If a food business is registered under proprietorship and now wants to take up a business partner, what should be done in terms of agreement and taxation?

The Proprietorship firm must be converted into Partnership firm. Hence a partnership firm is to be registered with Registrar of Firms. Following points must be considered to start a partnership firm.

• Registration of partnership firm after entering into an agreement

• Apply for PAN and TAN

• Apply for conversion in every license and tax registration taken for the business

• Intimate the bank about conversion of firm or open a new current account in the name of Partnership firm

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