Firm Registration in India-We Make It Simpler!
Posted: Feb 20, 2020
The partnership firm or a company, is defined as the company formed by coming together of two or more partners, to earn profits and run business operations. The registration of a partnership firm is not a compulsory task, but there are numerous benefits attached to a registered partnership firm. When a partnership firm is created, then a legal partnership deed is formed stating the rights and responsibilities shared between the partners.
The commencement of a partnership firm registration in India is done under the Indian Partnership Act, 1932. It has laid down the responsibilities and regulations of this kind of firm. The company entering this deed can acquire a minimum of two partners and a maximum of 20 business partners willing to enter not a partnership.
Highlights of a partnership firm
- The partners are separate legal identity, but the firm does not have an individual identity.
- The firm cannot be debtor or creditor.
- The firm cannot own a property.
- The details of sharing of profits or losses among the partners have to be explicitly mentioned in the partnership deed, for further reference and avoiding any form of discrepancy.
- The partners can carry on the business on behalf of others.
- The partnership firm will cease to exist if the number of partners reaches below 2 in any mishap, incapacitation or resignation of partners.
Importance of registering a partnership firm
The partnership firm registration is governed by the Indian Partnership Act, 1932. It states that the registration of the firm is optional and completely upon the will of the engaged partners. The registration of a firm can be executed at any time- before the start of the business or anytime during the working stage of the partnership.
Although it is advisable to register the firm under the Ministry of Corporate Affairs. These firms enjoy special rights and benefits, exclusive to the registered firms.
Method of firm registration
The firm partners who wish to register the partnership firm have to fill up an application form. The application form is submitted to Registrar of Firms of the State in which the firm is located. It is essential to get all the partners on board on the application form.
Documents for Registrar
The documents required for partnership firm registration in India are listed below. Kindly go through it carefully to ensure rejection of the form. The documents are:
- File Form 1 for application for registration of partnership
- Get a copy of the Affidavit
- Attach a Certified original copy of Partnership Deed
- Get proof of principal place of business like the ownership documents or rental/lease agreement, etc.
Sometimes new companies find it difficult to assemble all the documents and become highly stressed. Their work can be made easy with the availability of legal firms across the country. These firms comprise intelligible lawyers, with years of experience in handling firm registration process and other legal procedures arduously. They are very reliable and professional in approach, offering numerous reasonable packages according to the need of the clients. Any of these firms may readily be registered along with than our expeditious and excellent call off anywhere in India, depending nearly ones have an effect on objectives and the size of the issue proceedings.
Kavita is working as a consultant at a legal services in India. She is also an experienced and passionate writer who has been written many Blog and websites' content about Company registration and Trademark registration in India.