Steps to get partnership firm registration
Posted: Nov 16, 2018
What do you understand by partnership firm?
- In partnership firm registration, there is a group or association of people that come together to start a business and earn a profit. Partnership firms are more likely to be seen in unorganized sectors, involved in small or medium-sized businesses.
- Limited liability partnership is taking the lead in this sector by offering the supplementary benefits to the owners.
- There is no obligation for the partnership firm registration; however, it is always suggested to get your partnership firm registered to avail the extra advantages.
- For the partnership firm registration, members are required to prepare a partnership deed amongst themselves.
What is the procedure of Partnership firm registration?
- Name of the Partnership firm
- As we know that the partnership firm registration is not mandatory, so you can come up with any name; making sure that it doesn’t violate any of the registered trademarks.
- Other partnership firms can have the same business name, till the time; the trademark is not registered.
- Availability of name
Before naming your business, you need to do a quick research for the availability of name for the partnership firm registration.
- Name registration
Once the name is approved (In case of LLP, it has to be applied at the MCA portal for name availability check and approval), you can go for the registration of partnership firm name.
- Partnership agreement
The members of the company decide the rules and regulations to be followed, profit shares, to draft a partnership deed that can be registered with the registrar.
- Bank Account
At last, you just need to open a bank account on the name of partnership firm. You are just required to submit the partnership deed copy and KYC documents of the members, and other documents if needed.
Documents required for the Partnership firm registration
- Identity proof of partners
You have to submit the copy of PAN for Indian nationals and Notarised passport copy for foreign nationals for the registration of partnership firm.
- Address proof of the partners
For the address proof of the partners involved in the partnership firm, have to submit any of the two documents
- Driver license
- Aadhar card
- Bank statement
- Electricity bill
- Address proof of office
You need to provide the address proof of the workplace. You can present the following documents as proof of office address;
- Rental agreement
- Copy of electricity bill
- Property tax receipt
- No objection letter from the landlord for the use of premises as a registered office
- Partnership Deed
The last document in the line will be the partnership deed that needs to be signed by all the partners. The partnership deed has to be signed on the non-judicial stamp paper whose cost varies according to the investment made in the partnership firm.
Types of Partnership firms in India
Before you jump into the business and start your partnership firm, do have a look at the kinds of partnership firms that exist and which partnership firm suits your business.
- General partnership
In general partnership, there are members that are involved in all the activities of the business and are liable to the business. In a General partnership, the partners share equal rights and responsibilities in connection with the management of the business. In the case where any individual partner does wrong, it can bind the entire group to a legal obligation.
A limited partnership has one general member that manages all the business-related activities, while it has one or more limited partners who don’t involve in the daily operations of the business and don’t have any liability either. At least one participant must accept general partnership status, exposing himself or herself to full personal liability for the business's debts and obligations.
Limited liability partnership
In Limited liability partnership firms, partners have limited liability in accordance with the investment/contribution made by them individually in the business.
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