Partnership Firms | Legal Formalities for Starting a Business in India | Episode 3

Curious about partnership firm registration? Learn the meaning of partnership, consequences of non-registration, and the benefits of limited liability partnerships in this informative video.
Watch Previous Videos before watching this (recommended)

In our previous video, we discussed sole proprietorships and how to start a business as a sole proprietor. We also covered brand protection and the importance of applying for a trademark. Whether you operate as a sole proprietor, partnership firm, LLP, or private limited company, securing a trademark is crucial. Now, let's dive into partnership entities and their different types in India.

The video discusses how to register a partnership firm in India, covering three types: unregistered, registered, and LLP, along with trademark importance and liability differences.

Highlights
📜 Importance of trademark registration for all business types.
🏢 Three types of partnership registration: unregistered, registered, and LLP.
⚖️ Liability varies: LLP provides limited liability, while unregistered partnerships have unlimited liability.
🏦 Current account requirements for partnership firms.
🧾 GST applicability based on business activities and revenue.
💰 Income tax rates differ for partnerships and sole proprietorships.
🔍 Awareness of legal implications and documentation needed for partnership registration.

Key Insights
📈 Trademark Protection: Regardless of the business structure, trademark registration is crucial for brand protection and legitimacy in the market.
🔍 Types of Registrations: Understanding the differences between unregistered, registered partnerships, and LLP is vital in selecting the right entity for your business.
⚠️ Liability Issues: Unlike LLPs, unregistered partnerships expose partners to unlimited liability, meaning personal assets can be at risk in business debts.
🏦 Banking Requirements: A current account is necessary for partnership firms, and the documentation required will vary based on the registration type.
📊 GST Considerations: Businesses involved in exports or e-commerce must comply with GST regulations, highlighting the importance of understanding tax obligations.
💼 Income Tax Structure: Partnerships face a flat tax rate on profits, unlike sole proprietorships, which have a slab-based tax rate.
📚 Legal Awareness: Entrepreneurs must be aware of the legal implications and necessary documentation for partnership registration to avoid future complications.

In this video, we will explore the three types of partnership entities:

1. Unregistered Partnership: An agreement is notarized and filed with the Income Tax Department.
2. Registered Partnership: An agreement is registered with the Registrar of Firms.
3. Limited Liability Partnership (LLP): Incorporation is done through MCA, and an LLP agreement is filed.

Key points we'll cover include:

Trade Name: Importance of having a trade name and applying for a trademark.
Current Account Setup: Required documents for opening a current account for each partnership type.
Liability: Differences in liability between unregistered partnerships, registered partnerships, and LLPs.
Taxation: Tax rates and compliance requirements for each entity type.

By the end of this video, you'll have a clear understanding of how to choose and register a partnership entity, the importance of trademarks, and the key differences in liability and taxation.

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