Many say that a partnership firm is nothing without registration, which stands true in many cases since the nature of businesses is very complex these days. You need to have certain ground rules and criteria on which specific performance from your partner or media can be tamed and altered. A good partnership deed that is registered following the guidelines of the Indian partnership act in the ministry of corporate affairs has got major perks.
Steps involved in partnership deed registration:
Step one: Deciding on the name of the partnership firm
It is important to select a name that is valid and has not been selected by any other partnership firm so choosing a name is a task in itself. You can check out the ministry of corporate affairs website if you are unsure of the availability of the name of the firm you have chosen.
Step 2: Preparing a good partnership deed draft.
If you are looking to register your company then you need to be prepared with a good partnership deed Draft. This will include the name and all the details of your firm and partners, the Profit and loss sharing ratio, nature of your business all the rules, regulations and other details that might be necessary for working for a good partnership firm.
Step 3: Filing of an application for a pan card in the name of a partnership firm
As sole proprietor is a separate legal entity from that of the proprietor itself, the same is the case with partnership firms as well. All the tax and government-related issues will be dealt with Firm itself, hence filing a pan card are advisable.
Step 4: Proceed towards registration application filing
You are requested to file an official application that would contain the address of your business name nature date of commencement. This form is further addressed and taken over by the registrar of your local area.
Step 5: Submission of all important documents
Along with your application for registration, you’re also expected to deposit the following documents:
- Attested copy of your original partnership deed
- Pan card addressed to the name of your form
- Specimen of Affidavit
- Pan cards of all partners and their address proof
- All the proof of address ownership and lease rated documents in relation to a partnership firm.
Step 6: Payment of stamp duties and fees
Registration of a partnership firm is not an easy task, it requires payment of stamp duties and registration fees. Your registration is not complete until and unless you have made these payments on behalf of the firm.
Step 7: Legalising your deed
To legalise your registration you’re expected to write it understand paper duly signed by your partners in the firm saying they agree to everything written this deed. The value of the stamp paper will depend upon the state to state and you need to submit one copy of that document to the registrar of your local authorities.
Step 8: Procurement of certification from the registrar
This is the last of the final step, if all your documents and the steps I had this have been followed properly then you will be issued a certificate of registration. This will allow you to lawfully conduct business all over India.
What are the benefits of registering a partnership firm?
One might question if they have been disturbed partnership deed and why they need to register their partnership firm, well there are added advantages of doing so and they are:
- If their partnership firm is registered they will have the benefit of risk-sharing, unlike install Pty where a single person is considered as a person with unlimited liability.
- Helps in managing dispute resolution and if things go hay wired they can even sue each other for non-performance on their part.
- With the help of the registration of your partnership firm, you can even have the ability and licence to sue the third party. It can also enable them to make or enforce claims.
- The procedure involved in dissolution or shutting down a firm is quick. You’re able to realise the value of assets and money distribution becomes easier.
Grounds on which any partnership firm can be deemed as invalid
There are times when any partnership firm that is built for carrying on any unlawful business or that has no registration under its name, such a performance can be regarded as an invalid partnership. The court of law never recognises such kinds of partnership firms and as soon as they are discovered, it is ordered to dissolve them as soon as possible. In cases of unregistered partnership firms, they’re even asked to get registered.
Registering a partnership firm can be regarded as an optional task According to the Indian partnership but looking at the practicality of the world we’re living in, registration of any partnership deed is at most important. It not only enhances the nature of your work but also makes sure that it is protected from people who have malicious intent. Hence it is advisable to get your partnership from registered and enjoy all the benefits that it has to offer.