Partnership in Pakistan is a business entered into by a formal agreement between two or more persons or corporations under partnership act carrying on a business in common. The capital for a Partnership is provided by the partners who are liable for the total debts of the firms and who share the profits and losses of the business concern according to the terms of the partnership agreement.
Partnership in Pakistan (other than banking companies) is generally limited in size to twenty partners. The interest of a partner is transferable only with the prior consent of the other partner(s). However, a partner’s right to a share of the partnership income may be received in trust for another person.
For taxation purposes in Pakistan, partnerships are classified into:
Registered firms and unregistered firms.
The income of the registered firm is subject to super tax before distribution to the partners. Also the individual income of the partners is subject to income tax at the usual rates.
For unregistered firms, income tax is levied on the firm’s income and the partners are not liable to pay tax on the shares of profit received from the unregistered firm(s).
CBRM offers under mentioned services in the field of Partnership in Pakistan.
1. Consultation on a business name for partnership
2. Search availability of partnership business name
3. Drafting of partnership agreement
4. Registration of partnership
5. Drafting of deed of dissolution of partnership
6. Registration of deed of dissolution of partnership
CBRM offers Partnership registration service in Pakistan between two or more persons
Prompt and effective taxation planning can enable taxpayers to limit their tax liability.