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Tuesday, 8 September 2015

PROCEDURE FOR PARTNERSHIP FIRM REGISTRATION

PROCEDURE FOR PARTNERSHIP FIRM REGISTRATION

Partnership firms in India are governed by the Indian Partnership Act, 1932. While it is not compulsory to register your partnership firm as there are no penalties for non-registration, it is advisable since the following rights are denied to an unregistered firm:
• A partner cannot file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act
• A right arising from a contract cannot be enforced in any Court by or on behalf of your firm against any third party
• Further, the firm or any of its partners cannot claim a set off (i.e. mutual adjustment of debts owned by the disputant parties to one another) or other proceedings in a dispute with a third party.
 Registration Procedure: A partnership firm can be registered whether at the time of its formation or even subsequently. You need to file an application with the Registrar of Firms of the area in which your business is located.
• Application for partnership registration should include the following information:
– Name of your firm
– Name of the place where business is carried on
– Names of any other place where business is carried on
– Date of partners joining the firm
– Full name and permanent address of partners.
– Duration of the firm
• Every partner needs to verify and sign the application
• Ensure that the following documents and prescribed fees are enclosed with the registration application.
– Application for Registration in the prescribed Form – I or A
– Duly filled 
Affidavit
– Certified copy of the Partnership deed
– Proof of ownership of the place of business or the rental/lease agreement thereof.
It may be noted here that the name of your partnership firm should not “contain any words which may express or imply the approval or patronage of the government except where the government has given its written consent for the use of such words as part of the firm’s name”.
Once the Registrar of Firms is satisfied that the application procedure has been duly complied with, he shall record an entry of the statement in the Register of Firms and issue a Certificate of Registration. (Sec 59)
The Resister maintained at the office of Registrar of Firms contains complete and up to date information about each registered firm. The Register of Firms is open for inspection by any person on payment of Prescribed Fees. (Sec 66)
Any Person interested in viewing the details of any firm can request the Registrar of Firms for the same on payment of prescribed Fees, a copy of all details of Firm registered with Registrar would be given to the applicant.
It should However be noted that registration with the Registrar of Firms is different from Registration with the Income Tax Department. It is mandatory for all firms to get registered with Income Tax Dept and have Pan Card of the firm.
After obtaining a PAN Card, the Partnership Firm would be required to open a Current Account in the Name of the Partnership firm and operate all its operations through this Bank Account.
Regards,
Jitendra Suthar
jitu.suthars@gmail.com

2 comments:

  1. I have been reading a lot of stuff about it. but it is different presented, i loved to read this. keep it up.

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