Partnership Firm Registration

Blue Chip International Offers Partnership Firm Registration in Pakistan in 5 to 10 working Days

Partnership firm registration is the form of business whereby the profit and losses are shared between the partners in pre-determined ratio. Partnership firm registration is often preferred by business over private limited company registration because taxation rates are generally low on partnership firm registration as compared to private limited companies.

However, another aspect of registering your business as Partnership firm rather than private limited company is that the liability of the owner is unlimited in partnership as compared to private limited company where the liability of the business is limited up to the capital of the company.

Another reason for partnership registration is sometimes two or more companies decide to do a common business through sharing of resources in such case they prefer to register a partnership firm which is normally a substitute for mergers and acquisitions by the businesses.

As the general practice of businesses sole proprietors when their business tends to expand need to involve other people as partners and normally businesses are turned from sole proprietor to partnership firms. Sometimes people directly register partnership firm if they want to start business with 2 to 3 or more partners.

Partnerships are registered with Registrar of Firms and each area has different registrar that is provided with the powers to issue certificate of registration of firm by the government.

For further information read Partnership Firm Registration Process in Pakistan

Firm Registration Process in Pakistan

For partnership firm registration in Pakistan an application is required to be filed with the registrar of the firms on Form 1 along with certain documents these are mentioned as under:

• In order to register business as partnership firm minimum two persons are required and the following information is required for each partner – Full Name, Father or Husband Name, Residential address and Occupation.
• Copy of the National Identity cards of both the partners.
• Partnership deed on stamp paper is also required.
• Proof of the address of the Partnership Business usually electricity bill.
• If the address of the Partnership Business is rented then rent deed is required.
• Copy of the original receipt of Partnership Fee deposited in the National Bank of Pakistan.
• Signatures of all the partners in partnership/firm business in the presence of registrar or an authorized officer.

Additional Requirements for Partnership Business

• National tax Number from Federal Board of Revenue
• Bank Account in the name of Business.
• Accounting records of partnership business properly maintained profit and loss account and balance sheet.
• Advance Payment of Income tax as required under the provisions of the Income Tax Ordinance, 2001.
• Registration from any other authority if required under any law of the business to be undertaken.