PARTNERSHIP PROCEDURE

When two or more persons is in a relationship have agreed to constitute or run a business with share of profit according to their participation is called “Firm”. If the two or more persons up to 20 persons agreed to do any business together can form a partnership through the agreement in writing. Registration of Partnership is compulsory but the registered partnership has more benefits or advantages than the unregistered partnership.

REGISTRATION OF PARTNERSHIP:

The Registration of partnership is optional by Law, but there are some de-merits for un-registered partnership like if there is any dispute arise between or among the partners then the dispute can not be resolved by the civil court due to the non-registration of partnership. Neither the partnership firm suit any other party for the enforcement of any rights arising from the contract due to the un-registration, but the third party may file suit against the firm.

PROCEDURE FOR REGISTRATION:

Step 1: Lease Agreement/Ownership agreement of office of the firm is used as a proof.

Step 2: Prepare a Partnership deed on the stamp paper Value of 1000 signed by the all partners.

Partnership deed: All the rights of partners must be documented in the shape of partnership deed. A copy of partnership deed must be help by each partner and at the time of registration of partnership, a copy of partnership deed is submitted with an application to the concerned registrar. A partnership deed is also be considered as “Article of Partnership” and the Partnership deed contains the following information,

• The name of the firm
• The nature of business
• The address at which the business to be conduct
• The amount or value of capital that contributes each partner whether in cash or in kind. If the capital is in kind than the full description of property should be mentioned.
• Duration of partnership
• Name and address of each partner
• Ratio of profit or loss
• The amount or percentage of interest
• The amount of salary which is received by the partners
• Treatment and valuation of goodwill incase of insolvency of partnership.
• In case of death, admission and retirement of partner follow the rules as may be prescribed.
• Keeping and preparation of proper books of accounts.

Step 3: Fill the form no. 1 Partnership act 1932.

• The name of the firm
• Principle place of the business
• The name and addresses of place where the firm conducted its business
• The name and addresses of partners
• Date when the partners joined the firm
• Duration of partnership

Deposit/Pay the necessary fees and stamp duties.

Once the registrar approves an application, the firm will be entered into the records of partnership firm and the registrar issues the certificate of incorporation.