Procedure of Registering Partnership firm
The procedure for registering a partnership firm in India is as follows:
1. Choose a unique name for the partnership firm.
2. Create a partnership deed: A partnership deed is a legal document that outlines the terms and conditions of the partnership, such as the name and address of the firm, the names and addresses of the partners, the profit-sharing ratio, capital contribution, etc. The partnership deed can be prepared with the help of a lawyer or downloaded from government websites.
3. Obtain a PAN card: The partnership firm should apply for a PAN (Permanent Account Number) card from the Income Tax Department.
4. Obtain a TAN: The partnership firm should also obtain a TAN (Tax Deduction and Collection Account Number) if it is liable to deduct or collect tax at source.
5. Register the partnership firm: The partnership firm can be registered with the Registrar of Firms in the state where the business is located. The application for registration should be submitted along with the partnership deed, address proof, identity proof of the partners, and the prescribed registration fee.
6. Obtain the Certificate of Registration: Once the Registrar of Firms is satisfied with the application, a Certificate of Registration is issued to the partnership firm.
7. Open a bank account: The partnership firm should open a bank account in the name of the partnership firm using the Certificate of Registration and PAN card.
After completing these steps, the partnership firm will be legally recognized and can start conducting business.
It is important to note that registration of a partnership firm is not mandatory, but it is advisable as it provides legal recognition to the partnership and protects the interests of the partners.
Objective of starting partnership firm
The objective of starting a partnership firm can vary depending on the partners' goals and aspirations. Some of the common objectives of starting a partnership firm are:
To pool resources: Partnerships are an excellent way to pool resources and start a business venture. Each partner brings in their skills, expertise, and capital, which helps to create a well-rounded and successful business.
To share profits and losses: Partnerships allow for sharing of profits and losses among partners. This helps to distribute the risks and rewards of the business, providing a safety net for all partners.
To combine complementary skills: Partnerships enable partners to combine their complementary skills and expertise. For example, one partner may be good at finance and accounting, while the other may be good at marketing and sales. By combining their skills, they can create a strong and successful business.
To create a strong brand: artnerships can help to create a strong brand by combining the partners' reputations and experience. This can help to attract customers and build a loyal following.
To achieve growth: Partnerships can help to achieve growth by expanding the business through additional capital and resources. This can help the business to scale up and achieve its full potential.
Eligibility for applying to Partnership firm registration
The following are the eligibility criteria for applying for partnership firm registration in India:
Number of partners: A partnership firm must have a minimum of two partners and a maximum of 20 partners.
Age of partners: All partners must be adults, i.e., they should be 18 years or older.
Partnership deed: A partnership firm should have a partnership deed that outlines the terms and conditions of the partnership.
Name of the partnership firm: The name of the partnership firm should not be identical or similar to that of any other business in the same industry.
Address proof: The partnership firm should have a registered office address that can be used for all official correspondence.
PAN card: The partnership firm should have a PAN (Permanent Account Number) card, which is mandatory for all businesses.
Identity proof: The partners should provide identity proof such as Aadhaar card, Voter ID, Passport, or Driver's License.
Consent of partners: All partners should provide their consent for the formation of the partnership firm and the terms and conditions of the partnership deed.
No illegal activities: The partnership firm should not be involved in any illegal activities or businesses that are prohibited by law.
If the partnership firm meets all the above eligibility criteria, it can apply for registration with the Registrar of Firms in the state where the firm is located.
PSR Compliance Assistance
The process of registering a Partnership firm registration involves adhering to many requirements, preparing documents, and complying with pre-incorporation and post-incorporation compliances. Moreover, complying with specific MCA mandates is imperative to avoid incurring hefty penalties and late fees. This process can seem daunting and confusing without professional assistance. PSR Team provides expert service in the online registration process of one’s company on the MCA website. Our team of experts will assist you every step of the way in your journey to get your firm registered.
