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It is crucial to take care of the legal requirements and documents required for GST registration of partnership firm. Form a partnership or an LLP based on a verbal or written agreement or deed. Firms must provide the partnership / LLP deed as proof of their legal status for GST compliance. Obtaining a GST Registration is an additional requirement. This article discusses the documents required for GST registration of partnership firm.

What are the documents required for GST registration of partnership firm?

The documents required for GST registration partnership firm are:

  • PAN card of all partners (includes a managing partner and authorized signatory) 
  • Firm’s PAN card
  •  Authorized signatory’s Aadhar card
  • A copy of the partnership agreement
  • Passport photos of all partners and authorized signatories (JPEG format, max size – 100 KB)
  • Proof of address of partners (passport, driver’s license, voter card, Aadhar card, etc.)
  • Authorized signatory appointment proof
  • Bank Account Details*
  • Proof of Registered Office Address**

Proof of Registered Office Address**: 

  1.  Self-owned property – utility bill, landline bill, water bill, copy of municipal kata, property tax receipt
  2. Rented/ Leased property – Rent/Lease Agreement and No Objection Certificate (NOC) From Rental Property Owner
  3. Consent Arrangement/ Shared Property–  Owner’s Consent/NOC.

Bank account details:  Copy of canceled check, passbook front page, or bank statement (JPEG format, maximum size – 100 KB)

What documents are required for the GST Register of LLP in India?

The following documents are required for the GST registration of LLP in India:

  • PAN card of all designated partners (includes a managing partner and authorized signatory)
  • LLP’s PAN card
  • LLP Registration Certificate Copies
  • Board Resolution Copies
  • LLP agreement copy
  • Proof of authorized signatory appointment (Digital Signature Certificate of any one of the designated partners)
  • Passport photo of designated partners and authorized signatories  ( JPEG format, maximum size – 100 KB)
  • Address verification of designated partners (Passport, driving license, Voter identity card, Aadhar card, etc.)
  • The designated partner’s Aadhar card
  • Bank account details*
  • Proof of Registered Office Address**

How to check status of partnership firm registration?

  1. Go to GST Portal
Documents Required For GST Registration of Partnership Firm
Click Track Application Status
  1. Select Services >> Registration >> Track Application Status. 
Documents Required For GST Registration of Partnership Firm
Enter ARN and captcha
  1. Enter the ARN number of GST registration application and type the CAPTCHA. 
  1. After clicking Search, the portal will display application status for GST registration.

What are the types of partnerships?

The various types of partnerships are

General Partnership:

In this type of partnership, each partner has the authority to make decisions about the firm’s operations and management. The disadvantage is that the partner’s liability is unlimited and in the event of financial failure/loss resulting from the actions of a single partner, all partner’s personal assets can be taken to settle debts and creditor claims. 

A general partnership is further classified into two types:

1. Partnership at will:

Usually, when forming a partnership, it is up to the partners to agree on the duration of the partnership. The term partnership at will refers to any partnership formed without a set period in which it must dissolve. 

The decision to dissolve a partnership is something that both parties must agree to do when the time is right. It is up to the partners to agree on the duration of the partnership.

 2. Particular partnerships:

Particular partnerships are formed solely for a project of temporary contract-based work or a specific business. The partnership will be dissolved once the business’s goal is met or the act for which the partnership was formed is completed. 

The decision to continue the said partnership is up to the partners, who are free to do so if they so choose. However, if this is not the case, the partnership ends on the completion of task.

Limited Liability Partnership (LLP):

A limited partnership is a type of corporate business organization. Each partner’s liabilities are limited to their agreed-upon contribution to the business. A partner’s personal property is not attachable to pay off the firm’s debts. The Limited Liability Partnership Act of 2008 governs this hybrid organization.

Based on the status of the partnership’s registration:

The Partnership Act does not require a partnership firm’s registration. Both registered and unregistered businesses are legal and valid.

1. Unregistered Partnership Firm:

An unregistered firm comes into form when the partners sign an agreement. The Partners are free to carry on business as usual under the terms of the agreement.

2. Registered Partnership Firm:

The Partnership Firm must register with the Registrar of Firms (RoF) in charge of the Firm’s place of business. According to state law, a registration fee to RoF is a must as part of the registration application. This fee varied from state to state. Registered partnerships are often preferred because of the advantages they offer.

What are the 7 elements of partnership?

The 7 elements of partnership are

  1. Trust: There can be no productive conflict, commitment, or accountability without trust.
  2. Shared Values: Sharing values are the bedrock of any successful partnership. This does not imply that partners are replicas of one another; however, partners must agree on the firm’s ethics.
  3. Interaction: The impression you form of your co-partners.  Are you having fun working with them? Do you still prefer to partner up with them?
  4. Clear expectations: The most successful partnerships set objectives for each partner at the beginning of the year. They seek to capitalize on the strengths of each partner.
  5. Mutual respect:  Mutual respect for one another develops when partners have clear expectations and an understanding of one another’s strengths. Making a relationship work requires respecting your partner in important spheres.
  6. Synergy: Better together than apart: this is the rule for successful partnerships. If you are a deep thinker genius, paired with a detailed idealist. If you are a visionary, you will want a partner who is an incredible implementer.
  7. Two-way communications: All the elements of a good partnership will be ineffective if the firm lacks good communication. To make a partnership successful, managing partners and partners must communicate with one another regularly.

Who is authorized signatory for partnership firm?

An approved signatory is a person who has the lawful capacity to sign official documents for the benefit of another person.  Individuals or groups approve authorized signatories. 

An arrangement of a person as an authorized signatory might be consistent or for particular reasons for a brief term. Going about as an authorized signatory can incorporate going about as the intensity of a lawyer, marking reports instead of another person, and seeing authoritative records.

What is the tax rate for a partnership?

The tax rate for partnership firms is 30% of the total income. A partnership firm is liable to pay a surcharge at 12% where net income exceeds Rs. 1 crore. In addition, an education cess of 4% tax plus a surcharge is applicable.

What happens if a partnership is not registered?

In an unregistered partnership, a partner cannot take any legal action against a co-partner. The following are the consequences of an unregistered partnership firm:

1. It cannot bring its claims against the third party to court.

2. Partners cannot be sued.

3.  Partners in an unregistered firm cannot sue the firm to enforce a right.

4. An unregistered firm’s partners may not sue each other.

5. It cannot claim an adjustment for any amount greater than Rs. 100.

What is the minimum number of partners in a firm?

A partnership firm in India requires a minimum of two and a maximum of people. A partnership for banking purposes must have minimum of ten people.

Is it necessary for a partnership firm to get registered?

No, registering a partnership firm is not compulsory; rather, partners may choose to do so at their discretion. However, it is important to remember that it is always wise to have the partnership firm registered under the Indian Partnership Act, of 1932. An unregistered partnership firm does not have access to certain benefits, special rights, or privileges that registered partnership firms do.

What is the true test of partnership?

Mutual agency is the fundamental component of partnership law. The law of agency is the crux of the partnership relationship, each partner acts as an agent for the other. Each partner acts as the other’s agent. In the absence of an agreement, all partners are liable for an equal share of loss and profit.  If the partner’s role is of both agent and the principal then there is mutual agency among them.

Frequently Asked Questions (FAQ):-

Does partnership apply to GST?

To benefit from input tax credits, any partnership firm that purchases, sells, or offers services must register under the Goods and Services Tax (GST).

What is the GST limit for partnership firms?

The GST limit for a partnership firm is 20 lakhs for services and 40 lakhs for goods.

Is it compulsory for partnership firms to file income tax returns?

The partnership firm must file income tax returns irrespective of its turnover or profit or loss.

Who Cannot partner in a partnership firm?

A minor cannot be a partner in a firm, he may be admitted to the benefits of the partnership by an agreement executed through his guardian with the other partners for the time being with the consent of all the partners.

In which type of partnership registration is compulsory?

Partnership registration is optional, and it is up to the partners whether or not to register the partnership firm.

How much GST is on share of profit from partnership firm?

The maximum interest rate for profit sharing is 12% of the capital contributed by partners to the partnership firm.

Which ITR for partners of partnership firm?

Form ITR-5 must be used to file a partnership tax return.

Wrapping up

Make sure you have all the paperwork and documents required for the GST registration of a partnership firm. We hope we have allayed your concerns. If you have any further GST questions, please contact our team of experts. Visit our website at InstaFiling for more information.

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