Partnership Firm Registration Online

Partnership Firm Registration

Generally, the Partnership firm is a firm that is collectively owned by Partners and operates the business, and shares their liabilities and responsibilities with each other based on the terms and conditions as per the Partnership Deed. Partnership firms are of two different types, registered and non-registered firms and it is not mandatory to register but it is highly recommendable to go for Partnership firms registration online in India, to enjoy various benefits from the government.

Advantages of Partnership Firm Registration

Funds Raising:

Compared to other firms or business structures like a proprietorship firm, funds can be easily raised in a registered partnership firm. Banks consider this type of firm more favorable for approving credits and loans and also having multiple partners in the firm pay the way to get a more feasible contribution.

Easiest Business Structure:

Partnership firms are broadly considered as one of the easiest business structures as they can be incorporated by simply formulating a partnership deed for which registration process is necessary. Therefore, it can be formed anytime when the partners are ready to contribute and just with very minimum documentation whereas in the case of other types of firms it requires about 10-15 days to cover up all the formalities such as obtaining DSC, DIN, DPIN name approval, and so on.

Decision Making:

It’s an easier and simple process to make a decision in a partnership firm registration in India as you don’t have to follow any rules and regulations to pass a resolution in the firm. A partner of the firm can perform transactions or money-related activities on behalf of the partnership firm without any consent of other designated partners.

Easy Management:

All the partners of the partnership firm are assigned with their own works and responsibilities considering their capability, as drafted in the partnership deed. Partnership deed aids the partners of the firm to manage the business smoothly without any type of conflicts and disputes.

Documents Required for Partnership Firm Registration

Partners need to submit the documents when they are registering the partnership firm, such as partnership deed, PAN Card of Firm, Address Proof of Partners, Office Address Proof, GST Registration, Current checking account alongside an affidavit certifying all the small print mentioned in documents and deed correctly.

Partnership Deed

A partnership deed is a kind of agreement formed within the partners which defines their rules, duties, methodology, functions, and shares. It helps to avoid future conflicts and disputes between the partners. It is created and signed by all the members on the Judicial Stamp Paper that costs around Rs. 2000/-

PAN Card Of Partners

All the designated partners of the firm are required to submit their PAN cards as proof of their identity.

PAN Card Of Firm

Designated Partners of the Firm need to apply for the PAN card of the firm. They have to file Form 49A to apply for a PAN of the firm. They should visit - https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html

In case the authorized partner signs the application using a DSC, it can be filed in the online mode also. Besides, the application along with the requisite documents must be sent to the nearest PAN processing centers accessible across the country.

Address Proof Of Partners

All the partners need to submit a replica of their address proof which may either be their aadhar card, voter id, card, driver's license, etc. The address and details given in the document should match PAN card details.

Office Address Proof

Address proof of the respective working place has got to be submitted. In the case of rented property, an applicant has to submit a rent agreement along with a utility bill such as electricity, water, gas bill, property tax bill, etc. Apart from it he/she has to submit the No Objection Certificate (NOC) from the landlord. If the place is owned by any partner or partners then the applicant has to submit a utility bill along with a NOC.

GST Registration

The firm needs to submit a PAN card number, address proof of the firm, and identity & address proofs of a partner in order to obtain GST registration. An authorized signatory will sign the application either using DSC or E-Aadhar verification.

Current Bank Account

The firm needs to submit the following documents for opening a current bank account, which is as follows:-

1. Partnership deed
2. PAN Card of the Firm
3. Address Proof of the firm
4. Identity proofs of all the Designated Partners
5. Partnership registration certificate (in a case registered)
6. Any kind of registration document issued by the Government (GST Certificate will be Valid)
7. Copy of electricity bill, water bill, or phone bill (not quite 3 months old)
8. Authorization letter on the letterhead of the Partnership firm authorizing a partner being the authorized signatory for the present checking account.

Registration Procedure

Registration Procedure of Partnership Firm in India

Select An Appropriate Name For The Firm

Select a name for your firm that is unique and should not have words like an emperor, empire, crown, empress, or any other words which show sanction or approval of the government.

File An Application

First of all, the applicant has to file an application in Form 1 of partnership firm registration. An application is filed with the Registrar of Firm of the respective state where the firm is located. The application is filled in the prescribed format along with specific fees amount.

Preparation Of Partnership Deed

The partnership deed is prepared with the consent of all the partners on the stamp paper. Below Given Components are the Parts Of Partnership Deed:

1. Details of the partners and firm such as their name, address, qualification, etc.
2. Nature of the firm or business activities involved
3. The capital contribution made by all partners
4. Shares/Interest of all the partners
5. Profit/loss sharing ratio among all the partners
6. Rights, duties, salaries, commissions, or payable amount of the partners
7. Details of loans provided by the partners
8. Circumstances or process that would be followed in case of death or retirement of any designated partner
9. Other clauses made with mutual consent of all the partners

Submission Of The Documents

Submit all the prerequisite documents alongside the partnership deed you've got prepared.

Verification Of Documents And Issuance Of Registration Certificate

After submission, documents are closely verified by the authorities. If everything falls under the provisions of the act, the registration certificate will be issued to your firm. kanakkupillai provides Partnership Firm Registration Online service, to avail of the service contact our expert consultant.