PROCEDURE FOR ESTABLISHMENT OF PARTNERSHIP

Name :SherazArshad(Reg#56116)
Subject : Financial Management
Project :Procedure for establishment of
Patnership
Instructor : Sir Zia urRehman
Submission Date : 23/06/2014

FINANCIAL MANAGEMENT

Page 1

PROCEDURE FOR ESTABLISHMENT OF PARTNERSHIP

TABLE OF CONTENT:-

ACKWOWLEDGEMENT:- ......................................................... 3
INTRODUCTION: ........................................................................ 4
DIFFERENT KINDS OF PARTNERSHIP: ............................... 4
PARTNERSHIP FIRM REGISTRATION PROCESS IN
PAKISTAN:.................................................................................... 4
ADDITIONAL REQUIREMENTS FOR PARTNERSHIP
BUSINESS ...................................................................................... 5
FORMATION OF PARTNERSHIP BUSINESS IN
PAKISTAN:.................................................................................... 5
PROCESS OF ESTABLISHING A BUSINESS IN
PAKISTAN:.................................................................................... 7
FORM FOR REGISTRATION OF PARTNERSHIP:.............. 9
PROCESS MAP:.......................................................................... 11
REFERENCES: ........................................................................... 12

FINANCIAL MANAGEMENT

Page 2

PROCEDURE FOR ESTABLISHMENT OF PARTNERSHIP

ACKWOWLEDGEMENT:-

Im grateful to Allah for establishing me to complete this report. I

owe a debt of gratitude to Sir Zia Ur Rehman, for the vision and
foresight which inspired us to conceive this project
Shakeel sabri whos guidance was a true blessing for me in
completion of my project report, Im extremely grateful and
indebted to him for his expert, sincere and valuable guidance and
encouragement extended to us.
I also place on record, the sense of gratitude to one and all who,
directly or indirectly, have lent their helping hand in this venture.

FINANCIAL MANAGEMENT

Page 3

PROCEDURE FOR ESTABLISHMENT OF PARTNERSHIP

INTRODUCTION:
Partnership is the relation between persons who have agreed to share the
profits of a business carried on by all or any of them acting for all. Persons
who have entered into partnership with one another are called individually
partners and collectively a firm, and the name under which their
business is carried on is called the firm name.
DIFFERENT KINDS OF PARTNERSHIP:
Partnership Act, 1932 provides different types of partnership i.e. Partnership
at-will and Particular partnership. Partnership at-will is a partnership where
no provision is made by contract between the partners for the duration of
their partnership, or for the determination of their partnership. It is a
partnership for indefinite period but can be dissolve after giving notices to
all the partners. Particular Partnership is a partnership where a person may
become a partner with another person in particular adventures or
undertakings for a specified period. Particular partnership will be dissolved
on the completion of particular business or undertaking.
PARTNERSHIP FIRM REGISTRATION PROCESS IN PAKISTAN:
For partnership firm registration in Pakistan an application is required to be
filed with the registrar of the firms on Form 1 along with certain documents
these are mentioned as under:
1. In order to register business as partnership firm minimum two persons
are required and following information is required for each partner
Full Name, Father or Husband Name, Residential address and
Occupation.
2. Copy of the National Identity cards of both the partners.
3. Partnership deed on stamp paper is also required.
4. Proof of the address of the Partnership Business usually electricity
bill.

FINANCIAL MANAGEMENT

Page 4

PROCEDURE FOR ESTABLISHMENT OF PARTNERSHIP

5. If the address of the Partnership Business is rented then rent deed is
required.
6. Copy of the original receipt of Partnership Fee deposited in the
National Bank of Pakistan.
7. Signatures of all the partners in partnership/firm business in the
presence of registrar or an authorized officer.
ADDITIONAL REQUIREMENTS FOR PARTNERSHIP BUSINESS
1. National tax Number from Federal Board of Revenue
2. Bank Account in the name of Business.
3. Accounting records of partnership business properly maintained profit
and loss account and balance sheet.
4. Advance Payment of Income tax as required under the provisions of
the Income Tax Ordinance, 2001
5. Registration from any other authority if required under any law of the
business to be undertaken.
FORMATION OF PARTNERSHIP BUSINESS IN PAKISTAN:
A Partnership in Pakistan is abusiness entered into by a formal agreement
between two or more persons or corporations carrying on a business in
common. The main city for a Partnership can be furnished by the actual
companions who are answerable for the overall debts of the companies in
addition to that discuss the earnings in addition to deficits of the enterprise
issue using the phrases of the partnership agreement.
Partnership in Pakistan (other in comparison with consumer banking
companies) are usually confined in dimensions to help 20 or so companions.
The interest of a partner is transferable merely while using previous
agreement of the other partner(s). Even so, a new partners to a new discuss
of the Partnership income might be gotten in rely on regarding someone else.

FINANCIAL MANAGEMENT

Page 5

PROCEDURE FOR ESTABLISHMENT OF PARTNERSHIP

Intended for taxation uses in Pakistan, partnerships are generally grouped
straight into:
Registered firms and unregistered firms.
The income of the signed up agency can be at the mercy of very tax
before submission on the companions. Additionally your specific
income of the companions can be at the mercy of income tax on the
typical costs.
Intended for unregistered companies, income tax can be levied around
the firms income and also the companions aren't prone to spend tax
around the stocks associated with earnings gotten on the unregistered
firm(s).
We presents within pointed out providers in the field of Partnership in
Pakistan.
Consultation on a business name for partnership
Research option of partnership business name
Drafting associated with relationship agreement
Sign up associated with relationship
Drafting associated with deed associated with dissolution associated
with relationship
Sign up associated with deed associated with dissolution associated
with relationship

FINANCIAL MANAGEMENT

Page 6

PROCEDURE FOR ESTABLISHMENT OF PARTNERSHIP

PROCESS OF ESTABLISHING A BUSINESS IN PAKISTAN:

Small business Startups with Pakistan need a host of company formalities
which may fluctuate on account of
Legal Individual Required: Personal, Partnership, Firm otherwise they.
Residence position in the appropriate man or women: Non-residents may
necessitate more registrations as well as mortgage approvals to pass through
Business Industry: Support Sector, Production, non-profit etc.
Several departments of Pakistan have been made totally upward conquer
together with most current technology and some registrations including
organization signing up are totally programmed having a number of pests of
course. Several actions might be accomplished on the internet, nevertheless,
objections and/or inquiries of legislation raised from the departments are
often dealt with as a result of proficient lawyer/solicitor and/or Law firm.
Full Legal formalities will change as i have said subpar, nevertheless, as a
normal guideline following will probably be would have to be performed in
order to setup a totally legitimate enterprise with Pakistan:
1. Style a corporation or alliance or single proprietorship under pertinent
guidelines as well as particular person situation.
2. Available Bank-account
3. Get yourself a Countrywide Taxes Quantity
several.
4.Get yourself a Revenue Taxes Quantity (IF required)
5. Sign up for your Pakistani Skilled Taxes with your nearby place a burden
on office
6. Look for Authorization via condition lender of Pakistan with regard to
concern of gives you (non-residents mostly)
7. Register almost any documents drawn up with regard to international
remittances while using the Express Traditional bank
8. Register while using the Member of staff Societal Protection Company
(ESSI)

FINANCIAL MANAGEMENT

Page 7

PROCEDURE FOR ESTABLISHMENT OF PARTNERSHIP

9. Achieve membership rights of nearby holding chamber of business as

well as or even anatomist council.

10. Register Logos, Copyrights and/or patents

11. Sign up for retirement years positive aspects while using the Pakistani
Personnel Old-Age Rewards Company (EOBI).
12. Register while using the Pakistan Stores as well as Organization
Ordinance.
Just in case you require each of our help full the above mentioned for you
like a one click installing, complete abandon a note as well as an M&M
agent will contact a person shortly.

FINANCIAL MANAGEMENT

Page 8

PROCEDURE FOR ESTABLISHMENT OF PARTNERSHIP

FORM FOR REGISTRATION OF PARTNERSHIP:

FORM NO. 1
THE PARTNERSHIP ACT, 1932
Application for registration of firm by the name M/s _____________________
_______________________________________________________________
Presented to the Registrar of Firms Bahawalpur Division, for filing by:
Members of ________________________________
We the undersigned, being the partners of firm M/s

Head Office: ________________________________________________

hereby apply for registration of the said firm and for that purpose supply the following
particulars,
Pursuant to section 58(i) of the Partnership Act, 1932
The Firms Name

(a) Principal
Place:
Place of Business:
(b) Other Place:
Name of Partners in full
With parentage

Date of
Joining
The firm

Permanent residential
address in full

1234-

FINANCIAL MANAGEMENT

Page 9

PROCEDURE FOR ESTABLISHMENT OF PARTNERSHIP

Duration of Firm
How and when terminable

AT WILL

Station:
Dated:

Signature of the partners or of their

Specially authorised agents

I, ____________________son of ___________________ years of age of _______

religion, do hereby declare that the above statement is true and correct to the best of my
knowledge and belief.
Date: _________________
Witness
Address
--------------------

Signature:-------------

I, ____________________son of ___________________ years of age of _______

religion, do hereby declare that the above statement is true and correct to the best of my
knowledge and belief.
Date: _________________
Witness
Address
--------------------

Signature:-------------

I, ____________________son of ___________________ years of age of _______

religion, do hereby declare that the above statement is true and correct to the best of my
knowledge and belief.
Date: _________________

FINANCIAL MANAGEMENT

Page 10

PROCEDURE FOR ESTABLISHMENT OF PARTNERSHIP

PROCESS MAP:

FINANCIAL MANAGEMENT

Page 11

PROCEDURE FOR ESTABLISHMENT OF PARTNERSHIP

REFERENCES:
http://www.secp.gov.pk/
http://masoodandmasood.com/what-is-the-step-by-step-process-of-establishing-abusiness-in-pakistan-law-lawyer-pakistan/

FINANCIAL MANAGEMENT

Page 12