Partnership Firm Registration / AOP Registration

Generally, a partnership is formed when two or more individuals agree to share the earnings of a business. The type of business it is has both advantages and disadvantages; it is primarily suitable for small-sized startups. A partnership company is established when two or more individuals agree to share the surplus of a business carried on by all or any of the handlings for all.

Small and medium-sized entities can use it as a general model for their operations. Pakistan does not require its registration. Yet, registering has tax and litigation-related benefits for the business.

Partnership Firm Registration Requirements:

Consultation on a business name.
Search availability of business names.
Drafting of agreement.
Registration of Partnership Firm.
Drafting of the deed of dissolution.
Registration of deed of dissolution.

Additional Requirements:

National Tax Number from FBR.
Bank Account in the name of Business.
Accounting records of the partnership firm, an organized maintained loss and profit account, and balance sheet.
The Income Tax Ordinance of 2001 allows advance payments of income tax.
Registration from any other authority if chosen under any business law to be followed.

When all documents are ready, a Partnership can be registered with the Registrar of the Firm where the firm’s office is located or where it plans to locate. The relevant registrar must receive a statement in the prescribed form stating:

The name of the firm
The main office or place of business of the firm.
Names of any other locations in which the company operates.
Each partner’s date of joining the firm.
All the partners’ full names and their permanent addresses (information should be identical with the NIC).
Firm duration.

The Partners must sign the Deed of Partnership. They must also sign the statement. The new partnership is formed after all documents are verified by the registrar, and the formal statement for forming the partnership is filed with the state.

What is a Partnership Deed?

Two or more people can sign a partnership deed to establish their relationship. Business partners share ownership, management responsibilities, and profits. The partnership deed documents this.

A partnership deed specifies the terms and conditions of the partnership between the partners. Each partner’s role is clearly defined in a partnership agreement, which ensures smooth business operations. Partnerships are different from other forms of business in that partners work together to achieve shared objectives. Partners in partnerships are able to determine the terms of their relationship based on their own preferences. Partnership deeds specify these terms. The partnership agreement outlines the firm’s structure, the rights and duties of the partners, their liabilities, and the ratio by which profits and losses will be divided.

Registration of Partnership Deed

Each partnership deed outlines each member’s responsibilities and rights. A deed can be written or oral; however, when it comes to taxes, an oral contract is useless. The following are the components of a partnership deed:

The name of the firm.
Name and addresses of the partners.
Nature of the business.
The term or duration of the partnership.
Capital is contributed by each partner.
Each partner can make the drawings.
Interest must be allowed on capital and charged on drawings.
Rights of partners.
Duties of partners.
Remuneration to partners.
The method used for calculating goodwill.

Importance of partnership deed

Well-drafted deeds have the following advantages

The company controls and monitors all partners’ rights, obligations, and liabilities
Helps prevent disputes between partners.
All partners have clearly defined responsibilities.
A partnership agreement also specifies how much each partner and working partner will be paid. Partners receive interest in their investments.

How Taxocrate Can Help You in Partnership Registration?

We have found from our research and experience that people are generally reluctant to communicate or correspond with government officials or deal with government institutions. This is where Taxocrate comes in. With more than 35 years of experience in registering businesses and partnerships, we know the intricacies involved.
Thus, we register your business as a partnership with the Registrar. In addition, we help you formulate the terms of your partnership agreement and advise you on all legal issues involved with it.

Have Any Question?

Our expert attorneys are one call away from you to provide you with consultation regarding all corporate and business matters.

Talk To a Lawyer

Partnership Firm Registration / AOP Registration