Partnership Registration Pakistan
A Partnership is defined as, the relation between two or more persons who have agreed to share the earnings of a business. Its type of business contains its own pros and cons; it’s primarily suitable for small size startups. Two or more person agreed to share the excess of a business carried on by all or any of them handling for all can name a partnership firm.
It is a general mode of operations for various small and medium sized business entities. There is no mandatory requirement for its registration in Pakistan. Nevertheless, registering does take towards tax and litigation related consequences that are beneficial to the business.
Partnership Registration Requirements
1. Consultation on a business name.
2. Search availability of business name.
3. Drafting of agreement.
4. Registration of partnership.
5. Drafting of deed of dissolution.
6. Registration of deed of dissolution.
- National Tax Number from Federal Board of Revenue.
- Bank Account in the name of Business.
- Accounting records of the partnership firm, an organized maintained loss and profit account and balance sheet.
- Payment in Advance of Income Tax as chosen by the Income Tax Ordinance of 2001.
- Registration from any other authority if chose under any business law to be followed.
When all documents are standby, a Partnership can be registered with the Firm’s Registrar of an area where the office of the firm is located or proposed to be located. A statement in the prescribed form has to be delivered to the relevancy registrar stating:
- The name of firm
- The principal place or place of business of the firm.
- Any other places names where the company carries its business.
- The date of joining the firm for each partner.
- All partner’s full names and their permanent addresses (information should be identical with the NIC).
- Firm duration.
The Partners must sign the Deed of Partnership. Furthermore, the person’s signing must verify the statement. Post verification of every document from the registrar, the firm entry is made in the Register of Firms and a respective statement is filed for the creation of the new partnership.