In Chennai, setting up a partnership company provides a special method for entrepreneurs to combine their resources, talents, and objectives into a single business enterprise. Registering a partnership company is a vital act to formalise this joint effort, setting down a sturdy legal structure for the business. Given the active and diversified business environment of Chennai, comprehending and managing the registration procedure is vital for leveraging the real potential of a partnership. This blog is devoted to guiding you through the registration of a partnership firm in Chennai, guaranteeing a smooth transition into official corporate cooperation.
What is a Partnership Firm?
Partnership Company registration in India is an agreement between two or more persons to perform business activities jointly. In this sort of partnership, earnings and liabilities are divided among members, making it a frequent option for small enterprises and entrepreneurs.
A company created by two or more partners with the objective of earning a profit is termed a partnership firm registration. Establishing a partnership company has advantages. The legal document needed to create a partnership firm registration is known as a partnership deed.
Important Rules
The Indian Partnership Act of 1932 governs partnership businesses in India. Formal agreements serve as the foundation for the commercial relationship between partners, who are individuals who join together to create a partnership. This document, which is sometimes referred to as a “partnership deed,” lays out all the crucial information, including how the partners will share earnings, what they will contribute, and how long the partnership will endure.
Documents Required for Partnership Firm Registration
Documents required for partnership firm registration are as follows.
- Partnership Deed
- Address Proof
- Identity Proof of Partners
- Passport-sized Photographs
- Address Proof of Partners
- Registration Certificate
- Bank Account Proof
- Specimen Signature
- Partnership Firm’s PAN Card
- GST Registration
- Power of Attorney
- NOC from the Property Owner
Registration Checklist for Partnership Firms
- Composing the Partnership Agreement.
- Two people, at least, as partners.
- Maximum number of partners: twenty or less.
- Choosing a suitable name.
- Principal Office Location.
- PAN card and company bank account.
How do you apply for partnership registration in Chennai?
According to the Indian Partnership Act of 1932, a partnership firm does not need to be registered in order to exist; instead, it is created when a partnership deed is drafted and signed by all partners and witnesses. Although the Partnership Act of 1932 does not mandate registration, a partnership firm must be registered in order to open a bank account, conduct business with third parties, participate in government tenders, and apply for a bank loan.
For partnership registration in Chennai, the first step in the government partnership registration procedure is to submit an online application for partnership company registration to the registrar of businesses in the relevant jurisdiction. Chennai South, Chennai North, Chennai Central, and Chennai Outer Tambaram Zone are the four registrars of firms in the Chennai zone. You may also file with the assistance of a partnership registration expert in Chennai.
Step-by-Step Guide for Partnership Firm Registration in Chennai
First Step: Creating a Partnership Agreement
A mutually agreed-upon partnership document must be drafted by the partners of the prospective business. It is necessary to print the deed on stamp paper, costing Rs. 300. This will be the fundamental document for the registration procedure.
Second Step: Additional Documents
Following the partnership deed’s drafting, photocopies of the following papers are needed:
- Attested copies of each partner’s ID and proof of address
- Agreement for rental use of the space
- NOC for one’s own property
- A letter of authorisation from partners granting permission for a professional
Note: A letter of authorisation from partners granting permission for a professional to visit the Registrar’s office. The approved individual will be observing the company and its partners.
Third Step: Register online at the website of the Registrar of Firms
- Making an account on the Registrar of Firms website: The Firm must generate the login credentials and register on the website. The user must log in to the website after creating their login credentials. Click the Firm registration link on the Apply request tab to bring up the application form.
- Completing and submitting the Application form (Form-1): It is necessary to fill out the application online. The partnership deed draft contains all the information that has to be filled out on the application form. Further information will be needed, including the witness’s name, profession, birthdate, and PAN number.
- Uploading the necessary files and signing Form 1: As a supporting document, a scanned copy of every document listed is uploaded. Form-1 will be created following the successful registration of the details. The witnesses as well as the partners must physically sign this. The witness might be an IT professional, auditor, advocate, or notary public.
Fourth Step: Fees to the Government are Paid
After Form-1 is submitted, the charge of Rs. 200 must be paid online. The payment acknowledgement must be printed out.
Fifth Step: Manually submitting the documents to the Registrar’s Office
The last stage of the registration procedure is the manual submission of the papers listed in the papers required by the concerned registrar’s office, which comes after online submission and payment of fees through the Registrar of Firms site.
Sixth Step: Department notification of the firm’s successful registration
The Registrar of Firms will email the registered firm after the documents supplied with the online application have been successfully verified, including the firm registration number. The department will typically give the firm’s registration certificate in two to three days. Firm registration typically takes seven to ten days.
Advantages of Partnership Firm Registration in Chennai
- Fundraising: A partnership firm can raise money easily. Since there are more partners, more contributions may be made. Loans are another option available to Chennai’s registered partnerships.
- Easy to Start: Partnership firms in Chennai are simple to start up since, in most cases, a partnership deed is all that is needed.
- Making Decisions: It is a crucial component of any business or organisation. Since adopting resolutions is not an idea in Partnership Firms, decision-making happens much more quickly there. In addition to having a wide range of authority, partners in businesses are often able to approve and participate in each transaction carried out on behalf of the partnership firm.
In summary
The Indian Partnership Act 1932 stipulates that partnership firm registration is optional. Partners are free to choose whether or not to register their company. Nonetheless, a registered business has a number of advantages over an unregistered business.
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