HOW TO START A NEW PARTNERSHIP BUSINESS

QUESTION:

FROM- Khumesh Patle

We want to start business in partnership basis as manufacturing facility , at present I am doing service at Private company as soon as business activity start I may resign .
I have purchased land, machinery etc in my wife's name. We want to start business with my brother in law as partner so what would be steps to enter into business.
In my view first of all we have to make partnership deed and register the firm and after that we can get TIN number and other legal requirement .Can we make first deed and enter into firm.

ANSWER:

Hi Khumesh Patle,

First of all congratulation for taking a decision to start your own business. In regards to your query you can start by following steps one by one as hereunder:

1. The first step, as rightly said by you, should be to make a partnership deed. The registration of firm is not necessary and only a partnership firm deed can do but if you want to get benefits of legal status you should register your firm. For registration you will have to see which body registers firm in your state, each state has different registering authority.

If possible go for LLP form of partnership, in which you can get benefits of Limited Liability. It costs a bit higher than normal partnership registration but registering it is easy as it is online and may cost you less (taking the factor of amount which you will have to spend in Our Indian government departments).

2. After registration of your firm/creation of deed you should register with VAT Department of your state. Get a TIN number and start your manufacturing and trading activity.

3. Get a PAN for your firm.

4. Open a Bank Account in Firm name.

5. Please see the other legal requirements in your state (Every state has its own legal regulation)

Hope this will help you. Feel free to ask further queries by commenting here or through our contact details.