Partnership Firm – Highly Demanded Corporate in Indian Business Market, especially for a medium-scale business enterprise. Partnership is a business that has two or more members joined together to run the same business under an agreement. The partners share the profits, losses, and are equally responsible for any of the liability. The Registration of Partnership Firm is done and controlled under section 58 of the Indian Partnership Act, 1932. After registering, you can start your business with your partners.
First, creating a partnership deed is very important and it has to be done to register that deed with the Registrar. To create a partnership deed follow the steps below:
Perfect name for your partnership
Select a simple and short name that represents your business and most importantly select a unique name. Avoid the name which very similar or very familiar name which already created a mark in the market.
It is better to register the trademark soon after choosing your partnership name for further legal protection like misleading the customers or public with similar fake names.
Basic partnership deed
The partnership deed is the list of basic duties and rights of each partner in the company. Here are some such duties and rules which must be included in the partnership deed:
- Name and address of the firm
- Names and address of the partners
- Nature and type of business
- Contract period of your partnership
- Initial investment of each partner
- Ratio in which profit / loss is agreed to be shared among partners
Following specific details can also be mentioned
- Salaries or commissions payable to partners
- Procedures followed after the retirement or death of a partner
- Procedures to introduce a new partner
- Responsibility and powers of each partner
- Procedure in auditing
The above additional clauses will be useful in a hypothetical situation or if any dispute arises among the partners.
Pin down the Partnership deed in proper format
After including all the rules and guidelines, your partnership deed must undergo legal way like printing the contract in stamp paper and getting the signatures from all the partners. Every partner should have a copy of this partnership deed and an original copy must be in business records.
Get a PAN Card for Partnership Firm First
PAN card for Partnership firm is a must to register your partnership firm with the Registrar of Firms. You can apply for PAN card online at https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
After completing the Proper Partnership agreement, you can go with the procedure of Registration of Partnership Firm
Fill Your Registration Application
The procedure of registration of the Partnership firm starts with filling the Registration Application. This form includes the name of the partnership, Address, the names and the addresses of all the partners, the date in which the business is started and the duration of the partnership. Every partner should present and sign the Application form in front of a notary, the official who will notarize the signature.
You can find the Application for Registration of Partnership firm here
And also have a glance on blank copy of application form here
Submission of the application form
Submit the Application form at Registrar of Firms which is near you along with supporting documents, that includes
- A certified Partnership Deed – Original copy
- Your Partnership firm’s PAN card
- Address proof (ownership deed or lease) of the Partnership Firm
- Address proof and PAN cards of all partners
- An affidavit certificate to prove that all the details filled in the application are correct
Fees and stamp duties of Partnership Firm Registration
While submitting the documents, the Registrar will inform you about the fees and stamp duties that you have to pay. The fees and the stamp duties vary depending on the location of your business. Your partnership will be registered only after all fees and duties are paid completely.
Certificate from the Registrar
The next and final process is your application and documents will be reviewed by the Registrar. If everything is correct, the Registrar will formally register your partnership firm.
It will take a few weeks to get the official registration certificate and it will be mailed to your business address. But you don’t have to wait to receive the registration certificate to start the business. Go Ahead! All the Best!!