When you start a business, you always need a co-founder of your startup. Co-founder of the startup can be your friend or any other person as the investor. So the problem arises when you wanna register your business legally in India that time startups confuse about how they register business legally in India so both partners are on the safe side as legally.
Today we guide you on Learning about the ” Registration of Partnership Firm in India Online“. Partnership Firm is the very traditional business formation in India. Most of the family business are running in India on partnership firms.
So Partnership Firm is chosen by the startups when they have the low budget and also working on another company. They wanna just test their ideas before starting a growing company. Partnership firm is the best option before the LLP (Limited Liability Partnership Firm) was introduced in April 2009. But now Partnership firm rarely chooses by the startups.
How to Register a Partnership Firm in India
Partnership Firm requires minimum 2 people for the registration. so let’s talk and learn step by step about the partnership registration.
Choose Name of the Partnership Firm:-
First Step in Partnership Firm registration that is Choosing the partnership firm name. the name should not be identical and similar to another firm. because its can be hurt goodwill or reputation of the firm. you have to also check out that your partnership firm is already trademarked by another company or not. The name must not contain words like Crown, Emperor, Empress, Empire or words expressing or implying the sanction, approval or patronage of Govt except when the State Govt signifies its consent in writing to the use of such words as part of the firm name
Apply and Create Partnership Deed of the Partnership Firm:-
Second Step that is called creating of partnership deed. Partnership deed is a simple agreement between the partners where partners mentioned the terms and conditions about the partnership firms.In the terms and conditions like partnership profit and sharing ratio or any other specific term. The partnership agreement is drafted by the legal advisor and its should be in written on stamp paper and it’s notarized also from the notary.
A Partnership deed need following details which are required for the creation of partnership deed:-
* Name and Address of the firm as well as all the partners
* Nature of business to be carried on
* Date of Commencement of business
* Duration of Partnership (whether for a fixed period/project)
* Capital contribution by each partner
* Profit sharing ratio among the partners
Partners can include the additional clause also in the partnership agreement like:-
* Interest on Partner’s Capital, Partners’ Loan, and Interest, if any, to be charged on drawings.
* Salaries, Commissions etc, if any, payable to partners
* Method of preparing accounts and arrangement for audit
* Division of task and responsibility i.e. the duties, powers and obligations of all the partners.
Documents Require For Partnership Firm:-
- Partners Related Documents CheckList:-
a) PAN Card of the Partners or
b) Adhar Card of the Partners or
c) Voter ID Card
d) Driving License
e)Passport Size Photographs
- Address Related Documents Requirements:-
a) Any Utility Bills.
b) Ownership Proof.
- Some other related information:-
- Name and address of the firm.
- Detailed Business Activities.
- Capital contribution by each partner.
- Profit sharing ratio among the partners.
- Routine Rights, responsibilities of each partner.
- The method of operating Bank Account.
- Time to time info sharing among partners.
- Partnership Deed: – the deed is prepared accordingly the proper format and all the terms is defined. It’s on stamp paper as per Indian stamp act and sign by all the owners and witness.
- Rent Agreement: – Rent Agreement depends on a property so owners have to prepare rent agreement along the sign with an owner of the property.
Step 3: – Apply for the Pan Number:-
its is mandatory for all the firms. you can apply for the pan number online simply with the deed and rent agreement. so after within 15 days income tax department issued pan card at the firm address.
Step 4 :- Opening a Bank Account:-
Most of the banks open a current bank account on the name of the firm on the basis of duly self-attested partnership deed and pan acknowledgement. so it’s a very easy process to open a current bank account for the firm. so basically following docs need for an opening a current bank account:-
- PAN Acknowledgement/PAN Card in the name of the Firm.
- Passport size photographs, self-attested Identity proofs and residence proofs of each signatory.
- Self certified copy of the deed, rent deed along with proof of address in the name of owner of the rented property.[alert]Opening a Current Bank Account Process is very bank to bank so its depend on your bank terms.[/alert]
Step 5 :- Registration of Partnership Deed:-
After opening a current bank, account owners have to register their deed. its a optional thing but without registered of deed owners can not enjoy some features of the partnership firm like :-
- A right arising from a contract cannot be enforced in any Court by or on behalf of firm against any third party.
- A partner cannot file a suit in any court against the firm or other partners for the enforcement of any right/ issue arising from a contract or right conferred by the Partnership Act.
- The firm or any of its partners cannot claim a set-off or other proceedings in a dispute with a third party.
So Owners have to register their firm with the registrar of firms so they can enjoy all the features which above is mentioned.
Note: Partnership deed is registered by Registrar of Firms is option thing so you can also register without registration with the registrar of firms.
How to Register Partnership Firm Online:-
- Place a Request on MyOnlineCA.
- Legal Experts will connect with you via call/mail/chat.
- Submit your documents to myonlineca.
- Get done partnership registration and final documentation.
Hope this article helps you.