A Partnership Firm Registration is a prevalent type of business constitution for organizations that are owned, managed and controlled by an Association of People for benefit. Organization firms are moderately simple to begin are is predominant among small and medium organizations in unorganized sectors. With Limited Liability Partnerships in India, Partnership Firms are quick losing their pervasiveness because of the additional favorable circumstances offered by a Limited Liability Partnership.
It isn’t mandatory to register a Partnership firm; but it is advised because of the additional advantages. Organization firms are made by drafting a Partnership deed among the Partners.
Documents Required for Partnership Firm Registration
- Form No. 1 (Application for registration under Partnership Act)
- Original copy of Partnership Deed, signed by all partners
- Affidavit declaring intention to become partner
- Rental or lease agreement of the property/campus on which the business is set
Key points to consider regarding partnership firm registration:
- Selection of a Business Name: Choose a unique and appropriate name for your partnership firm. Ensure it does not infringe upon any existing trademarks or violate any regulations governing business names.
- Partnership Deed: Draft a partnership deed that outlines the terms and conditions agreed upon by all partners. It should include details such as profit-sharing ratios, capital contributions, roles and responsibilities, decision-making processes, and the duration of the partnership, if applicable.
- Documents Required: Gather the necessary documents, which may include address proof, identity proof, and passport-size photographs of all partners. Additionally, you may need to provide a notarized copy of the partnership deed.
- Application Process: Visit the appropriate government department or registrar of firms in your jurisdiction to file the partnership firm registration application. Fill out the prescribed forms accurately and attach the required documents. Pay the applicable fees, which may vary based on the location and other factors.
- Obtaining the Partnership Firm Registration Certificate: Once the application is processed and approved, you will receive the partnership firm registration certificate. This certificate serves as legal proof of the existence of your partnership firm.
- Other Registrations and Compliance: After obtaining the registration certificate, it is important to fulfill other regulatory obligations. This may include obtaining a PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number), opening a bank account in the partnership firm’s name, and complying with tax and accounting requirements.