Partnership

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Partnership Firm Registration

Overview:
A general partnership is a corporate structure in which two or more people manage and operate a company in accordance with the partnership deed’s provisions and objectives. This structure is thought to have lost its relevance since the introduction of the limited liability partnership (LLP) because the partners in a general partnership firm have unlimited liability, which means they are personally liable for the debts of the business. However, low costs, ease of setting up, and minimal compliance requirements make it a sensible option for some, such as home businesses that are unlikely to take on any debt. Registration is optional for general partnerships. Contact our Vakilsearch experts now to know the recent partnership deed format.

Timeframe
The partnership firm registration process takes about 10 to 12 working days, depending on departmental approval and reverts from each department.

Name of the Partnership Firm
Any name can be given to a partnership firm as long as you fulfil the following conditions:

The name shouldn’t be too similar or identical to another company in the same industry
It also shouldn’t contain words like emperor, crown, empress, empire, or any other phrases that imply official authorisation or permission.
Checklist for Partnership Firm Registration
Drafting of partnership deed
Minimum two members as partners
Maximum number of partners equal to or less than 20
Selection of appropriate names
Principal place of business
PAN card and bank account of the firm
Initial investment to start the firm.
Documents Required for the Registration of a Partnership
Application for registration of partnership (Form 1)
Certified original copy of partnership deed
Specimen of an affidavit certifying all the details mentioned in the partnership deed and documents are correct
PAN card and address proof of the partners
Proof of principal place of business of the firm.
If the documents satisfy the registrar, the firm will be entered into the register of firms and a certificate of registration will be issued.

Benefits of a Partnership
Minimum Compliance

For general partnerships, there is no need for an auditor to be appointed or, if the company is still in the process of registration or is still unregistered, annual accounts filing with the registrar is not necessary either. Annual compliances are also lower when compared to an LLP.

Simple To Begin

A general partnership can be formed within 2-4 business days, with an unregistered deed of partnership. However, registering for the event offers its own set of benefits.

Comparatively Economical

A general partnership is substantially less expensive to start than an LLP. It will still be cost effective in the long term because the compliance needs are minor.

How to Register Partnership Firms in India
Step 1: First, a member of our Vakilsearch team will give you an overview of the process and present you with a list of essential documents for registration
Step 2: Documents can be submitted electronically via our mobile application or our website
Step 3: After the documents have been verified, a partnership deed is prepared and given to the partners for signatures
Step 4: All partners must sign the contracts on stamp paper and upload a copy to our systems
Step 5: Once the signed partnership deed is available, it is registered with the appropriate registrar of firms, and the partner is given a certificate of registration.
Why Vakilsearch?
Vakilsearch can help you start a partnership firm from start to finish
We are capable of advising and serving you, even as your company grows and expands
You can reach us at any time. You can contact us via text, whatsapp, email, or phone
We place a great value on ethical business operations
We believe that flexibility leads to greatness, so we customise all of our services to each client’s individual needs.

FAQs on Sole Proprietorship

A partnership firm is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership deed that may or may not be registered.
 
The partners in a partnership firm are the owners, and thus are not a separate entity from the firm. Any legal issues or debt incurred by the firm is the responsibility of its owners, the partners.
 
 
A partnership must have at least two partners. A partnership firm in the banking business can have up to 10 partners, while those engaged in any other business can have 20 partners. These partners can divide profits and losses equally or unequally.
 
 
The registration of a partnership firm in India can take up to 10 to 12 working days. However, the time taken to issue a certificate of incorporation may vary as per the regulations of the concerned state. The registration of a partnership firm is subject to government processing time which varies for each state.
 
 
 
Minimum of 2 persons and maximum of 20 is required for the formation of a partnership firm.
 
 
The individuals who are residing in India can only become partners or members in a partnership firm. Foreign individuals who want to form their business in India can choose private limited companies.
 
 
 
There is no minimum capital requirement for the registration of a partnership firm in India.
 
 
 
 
Often, if the partnership agreement is not registered, the court may deem a partnership invalid. If the object of the business is illegal, the court may consider the partnership invalid and dissolve the partnership.
 
 
 
 
Every partner is jointly and severally accountable for any acts/activities of the firm committed throughout the course of business while he or she is a partner. This means that if a third party is injured or a penalty is imposed during the course of business, all partners will be held accountable, even if one of the partners caused the injury or loss.
 
 
 
 
 

Acknowledgment

A statement, written or oral, made before a person authorised by law to administer oaths (such as a notary public).

Employment agreement

An agreement between an employer and an employee. This differs from other agreements, in that it is governed by employment law, which may take precedence over standard contract law.

Dissolution

The termination of a partnership.

General partner

A partner in a limited partnership who has authority to engage in operating the business.

Instrument

A legal term for a document.

Partnership at will

A partnership in which the partners have not agreed to remain partners until the expiration of a definite term or the completion of a particular undertaking.

Registered office

The official address of the company, as designated with the secretary of state. Any documents delivered to this address are considered to be legally served by the company.

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