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Partnership firms in India are governed by the Indian Partnership Act, 1932. While it is not compulsory to register your partnership firm as there are no penalties for non-registration, it is advisable since the following rights are denied to an unregistered firm:
- A partner cannot file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act
- A right arising from a contract cannot be enforced in any Court by or on behalf of your firm against any third party
- Further, the firm or any of its partners cannot claim a set off (i.e. mutual adjustment of debts owned by the disputant parties to one another) or other proceedings in a dispute with a third party.
Partnership Registration Procedure in India :
A partnership firm can be registered whether at the time of its formation or even subsequently. You need to file an application with the Registrar of Firms of the area in which your business is located.
- Application for partnership registration should include the following information:
– Name of your firm
– Name of the place where business is carried on
– Names of any other place where business is carried on
– Date of partners joining the firm
– Full name and permanent address of partners.
– Duration of the firm
- Every partner needs to verify and sign the application
- Ensure that the following documents and prescribed fees are enclosed with the registration application :
– Application for Registration in the prescribed Form – I
– Duly filled Specimen of Affidavit
– Certified copy of the Partnership deed
– Proof of ownership of the place of business or the rental/lease agreement
It may be noted here that the name of your partnership firm should not “contain any words which may express or imply the approval or patronage of the government except where the government has given its written consent for the use of such words as part of the firm’s name”.
Once the Registrar of Firms is satisfied that the application procedure has been duly complied with, he shall record an entry of the statement in the Register of Firms and issue a Certificate of Registration.
The Documents required to register the partnership Firm are as follows:
- ID proof of all the Partners – Voter ID or DL or Passport
- Partnership Deed
- One electricity bill or water bill of office premises.
- NOC from the landlord of the premises.
- Name of the firm and nature of business.
Topic of the page:”Partnership Registration in Patna Bihar Ranchi Jharkhand”
This article is written by: ACS Prince Kunal
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