How to Register a Partnership firm?

How to Register a Partnership firm?

A Partnership is one of the most essential forms of a business organization. A partnership firm is where two or more persons come together to form a business and divide the profits in an agreed ratio. The partnership business includes any kind of trade, occupation, and profession. A partnership firm is easy to form with fewer compliances than companies.

How to Register a Partnership firm?

The Indian Partnership Act, of 1932 governs and regulates partnership firms in India. The persons who come together to form the partnership firm are knowns as partners. The partnership firm is constituted under a contract between the partners. The contract between the partners is known as a partnership deed which regulates the relationship among the partners and also between the partners and the partnership firm.

Procedure for Registering a Partnership Firm

Step 1: Application for Registration

An application form has to be filed to the Registrar of Firms of the State in which the firm is situated along with prescribed fees. The registration application must be signed and verified by all the partners or agents. 

The application can be sent to the Registrar of Firms through post or by physical delivery, which contains the following details:

  1. The name of the firm.
  1. The principal place of business of the firm.
  1. The location of any other places where the firm carries on business. 
  1. The date of joining of each partner.
  1. The names and permanent addresses of all the partners.
  1. The duration of the firm. 

Step 2: Selection of Name of the Partnership Firm

Any name can be given to a partnership firm. But certain conditions need to be followed while selecting the name:

  1. The name should not be too similar or identical to an existing firm doing the same business.
  1. The name should not contain words like the emperor, crown, empress, empire, or any other words which show sanction or approval of the government.

Step 3: Certificate of Registration

If the Registrar is satisfied with the registration application and the documents, he will register the firm in the Register of Firms and issue the Registration Certificate. The Register of Firms contains up-to-date information on all firms, and anybody can view it upon payment of certain fees.

An application form along with fees is to be submitted to the Registrar of Firms of the State in which the firm is situated. The application has to be signed by all partners or their agents.

Partnership Firm Registration Fees

The government fees applicable for a partnership firm registration varies from state to state depending on the partner’s contribution.

Timelines for Partnership Firm Registration

The partnership firm registration process takes approximately 10 days, subject to departmental approval and reverts from the respective department.

Checklist for Partnership Firm Registration

  1. Drafting of Partnership Deed.
  1. Minimum two members as partners.
  1. Maximum of equal to or less than twenty partners.
  1. Selection of appropriate name.
  1. Principal Place of business.
  1. PAN card and bank account of the firm.

 

 

 

Created & Posted by Pooja

Income Tax Expert at TAXAJ

 

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