A partnership firm is a form of business where two or more individuals come together to carry out a business for profit. This kind of business form is governed by the Indian Partnership Act of 1932. Key characteristics include a mutual agreement, joint ownership, profit-sharing, and unlimited liability of the partners.
This type of partnership firm involves the distribution of profits and liabilities among its members, making it a typical choice for small businesses and entrepreneurs.
Advantages of Partnership Firm:
Choose a Name: Select a unique and appropriate name for the partnership firm. Make sure it doesn’t violate any already-registered trademarks.
Create a Partnership Deed: Create a partnership deed that outlines the terms and conditions of the partnership.
Documents Required for Partnership Firm Registration
A partnership firm is a type of business structure that is commonly used in India to facilitate cooperation between two or more people who share responsibilities. To guarantee a smooth and legal operation, the necessary paperwork and legal processes must be completed. For the registration of a partnership firm, the following documents are necessary.
- Partnership Deed (duly stamped)
- Identity Proof of Partners
- Passport-sized Photographs
- Partners’ PAN cards and address proof
- Registration Certificate (if applicable)
- Bank account details
- Specimen Signature
- The firm’s PAN card and address proof
- GST Registration (if applicable)
- Power of Attorney
- NOC from the Property Owner
- Affidavit
How to Register a Partnership Firm Online
Step 1: Fill out an application for a Register Partnership Firm.
To initiate the partnership firm registration process in India, the application form, along with the necessary fees, must be submitted to the Registrar of Firms in the state where the company is situated.
Step 2: Selecting the Partnership Firm’s Name
You can call a partnership firm registration by any name. Make sure they follow the guidelines, though, such as not using the same name again and avoiding anything about the government, among others.
Step 3: Registration Certificate
To initiate the partnership firm registration process in India, the application form, along with the necessary fees, must be submitted to the Registrar of Firms in the state where the company is situated.
How to Check Partnership Firm Registration Status?
- Step 1: Go to the website of the Ministry of Corporate Affairs (MCA).
- Step 2: Click on the ‘MCA Services‘ tab and select ‘View Company or LLP Master Data’ from the drop-down menu.
- Step 3: Enter the name or registration number of the partnership firm into the search box and press the “Search” button. The partnership firm’s details, including its address, date of registration, and registration number, will appear.
- Step 4: If the partnership firm is not registered, a notification reading ‘No matching records found‘ will be displayed
Alternatives to Partnership Firm:
Limited Liability Partnership (LLP): Offers limited liability protection and greater flexibility in terms of structure and profit-sharing. Requires more compliance requirements.
One Person Company (OPC): Ideal for single-owner businesses, providing limited liability protection. Cannot have multiple partners.