantages, and history you should read our blog! We are committed to giving you a complete guide and awareness. Starting from company name search to registration, incorporation, and further processes we are always here! If you want to make a Partnership Firm, you are just a call away from that. So, take out your phone and dial now: 03222812976 If you want to have a meeting, you can visit our office from noon to 7 PM (Pakistani time)! We are open every day except Sundays. Also, you should know that we won't ever overburden our clients. Spectrum Consultancy is a combination of quality and cheapness.