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The top financial news headlines of July 16, 2023: 1. The Indian rupee fell to a record low of 80.06 against the US dollar, as investors continued to worry about the country's widening current account deficit and rising inflation. 2. The benchmark Sensex index closed down 0.6%, while the Nifty 50 index closed down 0.7%. 3. The Indian government is considering introducing a carbon tax on coal and other fossil fuels, as part of its efforts to reduce greenhouse gas emissions. 4. Tata Group is close to an agreement to acquire an Apple Inc. supplier's factory in southern Karnataka state, potentially valued at more than $600 million. 5. The International Monetary Fund (IMF) has warned that India's economic growth could slow to 6.9% in the current fiscal year, down from 8.7% in the previous year. 6. Overall, the financial markets in India were volatile on July 16, as investors weighed the risks of a global recession against the potential benefits of domestic economic reforms. The rupee's record low against the dollar is a sign of the growing concerns about the country's external finances, while the decline in the stock market is a reflection of the broader uncertainty in the global economy.

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partnership
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In a partnership, two or more people come together to work and make a profit. There is a partnership deed that sets out each partner’s invested shares and their profit-sharing ratios along with other terms and conditions of business and operations.

Forming a partnership firm in India involves a straightforward process governed by the Indian Partnership Act of 1932. This act outlines the legal framework for establishing and operating a partnership business in the country.

Step-by-Step guide to forming a Partnership Firm in India :

Step 1: Choose a Unique and Appropriate Partnership Firm Name

Select a name for your partnership firm that is distinctive, relevant to your business, and compliant with naming regulations. Ensure that the name is not already registered under another entity.

Step 2: Draft a Comprehensive Partnership Deed

The partnership deed is a crucial document that outlines the terms and conditions governing the partnership firm. It should clearly define the following aspects:

  • Name and Address of the Firm and Partners: Provide the firm’s registered address and the full names and addresses of all partners.
  • Nature of Business: Clearly state the type of business activities the partnership firm will engage in.
  • Date of Commencement: Specify the date from which the partnership firm commences operations.
  • Capital Contribution: Detail the capital contribution of each partner, either in cash, property, or services.
  • Profit and Loss Sharing Ratio: Outline the agreed-upon ratio for sharing profits and losses among the partners.
  • Decision-Making Authority: Establish the process for making business decisions, including the role of each partner and voting rights.
  • Partner’s Duties and Responsibilities: Define the roles, responsibilities, and limitations of each partner.
  • Dispute Resolution Mechanism: Outline the procedure for resolving any disputes that may arise among partners.
  • Dissolution and Winding Up: Specify the conditions under which the partnership firm may be dissolved and the process for winding up its affairs.

Step 3: Obtain Partner Identification and Address ProofsGather copies of valid identity and address proof documents for all partners, such as passports, PAN cards, Aadhaar cards, or voter ID cards.

Step 4: Apply for Partnership Firm Registration

Registration of a Partnership Deed is not obligatory, but useful to get it registered. Submit the following documents to the Registrar of Firms (RoF) in the jurisdiction where your firm’s registered office is located:

  • Partnership Deed: Duly executed partnership deed in duplicate.
  • Affidavit: An affidavit affirming the correctness of the information contained in the partnership deed.
  • Application Form: Completed application form for partnership firm registration (Form 1) along with the prescribed fee.
  • Partner’s Details: Copies of identity and address proof documents for all partners.
  • Firm’s Address Proof: A copy of the firm’s registered office address proof.

Step 5: Obtain Certificate of Registration

Upon successful verification of the submitted documents, the ROF will issue a Certificate of Registration, officially recognizing your partnership firm as a legal entity.

Additional Considerations :
  • Tax Registration: Register for applicable taxes, such as Goods and Services Tax (GST) and Income Tax, as per the nature of your business.
  • Opening a Bank Account: Open a dedicated bank account for the partnership firm to manage its financial transactions.
  • Obtaining Business Licenses and Permits: Obtain any necessary business licenses and permits required for operating your specific business activities.

Forming a partnership firm in India is relatively straightforward, but it’s crucial to ensure compliance with all legal requirements and maintain proper documentation throughout the process.

A sole proprietorship is an entity run by One person. Sole proprietorship are common among entrepreneurs in India. The firm and its Sole Owner are not separate entities. In order to form a sole proprietorship, no formal registration is required.

Although it is easy to form this type of entity, all debts are borne by the owner. In this type of entity, all profits made by the sole proprietor are in the hands of the owner.

For example, Mr. ABC is the Proprietor of M/S XYZ Enterprises. In this case, Mr. ABC and M/S XYZ are the same person from the point of view of various tax laws and no separate tax returns need to be filed and the income earned by the Owner/Proprietor has to be included in the same tax return for individuals.

Forming a sole proprietorship in India is a relatively straightforward process compared to other business structures. It doesn’t require formal registration with the government, but there are certain mandatory registrations and licenses to obtain depending on the nature of the business and its location.

Advantages of partnership :

The number of partners which a Partnership Firm can have is 2 to 50. Partners are responsible for all liabilities and there is no limit to this.  This type of business structure offers the following advantages

Legal Requirement of partnership :

A Partnership Deed is required to be made in this form of entity. Registration of a Partnership Deed is not obligatory, but useful to get it registered.

The following details and documents are required :

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