A Partnership Firm is the old yet the most preferred business structure. It is a business form that is easiest to incorporate and has very less compliance compared to other business structures. Moreover, it is optional for a Partnership Firm to get registered. In this article we will find answers for what is Partnership Firm? The process for ROF (Partnership Firm) Registration, documents required for ROF registration and benefits of Firm (ROF) registration.
What is a Partnership Firm?
Benefits of Registration of Partnership Firm (ROF Registration)
It is a well-known fact that it is not compulsory to register Partnership Firm. However, it is highly advisable to get ROF registration as a Registered Partnership Firm enjoys certain benefits that an Unregistered Partnership Firm does not have access to. Following are a few benefits of the ROF Registration.
The process for ROF (Partnership Firm) Registration
Step 1: Choose name of Partnership Firm.
The first step towards incorporating a Partnership Firm is to select a different, unique and relevant name according to the business. The name should not be identical with any other existing company / business name. Also, the name of the Partnership Firm should not include any prohibited name as per the law.
Step 2: Drafting of Partnership Deed
The next step towards ROF Registration is to draft a proper Partnership Deed. The ROF registration depends on the Partnership Registration. The clauses of the Partnership Deed should be in accordance with the provisions of the Partnership Act, 1932.
Step 3: Notarize the Partnership Deed
Once you have a well drafted Partnership Deed in hand, the next step would be to execute the same by paying the stamp duty and notarize the same. The Stamp duty should be paid as prescribed under the State Stamp Act where the Business Place of the Partnership Firm is situated. Once the Stamp duty is paid, the deed shall be notarized after providing signature of Partners and witnesses as explained in previous point.
Step 4: Apply for PAN for Partnership Firm
The application for the allotment of PAN for Partnership firm shall be made the Registration of the Partnership Firm. However, a copy of the Partnership Deed shall be supported by the Application for Allotment of Permanent Account Number.
Step 5: ROF Registration
To register the Partnership Firm one must make an application in the Concerned Authority i.e. Registrar of the Firms within whose jurisdiction the place of the business falls. There are different procedure for ROF Registration Gujarat, Maharashtra, Rajasthan, Kerala, Madhya Pradesh, Uttar Pradesh, West Bengal etc. For your reference, the procedure to get ROF Registration in Gujarat is as under:
Documents Required for ROF Registration in India
Though it is not mandatory to get ROF Registration for Firms, it is advisable and advantageous to register a Partnership Firm with Registrar of Firms.
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