Partnership Firm Registration

Article explains Areas in which Partnership agreements can be formed, Benefits of getting the partnership firm Registered, Requirements for Partnership Firm Registration and Documents required for Partnership Firm Registrations.

A Partnership is an arrangement where parties, known as partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest based organizations, schools, government or combinations. Organizations may partner together to increase the likelihood of each achieving their mission and to amplify their reach. A partnership may result in issuing and holding equity or may be only governed by a contract.

Areas in which Partnership agreements can be formed-

Business: two or more companies join  in a joint venture or a consortium to i) work on a project (e.g. industrial or research project) which would be to heavy or too risky for a single entity, ii) join forces to have a stronger position to a market, iii) comply with specific regulations (e.g. in some emerging countries, foreigners can only invest in the form of partnership with local entrepreneurs). In this case, the alliance may be structured in a process comparable to a mergers & acquisitions transaction. Politics (or geopolitics): In what is usually called an alliance, government may partners to achieve their national interests, sometimes against allied governments holding contrary interests, as occurred during World War II and the cold war.

Knowledge: In education, accrediting agencies increasingly evaluate schools, or universities, by the level and quality of their partnerships with local or international peers and a variety of other entities across societal sectors.

Individuals: Some partnerships occur at personal level, such as when two or more individuals agree to domicile together, while other partnerships are not only personal, but private, known only to the involved parties.

Benefits of getting the partnership firm Registered

• A partner of a regd. Firm can file a suit against the firm or others partners.
• The firm can file a suit against third parties.
•  The firm can file a case against the partners.

Note: These above benefits cannot be availed by an unregistered partnership firm. Hence in view of these consequences, it is advisable to get the firm registered.

Requirements for Partnership Firm Registration:

•  Minimum no. of two partners competent to contract.
•  Name of firm.
•  Duration of partnership, if any.
•  Nature of business and locations. No requirement of minimum capital contributions.
•  Duties and obligations of partners.
•  Terms governing admission, Retirements and Expulsion of a Partner.
•  Procedure of dissolution of firm.
•  Methods of solving Disputes.
•  Interest of Capital and on Drawings.
•  Salaries and Remuneration of Partners.
•  Share of Profits and Losses.

Documents required for Partnership Firm Registrations:

• Copy of Pan Card of partners.
•  Copy of Aadhar Card/ Voter identify card.
•  Passport size photograph of partners.
•  Electricity/ Water bill/ Telephone bill/ Latest bank statement as proof of Registered Office (Business place).
•  Copy of sale deed/ property deed (if owned property), otherwise the landlord NOC if the property is taken on rent/ lease.

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You may contact the author for further information at +91-9899595719 or Taxwizersconsultant@gmail.com.

Disclaimer: The above article is only for information purpose and is on based on the author’s interpretation of the relevant provision. The same should not be considered as professional advice.