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Difference between Firm registration and Proprietorship Firm Registration.

In market people have big dilemma about firm registration and proprietorship firm registration. They often got confused what exact difference both registration type is contained. Here we are going to discuss about what is Firm Registration and sole proprietorship registration.   

Firm Registration- Partnership Firm Registration denotes registration of a business by the partners by entering into an agreement called Partnership Deed or Agreement under the law of Indian Partnership Act, 1932. Here two or more person comes together and form a business by agreeing to the terms and conditions mentioned in Partnership Deed registration. In Firm Registration usually the motive is to make contribution to the business and share the profit and loss arises during the course of business.

Indian partnership Act, 1932 has governed the law related to Partnership Registration. Government has established various Registrar of Firms and Societies in each states. There are various registrars in each state according to the requirements of jurisdiction for the purpose of Partnership firm registration. As compare to Company Registration, in Partnership Firm registration no regular compliance requirements are there. There is no burden to make certain compliances on regular basis after having Online Firm Registration.
Partnership deed can be registered or unregistered. Unregistered partnerships have their drawbacks.

Sole Proprietorship Registration- Sole proprietorship registration is nothing just a basic business registration with governments. If you have GST Registration on individual name it will also consider as sole firm registration. There is no particular registration is not specified for sole proprietorship and so specific has been introduced for sole registration. For example whether you register GST, Ghumasta or Shop and Establishment registration, MSME Registration, Trade Registration with local municipal body, all these registration will consider as sole firm registration. Because here only individual is in charge for all profit and losses or rights and liabilities arises during the course of business.
Sole Proprietorship firm registration is beneficial for those business persons who don’t want involvement of any other persons in their business.

So many people called it as company but here you should know that a company which is registered under Companies Act, 2013 with Ministry of Corporate affairs is exactly called as company. Apart from MCA Registration all other business registration is called as Firm Registration, Partnership Firm Registration, Sole Proprietorship Registration, Trade Registration, Ghumasta Registration, etc.
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In case if you are still confused about firm registration or online firm registration or company registration, do connect our professionals at 9625279785 or 9267941961 or you may write us at info@legalpillers.com. Our professionals are available to help you for all find a ca or Online CA related services through our platform Income Tax Consultant.  

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