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Partnership Registration

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Partnership Registration - An Overview

Partnership firm registration is an agreement between two or more partners to carry a partnership business. Partnership registration is required when two or more parties sign a formal agreement via Partnership Deed to manage and operate a business and share both the profits and losses.

Partnership Registration is beneficial for small enterprises as the incorporation is simple and there are least regulatory compliances which eases the burden on partners.The Partnership business in India was introduced via partnership Act, 1932. Partnership Business is one of the oldest types of business entities in India. A partnership entity can be registered post its formation. As of now, there are as such no penalties for non Registration of a Partnership firm in accordance with the partnership Act. But unregistered Partnership firms are denied certain rights under section 69 of the Partnership Act, 1932 that mostly deals with the effects of non Registration of Partnership firms.

Register Partnership Firm

Requirements for Registration

Process of Registering Partnership Firm

Application form for registration

An application form has to be filed to the Registrar of firms of the particular state in which firm is situated along with applicable fees. The application can be sent to the registrar of firms through post or physical delivery. The application has to be lastly verified and signed by all the partners.

Name Selection

Selection of name is the second process which contains certain conditions need to be followed while selecting the name: 1. The name should not be too similar or identical to an existing firm already registered. 2. The name should not contain words which show sanction or approval of the government.

Certificate of Registration

Registrar on being satisfied with the registration application and other documents will register the firm in the Registrar of Firms and issue the Registration Certificate.

Benefits of Registering Partnership Company

Easy to Incorporate

Faster Decision Making

Less Compliances

Easy availability of Funds

Documents Required

One of the following documents can be submitted as an identity and address proof :

  1. PAN card
  2. Passport
  3. Driving License
  4. Aadhar Card
  5. Voter ID

Documents required to be submitted as a proof of business premises are:

  1. Rent Agreement copy if the office is on rent
  2. Copy of Latest electricity bill
  3. Sale Deed in case partner owns the place

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