Registering a partnership firm in India
Proprietorship and partnership are considered a very popular form of business organizations currently in India. The reason behind it can be that it is extremely easy to set up in comparison. Moreover, the statutory compliance requirements to be followed by the organizations of partnerships and proprietorship are less in comparison with the statutory compliance requirements that are applicable for the LLPs and companies.
A partnership firm is usually managed, owned and controlled for the purpose of profit by an association of people. It is to be noted that it is not compulsory to register a partnership firm in India. However, it is recommended that the registration should be done to avail the benefits and added advantages. There are two types of partnership firms which are registered and unregistered firms. The partnership firms are established by drafting the partnership deed amongst the partners.
How to register for the partnership firm?
Indian partnership Act which was established in the year of 1932 governs the partnerships in India. The partnership registration can be done solely at the discretion of the partners as well because it is optional and not mandatory. Partnership firm registration can be done before the start of the business as well as while the business is in continuation. In the circumstances where the firm has to file a case, then the registration has to be done before filing the case.
The whole process/procedure for the new partnership firm registration is quite a simple task. The prescribed fees and an application are required to be submitted to the Registrar of firms in the state where the firm is based at. Certain documents have to be submitted which are
- A duly Filed specimen of the Affidavit
- The certified true copy of partnership deed
- The proof of the ownership is to be submitted as well. That can be of the main place of the building or the lease/rental agreement.
- In Form no. 1, Application for registration of partnership.
It is vital that the application has to be signed by all the partners or by the agents authorized in this behalf. If the registrar is completely satisfied with all the stated points, then an entry of the statement is recorded in the register known as Register of firms, and then the certificate of registration is issued. In this digital age, there is a facility of online partnership firm registration in india.
Benefits of registering a partnership
The partnership firm is easy to set up and starts, and there are no hectic legal procedures to go through. You can choose any name for your company as long as it does not cause any infringement issues. The partnership deed will be essential in determining the ownership of the firm. Unlike a company or LLP’s, there is no requirement for the annual filing of accounts every year. A bank account can also be opened in the name of the registered partnership firm.
There are various service providers who help in the set up of the partnership firm. Their services can be availed as they make the task easier and various packages are also provided by them.