Partnership Registration

1. Procedure for partnership firm
2. Documents required for partnership firm
3. About Partnership Firm
4. Partnership Firm – Registration

1. Procedure for partnership firm

STEP 1 > Arrange required documents

STEP 2 > Creation of partnership deed

STEP 3 > Application for PAN

STEP 4 > Application for Registration of firm

STEP 5 > Registration certificate received

2. Documents required for partnership firm

a) Address proof of partners
b) Photo ID proof of all partners
c) Rent agreement of business place
d) NOC from the owner of property

3. About Partnership Firm

Partnership firm governed by partnership act 1932. Partnership where two or more individuals who agreed to share the profits of a business run by all or any one of partner acting for them. All partner jointly or individually liable for debts of partnership firm. Therefore, a partnership consists of three following features:

• Agreement between 2 or more persons
  Partnership is the result of a contract between 2 or more than 2 person. Partnership arise due to contract among partner, not from status, inheritance or operation of law. Agreement can be in oral or writing.
• There must be share of profit
  Agreement to carry on business must be for objective of sharing profits between ALL partners. There would be no partnership where the businesses is run for Non-profit objective. However partners can agree to share profits in any ratio. In which ratio Profits/losses are to be shared should be clearly mentioned in the partnership deed. In the absence such instruction, the provisions of the Partnership Act, 1932 would apply which direct that the profits/losses should be shared equally between all partners.
• Mutual Agency
  Partnership business must be Run by all or any of them. Every partner acts as principle and agent for all other partners of firm. An act done by any partners is binding on all other partners and the firm as well. So, All partners is bound by the act of other partners.

4. Partnership Firm – Registration

Registration is not mandatory under Indian partnership act 1932 but in case non registered firm, following rights are not available:

• In case of dispute, Partner of registered partnership can sue other partners and firm.
• The registered firm can also sue third parties and its partners.