procedure of Partnership firm

15 Feb 2020   Admin
procedure of Partnership firm

Registered Partnership Deed

The partnership is the most popular form of business organizations in India. A partnership is easy to set up and has minimal compliance as compared to companies. In the article, we would discuss the Partnership deed and its registration.

What Is Partnership Deed?

A partnership is a formal arrangement by two or more parties responsible for managing a business and sharing its profit and liabilities. Such an arrangement requires an agreement that will provide the guidelines for all future activities. That agreement is known as Partnership deed.

A partnership deed is a record that contains the rights, obligations and functionalities of all the parties involved in a partnership business. It can be either in written or verbal. However, it is advisable to have a writer partnership deed.

Partnership Firm Registration 

Unlike company registration, the registration of a partnership firm is not mandatory. However, if a partnership firm is not registered, it can not avail the benefits available to the registered partnership firms.

To register a partnership firm, an application (signed by all the partners of their agents) in Form No. 1 along with the prescribed fees is to be submitted to the Registrar of the Firms of the State in which firm is situated.

Following are the documents required to be submitted for registration: -

  1. Registration application
  2. Specimen of Affidavit
  3. Certified original copy of Partnership Deed
  4. Proof of place of business

Partnership Registration Fees

In India, the State Government is free to make rules regarding the fees to be given to the Registrar for registration. So the fee for the registration of a partnership depends upon the state where the firm is situated.