How to Register a Partnership firm
/ Company formation / registration

How to Register a Partnership firm?

A Partnership firm gets registered under section 58 of the Indian Partnership Act 1932 and it’s done through the Registrar of Firms.

A business entity that’s controlled by an association of individuals is defined as a partnership firm. The partners of a partnership firm share the liability of profit and loss.

Steps to register a Partnership firm

1. Selecting an appropriate name for the firm
Choosing an appropriate name is one such step that must be initiated while registering a partnership firm.

  • The name must not be too identical or almost like the name of any existing company wherein it can cause confusion.
  • However, the name shouldn’t be from any of the prevailing popular brands or the other trademarks. It should be limited to the name of the owner or accomplices.
  • The name must not contain words within the name that signifies its consent in writing to the utilization of such words of the firm name that indicates sanction or approval by the govt .

2. Drafting of the partnership deed
A partnership deed contains details about the partners of the firm and a couple of details of the firm. Few points that require to be kept in mind while drafting a partnership deed include:

  • Nature of business
  • Date of commencement of business
  • Principal place of business .
  • Contribution of capital from Partners
  • Name and details of partners
  • Rights and duties of every partner
  • The ratio of profits shared

3. Finalisation of the partnership deed.
Once the deed has been finalised, to think about it to be legal it must be printed out on a stamp paper with proper notary and also affixing the signature of every partner.

  • The value of stamp tax payable will differ from state to state.

4. Application for registration
The application for registration must be completed including all the required details of the firm, partners, contribution towards the firm, location and duration of the firm and therefore the date of commencement of the business. This must be signed and notarised by each partner.

5. Submission of the appliance
The application must be submitted to the registrar of Firms along side the documents required for the registration process as listed below:

  • Application for registration of Partnership (Form 1)
  • Specimen of Affidavit
  • Original copy of Partnership deed
  • Ownership proof of the principal place of business.

6. Stamp duty fee
On completion of the ultimate submission, stamp tax fees concerning the actual state must be purchased the partnership registration.

7. Registration Certificate
The verification of the appliance are going to be done by the Registrar and therefore the registration Certificate are going to be issued.

8. PAN application
It is always advisable to urge a PAN within the name of the partnership firm albeit the firm isn’t registered. PAN would be required to open a accounting within the name of the Partnership Firm and is beneficial from the attitude of taxation.