Partnership registration means the registration of the partnership firm by its partners with the Registrar of Firms. The partners should register their firm with the Registrar of Firms of the state where the firm is located. It is to be noted that partnership firm registration is not compulsory, the partners can apply for registration of the partnership firm either at the formation of the firm or subsequently at any time during its operation by executing a Partnership Agreement.
A partnership is a relationship between individuals who have agreed to start a business on the grounds of mutual understanding, wherein the liability, role, and responsibilities of each individual may differ. Therefore, a partnership consists of three essential elements.
Our expert team shall create partnership deed as it is an agreement between the partners in which rights, duties, profits shares and other obligations of each partner is mentioned. A partnership deed can be written or oral, although it is always advisable to get a partnership deed to avoid any conflicts in the future.
Advantages of Partnership Firm
Easy to Incorporate: The incorporation of a partnership firm is easy as compared to the other forms of business organizationss. The partnership firm can be incorporated by drafting the partnership deed and entering into the partnership agreement. Apart from the partnership deed, no other documents are required.
Less Compliances: The partners do not need a Digital Signature Certificate (DSC), Director Identification Number (DIN), which is required for the company directors or designated partners of an LLP.
Quick Decision: The decision-making process in a partnership firm is quick as there is no difference between ownership and management. All the decisions are taken by the partners together, and they can be implemented immediately.
Step 1: Application for Registration
Our expert team shall submit application form with the Registrar of Firms of the State in which the firm is situated along with prescribed fees after getting the forms duly attested by all the partners of the firm along with Stamp Duty. The Stamp Duty cost depends on the Number of Partners in the Firm.
Step 2: Selection of Name of the Partnership Firm
Any name can be given to a partnership firm as decided by the partners of the firm. Provided that, name should not be too similar or identical to an existing firm doing the same business.
Step 3: Certificate of Registration
Upon Registrar satisfaction with the registration application and the documents, he will register the firm in the Register of Firms and issue the Registration Certificate. The Register of Firms shall up-to-date information on the firms.
Note- The firm’s registration can be done at the time of its formation or incorporation or during the continuance of the partnership business.