Partnership Firm Registration
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Start your Partnership Firm easily with our experience of delivering professional Partnership Registration services. Our team can help you get your partnership registration done across India. We will extend our support in documentation, preparation, filing, and subsequent follow-up with the registrar of firms!
Basics of Partnership Registration
To start a Partnership firm, partners need to enter into an agreement which is popularly known as Partnership Deed. Different states impose different stamp duty on the partnership agreements/deeds. So, while creating a partnership instrument (Deed), the partners must purchase stamp paper of appropriate value, as applicable in the respective state, to be annexed with the agreement. You can further get an agreement notarized. Sure, registration of partnership Firm is not mandatory under The Partnership Act, 1932. However, Section 69 of the act specifies the effect of Non-Registration. According to Sectio 69, an unregistered firm shall not be able to recover any sum more than Rs. 100. Hence, we strongly recommend that you register the partnership firm with the Registrar of Firms ( ROF).
Requirements to Register a Partnership Firm
1. Firm Name
Name of the firm should be unique, and it must not same or similar to the name of any existing registered or applied trademark.
2. Minimum Two Persons
Two persons are needed to become partners of the firm. However, a maximum of 20 partners can be present a firm (10 in banking business)
3. No Minimum Capital
You need to base the Minimum capital on the business requirements and there’s no minimum prescription. The capital of the firm determines the Stamp Duty on the deed.
4. No FDI allowed
Law does not permit foreign investment in a partnership firm. In the firm, only an Indian citizen can become the partner and start the partnership firm.
Procedure for Registering a Partnership
1. Name Selection
Choose an appropriate name for the partnership The first step is to choose an appropriate name for the proposed firm. While choosing the name, due care has to be taken to see that it does not violate the trademark of any other person or prohibited emblems and names.
2. Place of Business
Place of business: It is important that the firm should have a proper address since all official communications will be sent only to this address. The jurisdiction of the registrar will be ascertained by this address.
3. Partnership Deed
Execute the partnership deed and stamp with appropriate stamp duty : By the partnership deed, the right, duties and liabilities of the partners is ascertained. All the partners to the firm are governed by the terms and conditions mentioned in the agreement. The stamp duty will vary from state to state and is based on the total amount of contribution by all partners.
4. Application for registration
Along with the documents mentioned above, an application in the prescribed format needs to be submitted to the Registrar of Firms located in the jurisdiction mentioned in the official communication address. On receipt of the application, the Registrar will verify all documents. If satisfied that the provision of the Partnership Act is complied with, the Registrar will enter the particulars in the Register of Firms and issue an acknowledgment in the prescribed format.
Documents Required
1. Photographs of Each Partner
2. PAN Card Copy of Partners
3. Identity Proof (Aadhaar / Voter ID / Driving License / Passport)
4. Address Proof (Bank Statement / Electricity, Mobile, Telephone Bill) Any One
5. Utility Bill as Proof of Registered Address
6. NOC from the Owner of the Premises
Advantages of Partnership Firm
1. Simple to Form and Easy to Operate
A Partnership is very simple to form and easy to manage condisering the regultory requiremets of Limited Company or Limited Liability Partnership.
2. Registration is not Mandatory
Registration of Partnership under the Partnership Act is not Mandatory. It is optional to the partners of the Firm. However, an unregistered partnership may face difficulties in getting the agreement terms enforced under law.
3. Simple Compliance Needs
Regulatory compliance requirements of partnership are much simpler compared to Limited Companies and LLP. However, the compliances related to Taxation and other operational matters are equally applicable to Partnership.