A partnership is easy to form as no cumbersome legal formalities are involved. Its registration is also not essential. However, if the firm is not registered, it will be deprived of certain legal benefits. The Registrar of Firms is responsible for registering partnership firms. The minimum number of partners must be two, while the maximum number can be 20. A partnership is formed by an agreement, which may be either written or oral. When the written agreement is duly stamped and registered, it is known as "Partnership Deed". Ordinarily, the rights, duties and liabilities of partners are laid down in the deed. But in the case where the deed does not specify the rights and obligations, the provisions of The Indian Partnership Act, 1932 will apply.
BENEFITS OF PARTNERSHIP FIRM REGISTRATION
Ease of Formation
Registration is not compulsory in the case of Partnership firm. It can be formed without any legal formality and expenses. Thus, it is simple and economical to form and operate.Larger Resources
Due to the more number of members, the partnership firm has larger resources for the business operations as compared to sole proprietorship.Flexibility in Operations
Due to the limited number of partners, there is flexibility in the operations of business as the partners can amend any objectives or change any operations any time by mutual consent.Better Management
Business of a partnership firm is very well managed by all the partners as they take interest in the daily affairs of business because of the ownership, profit and control.Sharing of Risk
In partnership, every partner bears the risks individually as it is easier compared to sole proprietorship.Lesser Compliances
Partnership firm are not required to file annual accounts with the registrar unlike LLP or a company.FREQUENTLY ASKED QUESTION
In Registered partnership 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.
Duly filled Specimen of Affidavit.
Certified copy of the Partnership deed on appropriate non judicial stamp paper.
Proof of ownership of the place of business or the rental/lease agreement thereof.
Affix court fee stamp & payment of prescribed fee for registration by demand draft.
And
In Unregistered Partnership Firm
A Partnership deed on appropriate non judicial stamp paper duly signs by every partner required to be notarized by notary is require executing and from that date Partnership Firm deemed to be registered.
Every partner needs to verify and sign the application & ensure that the following documents and prescribed fees are enclosed with the registration application
In Unregistered Partnership Firm
A Partnership deed on appropriate non judicial stamp paper duly signs by every partner required to be notarized by notary is require executing and from that date Partnership Firm deemed to be registered.
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.
In Registered partnership 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.
Duly filled Specimen of Affidavit.
Certified copy of the Partnership deed on appropriate non judicial stamp paper.
Proof of ownership of the place of business or the rental/lease agreement thereof.
Affix court fee stamp & payment of prescribed fee for registration by demand draft.
And
In Unregistered Partnership Firm
A Partnership deed on appropriate non judicial stamp paper duly signs by every partner required to be notarized by notary is require executing and from that date Partnership Firm deemed to be registered.
Every partner needs to verify and sign the application & ensure that the following documents and prescribed fees are enclosed with the registration application
In Unregistered Partnership Firm
A Partnership deed on appropriate non judicial stamp paper duly signs by every partner required to be notarized by notary is require executing and from that date Partnership Firm deemed to be registered.
In Registered partnership 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.
Duly filled Specimen of Affidavit.
Certified copy of the Partnership deed on appropriate non judicial stamp paper.
Proof of ownership of the place of business or the rental/lease agreement thereof.
Affix court fee stamp & payment of prescribed fee for registration by demand draft.
And
In Unregistered Partnership Firm
A Partnership deed on appropriate non judicial stamp paper duly signs by every partner required to be notarized by notary is require executing and from that date Partnership Firm deemed to be registered.
Every partner needs to verify and sign the application & ensure that the following documents and prescribed fees are enclosed with the registration application
In Unregistered Partnership Firm
A Partnership deed on appropriate non judicial stamp paper duly signs by every partner required to be notarized by notary is require executing and from that date Partnership Firm deemed to be registered.
In Registered partnership 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.
Duly filled Specimen of Affidavit.
Certified copy of the Partnership deed on appropriate non judicial stamp paper.
Proof of ownership of the place of business or the rental/lease agreement thereof.
Affix court fee stamp & payment of prescribed fee for registration by demand draft.
And
In Unregistered Partnership Firm
A Partnership deed on appropriate non judicial stamp paper duly signs by every partner required to be notarized by notary is require executing and from that date Partnership Firm deemed to be registered.
Every partner needs to verify and sign the application & ensure that the following documents and prescribed fees are enclosed with the registration application
In Unregistered Partnership Firm
A Partnership deed on appropriate non judicial stamp paper duly signs by every partner required to be notarized by notary is require executing and from that date Partnership Firm deemed to be registered.
In Registered partnership 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.
Duly filled Specimen of Affidavit.
Certified copy of the Partnership deed on appropriate non judicial stamp paper.
Proof of ownership of the place of business or the rental/lease agreement thereof.
Affix court fee stamp & payment of prescribed fee for registration by demand draft.
And
In Unregistered Partnership Firm
A Partnership deed on appropriate non judicial stamp paper duly signs by every partner required to be notarized by notary is require executing and from that date Partnership Firm deemed to be registered.
Every partner needs to verify and sign the application & ensure that the following documents and prescribed fees are enclosed with the registration application
In Unregistered Partnership Firm
A Partnership deed on appropriate non judicial stamp paper duly signs by every partner required to be notarized by notary is require executing and from that date Partnership Firm deemed to be registered.
A partnership firm is not required to get statutory audit of their accounts. However tax audit is required is turnover is more than the limit prescribed
Any person who is an Indian citizen and a Resident of India can become partner in a partnership firm. However Non-Resident Indians can only invest in a partnership with after obtaining prior approval of the Government.
Any person who is an Indian citizen and a Resident of India can become partner in a partnership firm. However Non-Resident Indians can only invest in a partnership with after obtaining prior approval of the Government.
Any person who is an Indian citizen and a Resident of India can become partner in a partnership firm. However Non-Resident Indians can only invest in a partnership with after obtaining prior approval of the Government.
Any person who is an Indian citizen and a Resident of India can become partner in a partnership firm. However Non-Resident Indians can only invest in a partnership with after obtaining prior approval of the Government.
Any person who is an Indian citizen and a Resident of India can become partner in a partnership firm. However Non-Resident Indians can only invest in a partnership with after obtaining prior approval of the Government.
Yes, an existing partnership firm can converted into a company or LLP.
