Registration and formalities
Partners must complete the following formalities to establish and operate a partnership:
- Partners who are individuals must be registered as self-employed with HM Revenue and Customs before setting up a partnership with other self-employed persons or companies.
- Partnership must be register with HM Revenue and Customs. After registration HMRC sends a Partnership Tax Return, which must be filed to show partnership profit after each tax year.
- Partners should appoint one of them to be responsible for filling in the Partnership Tax Return and submitting it to HMRC. He should also ensure that all other partners receive copies of the Partnership Tax Return.
- All partners are jointly liable for any penalties for submitting the Partnership Tax Return late or incorrectly.
In most cases the registration with HM Revenue & Customs is sufficient for a partnership to start operating its business. However, sometimes it has to obtain additional permits, licences or permissions from the local council or other public bodies to offer its services or merchandise, as for example.
- Council’s permission to run for instance a restaurant, street trading or nursery.
- Planning permission to rebuild a property for business purposes.
- Landlord’s permission to operate a business in rented premises.