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PARTNERSHIP FIRM REGISTRATION SERVICES OVERVIEW IN AHMEDNAGAR
A partnership firm is one of the most important forms of a business or an organization which is formed with two or more persons to run a business with a view to earning a profit. A partnership is easy to form and compliance is minimal as compared to Companies. Each member of such a group is known as a partner and collectively known as a partnership firm. These firms are governed by the Indian Partnership Act, 1932. Feature of Partnership Firm Association of two or more persons- A partnership is an association of two or more persons who agree to carry on business and share profits and losses. The Companies Act, 2013 prescribes that the maximum number of partners in a firm can be 50. Business – The partnership is established to carry on lawful business. The business includes trade, vocation, and profession. Thus, joint ownership in the property held not for sale or running of charitable clinics is not business. Agreement- Partnership comes into existence by an agreement, either written or oral. The terms and conditions of the agreement among partners are the basis of their relationship. The partnership may be for a venture, for a period, or at will. Partnership Deed is the written form of agreement. Business may be carried on by All or Any of them Acting for All - It means that the partner is a principal as well as an agent of other partners. Each partner is a principal and an agent in the sense that his acts are binding on other partners and similarly he is bound by the acts of other partners. Sharing of profits - Profits of the business are shared by the partners in an agreed ratio. The term ‘profits’ includes both profits earned and losses incurred by the firm. Liability – Liability of Partners is unlimited. It means that partners are liable for the firm’s debts jointly with other partners and also individually in their own capacity. What does Registration of Partnership Firm mean? There is an authority by the Government – Registrar of Firms which registers any new partnership firm which comes into the market so that a record is maintained about how many Partnership firms are existing in the country, their names, their locations, and their working. A Registrar of Firms is located in each state of India. It is generally located in the capital of the State but can also be located anywhere else other than the capital. Basically, when the name of the partnership firm enters the Registrar of Firms, it is known as Registration. Registration of a firm is not compulsory as per the Indian Partnership Act, 1932 but it is advisable to get it done. If the firm is registered, the partner can sue the outsider with more ease. If the firm is not registered, it's not possible to file a case against an outsider. There is no timeframe to register the firm. The registration of the Firm can be done before the commencement of the business or at any time during the continuation of the Partnership. Are there any grounds on which a partnership firm can be invalid? If the course and object of the Partnership business is illegal, they may dissolve the firm by deeming it invalid. Also if the partnership firm is not registered, it can be deemed invalid and dissolved.
Steps To Obtain partnership firm IN AHMEDNAGAR
- Filing Application
- Pay the Fee
- Approval from Registrar
Application to the Registrar of Firms via the prescribed form (Form A). Nowadays this facility is available online. The application must contain some basic details about the firm such as- Name of the Partnership Firm, Name, and address of all partners, Place of business (address of main and branch offices), Duration of the partnership, Date of joining of partners, Date of commencement of business.The duly signed copy of the Partnership Deed (which contains the terms and conditions) must be filed with the registrar
Deposit/pay the necessary fees and stamp duties
Once the registrar approves the application, the firm will be into the records and the registrar will also provide a certificate of incorporation.
Estimate Time REQUIRED FOR PARTNERSHIP FIRM REGISTRATION
The time for registration of a Partnership Firm in Ahmednagar can take 12 – 14 days time period. However, The time taken to issue a Certificate of Incorporation varies from State to State.
Documents Required for PARTNERSHIP FIRM REGISTRATION
Application for registration of partnership (Form 1)
Specimen of affidavit
The electricity bill of the firm you want to get registered or documents on rental/lease agreement. It acts as a proof of the principal place of business.
Certified original copy of the Partnership Deed
Documents required for the Partnership Deed
The KYC documents of all the partners mentioned in the Partnership Deed. KYC documents include PAN Card, Aadhar Card, Passport Size Photo, Email ID, and mobile number. If the Registrar is satisfied with the documents, he will register the firm in the Registrar of Firms and issue a certificate of registration. Registrar of Firms contain up to date information of all firms and can be viewed by everybody on payment of certain amounts of fees.
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FAQ
A Partnership Firm is ideal for small-sized businesses in the unorganized sector with simple registration and multiple promoters. A Partnership is coming together of an association of persons for undertaking business activities for profit. The documents essential for the operation of a Partnership firm is a Partnership Deed which may or may not is registered. This type of business form, the liabilities, and the profit of the business are shared by the partners of the firm in a particular ratio as agreed upon in the Partnership Deed.
Partners in a partnership firm can be identified in the following categories:
Active partner: He is present in the workings of the partnership in every step. He plays the most important role and is majorly responsible for all the workings.
Sleeping partner: He does not participate actively in the proceedings of the partnership. They are not known to the public. They work in the background.
Nominal partner: He is a partner by name only. That is he plays no part in the workings of the firm. He is not interested in workings nor he shares the profit.
Partner in profits: He is when a partner is entitled only to the profits as agreed by all the other partners. He is not liable for any kind of loss.
Minor partner: He is below eighteen years of age and is entitled to the benefits of the partnership only. There are restrictions like no participate or intervene in the workings of the firm.
Other partners: Generally, including silent partner. They don’t want to be known to the outside world. They sit back and work.
A Partnership is a business structure in which two or more individuals manage and operate a business following the terms and goals set out in the Partnership Deed. Partnership registration is easy and is prevalent among small and medium-sized businesses in the unorganized sectors. Partnership Act, 1932 explains the structure of a Partnership firm by providing all the necessary provisions to run the same
The distinction between partnerships can be done based on two criteria. They are as follows:
With Regard to the Duration of the partnership – either Partnership at Will or Partnership for Fixed Duration
With regards to the extent of the business carried by the partnership – either General Partnership or Particular Partnership
A registered partnership firm can take a set-off (i.e. mutual adjustment of debts owed by the disputant parties to one another) or other proceedings in a dispute with a third party. Hence, it is suggested for partnership firms to get it registered sooner or later. Also, a registered partnership firm can file a suit in court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act. An unregistered Partnership Firm can get registered at any point after its establishment.
No, registration of a partnership firm is not at all compulsory but it is always suggested to do it. Registration is usually done by the partners as it brings certain advantages to the firm. However, non-registration is not punishable.
There is no restriction to whether two partnership firms can have the same name or not. But it is generally not preferred and expected of the parties to keep the same name as it leads to intellectual property issues like a trademark.
Even though the stamp duty paper charges for partnership deeds vary from state to state, the deed has to be notarized with a minimum value of Rs. 200, it can be more depending on the market value of the state. The stamp duty paper is compulsory to be paid to the sub-registrar under Section 46 of the Indian Stamp Act,1899.
Partnership deeds can be attested by either a Judicial Magistrate or a Chartered Accountant. The deed must be signed by all the partners.
The biggest disadvantage of a partnership firm is that the liability of all the partners is unlimited. Each partner is jointly and severally liable for all the debts.
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