A partnership is a form of business entity where two or more persons come together to form and manage a business. It is not compulsory to register a Partnership firm. However, it is advisable to register a Partnership firm due to its attached legal advantages.
Reasons to Register a Partnership –
Power to Take Legal Action in the court of Law against the Firm or Other Partners.
Registered Firm can file a case in Court of Law against 3rd parties.
Power to set-off against claims made by outsiders.
Steps to Register a Partnership-
Filing application for registration in Form No.1 along with prescribed fees to the Registrar of Firms of the State in which the firm is situated.
Name of the partnership firm: The proposed name shouldn’t contain words like emperor, crown, empress, empire or any other words which show sanction or approval of the government.
Address proof of the place of business: If Property (Rented):-Rent Agreement and NOC from Landlord.
If Property (Owned):- Latest Electricity Bills/Telephone Bill/ Property Tax or any other Address Proof. (Not Older than 2 Months)
Affidavit from each Partner (to be drafted by us)
Duly certified true copy of the Partnership deed.
Names of any other places where the firm carries on business.
PAN card copy of all the partners.
Address proof of all the partners.
Rent Agreement of the partnership firm. (If Rented)
It is mandatory for all firms to apply for registration with the Income Tax Department and have a PAN Card. After obtaining a PAN Card, the partnership firm is required to open a Current Account in the name of the partnership firm and to operate all its operations through this bank account.
Drafting a partnership deed –
Partnership deed is an agreement between the partners in which profits, duties, rights, shares and other obligations of each partner is mentioned.
Name and address of the firm and all the partners.
Nature of business.
Date of commencement of business.
Capital contribution of each partner.
Profit/loss sharing ratio among the partners.
Duration of Partnership Firm.
Interest on Fixed capital, drawings limit of partners or any loans provided by partners to firm
Salaries, commissions or any other amount to be payable to partners.
Rights of each partner, including additional rights to be enjoyed by the active partners.
Duties and obligations of all partners.
Adjustments or processes to be followed on account of retirement or death of a partner or dissolution of firm.
Other clauses as partners may decide by mutual discussion and so on.
If the Registrar is satisfied with the documents, he will register the firm in Register of Firms and issue a Certificate of Registration.
Fill this form to register your partnership.
To know more about the partnership registration process, write to us at firstname.lastname@example.org or fill our “Contact Us” form. A professional from our team will get back to you at the earliest.