Partnership Firm Reg.
Are you thinking to start a business in partnership type? The partnership will give you the rights to add multiple partner and minimum compliances.
About This Service
Always remember that a partnership firm is much easier to form because the agreement is very less when compared to other companies.
What is a partnership firm?
A firm or company which is established between two or more partners with a motive of earning profit is known as a partnership firm. It is not necessary to register a partnership firm but if you want to enjoy amazing benefits then you need to register.
Partnership deed is mainly the legal document that is made to form a partnership firm. In India, there is an Indian Partnership Act 1932 which is a governing law and regulates the partnership firms.
According to the Indian Partnership Act 1932, a partnership is a relation between persons who have decided to share the earnings of a business that is agreed on by all or any of them acting for all.
To enter into a partnership firm, for a banking business the maximum number of members are 10 and 20 for other businesses. Always remember that the partnership firm is not a distinct legal entity but the partners are.
A partnership firm can never be a debtor or creditor and can also not own a property. In case, the number of partners decreases below 2 due to the death or resignation of a partner then the partnership firm can be dissolved.
How to register for the partnership firm?
You need to submit an application form along with fees to the Registrar of Firms of the state in which the firm is located. All the partners need to sign the application.
Few documents will be required and if the registrar is satisfied with the documents the firm will be registered in the Register of Firms and a Certificate of Registration will be given.
Outstanding benefits of Partnership registration
There are several benefits of partnership firm registration and some of them are stated-below:
- The partnership firm is formed based on a partnership deed
- There is a combined management
- No compulsion for registration
- All the profits and losses are shared between the partners
- Restraint on share transferability
- Limitless liability of partners
Thus, you can get the partnership registration easily within a short time from BusinessBadhega.com.
|Drafting of deed
|MSME Registration / Udyam Registration
|Bank a/c Opening Support
What is the Partnership Firm ?
A partnership firm is an organization of two or more persons managed by any one or all of them with the intention to run a business or industry and share the profits.
What is the maximum and minimum number of persons to form a partnership firm?
There must be a minimum of 2 persons to form a partnership firm. If the firm is intended for financial transactions maximum of 10 and for other purposes a maximum of 20 persons can form a firm (See Sec.11 (2) of Company law).
What should be the duration of a firm?
A partnership firm may be for any definite or indefinite duration. If no duration is mentioned, it shall be at `will’ (See Sec.7 of Indian Partnership Act 1932).
Is it necessary to form partnership firm through a document only?
Is it compulsory to register partnership firm?
No. If partnership firm not registered it will lead to the following conseQ uences: a) It will not be possible to sue one partner against another partner or against the firm and vice versa in the court of law to claim right. b) Partnership firm cannot use a third party in the court of law for the enforcement of it’s right (See Sec.69 of Partnership Act 1932).
Who has the authority to register partnership firm? To whom application is to made and in which form?
District Registrar is Registrar of Firms in his District. The application may be made in Form No.1 for registration (See Sec. 57, 58 of Indian Partnership Act 1932).
How and in what manner application is to be made for registration of partnership firm? Is there time limit for it?
Application to be given to the Registrar of the District in which it is intended to be formed. There is no time limit.
Will certificate of registration be given?
An acknowledgment will be issued in Form C (See Sec.10)
Can a firm be given any name?
Except names like Crown, Emperor, Empress, Imperial, King, Queen Royal pr any name signifying authority of Government any name may be given (See Sec.58 of Indian Partnership Act 1932).
What are the other forms of registration and procedure?
Change with name, place, the opening of branches and closure, change in the partners or change in their address, the release of minor’s partnership, and dissolution of a partnership may be registered (See Sec.60, 61, 62, and 63 of the Act).