Question

how to set up furniture company under partnership

Answer 1

Furniture Company under Partnership.

As usual partnership firm, you can set-up furniture partnership firm as well.

Ie.

1).There should be an agreement between the parties.

2).The agreement must be to share the profits of the business and the business must be carried on by all or any of them acting for all.

3).The existing of an agency between the concerned persons inter-se.

All the above ingredients must exist before a partnership come into existence.

In detail:

1). First decide to who are the partners of the firm, considering the limit envisaged in the Act.

2). The name of the partnership firm is selected subject to the provisions of the partnership Act.

3). Select the Business, ie. furniture business to be done by the partnership and object of business ie. manufacturing and selling of furnitures.

4).  Decide the capital to be brought by each and every partner

5). Prepare the agreement deed of the firm – the deed is the vital and most significant document. The deed shall contain all aspects of the partnership firm. This documents prescribes the ‘a to z’ of the partnership firm to be formed.

6). Then the partnership firm is to be registered.

7). Acquire all mandatory licences from the respective authorities for the conduct of the business;

8). Registration with required tax authorities i.e., direct tax as well as indirect tax such as central excise, service tax, VAT/ GST etc.

9). The Registration certificate would be the conclusive evidence of the formation of the furniture partnership firm.