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How to Register Your Partnership Firm in India
Step 1- Choosing the Partnership Name
Step 1
The partners are free to choose any name as they desire for their partnership firm subject to the following rules:-
1. The names must not be too identical or similar to the name of another existing firm doing similar business so as to lead to confusion. The reason for this rule being that the reputation or goodwill of a firm may be injured, if a new firm could adopt an allied name.
2. The name must not contain words like Crown, Emperor, Empress, Empire or words expressing or implying the sanction, approval or patronage of Govt except when the State Govt signifies its consent in writing to the use of such words as part of the firm name
Step 2 – How to Create Partnership Deed ?
Step 2
The document in which the respective rights and obligations of the members of a partnership is written is called the Partnership Deed.
A partnership deed agreement may be written or oral. However, practically oral agreement does not have any value for tax purposes and therefore the partnership agreement should be written. The following are the essential characteristics of a partnership deed:-
* Name and Address of the firm as well as all the partners
* Nature of business to be carried on
* Date of Commencement of business
* Duration of Partnership (whether for a fixed period/project)
* Capital contribution by each partner
* Profit sharing ratio among the partners
The above are the minimum essentials which are required in all partnership deeds. The partners may also mention any additional clauses
Step 3- How to Register Partnership deed in India
Step 3
Partnerships in India are governed by the Indian Partnership Act, 1932. As per the Partnership Act, Registration of Partnership Firms is optional and is entirely at the discretion of the partners. The Partners may or may not register their Partnership Agreement.
However, in case the partnership deed is not registered, they may not be able to enjoy the benefits which a registered partnership firm enjoys.
Registration of Partnership Firm may be done before starting the business or anytime during the continuance of partnership. However, where the firm intends to file a case in the court to enforce rights arising from the contract, the registration should be done before filing the case.
The procedure for Registration of Partnership Firms in India is fairly simple. An application and the prescribed fees are required to be submitted to the Registrar of Firms of the State in which the firm is situated. The following documents are also required to be submitted along with the application:-
- Partnership Deed
- Documents of Partners - PAN card and address proof of partners
- Documents of Firm-PAN card of firm, Address Proof of firm
- Additional Documents in case of Registration
- GST Registration
- Current Bank Account
The procedure for Registration of Partnership Firms in India is fairly simp...