Partnership Firm Registration
Partnership Firm Registration is the process of legally registering a partnership firm under the Indian Partnership Act. A partnership is defined in this act as an association of two or more people who have agreed to split profits from a business carried on by all or any of them acting for all. The registration process involves obtaining a unique Partnership registration Number (PFRN) from the Registrar of Firms. The PFRN serves as proof of the existence of the partnership and is required for opening bank accounts, obtaining loans, and filing tax returns. It is important to note that registration is not mandatory, but it is highly recommended as it provides legal recognition and protection to the partners in case of disputes or legal issues. Once registered, the partnership firm can operate with ease and confidence, knowing that it has legal recognition and protection under Indian law.
The partners must register their firm with the Registrar of Firms in the state in which it is located.
The partnership deed, ID and address proofs for the firm and the partners, as well as an affidavit, must be submitted to the Registrar of Firms.
To register a partnership firm, an application form and fees must be submitted to the Registrar of Firms of the state in which the firm is located.
The application has to be signed by all partners or their agents.
The registration of a partnership firm provides legal recognition to the firm and helps in resolving disputes between partners.
The registration process may take up to approximately 10 working days.
Finally, the partnership firm registration certificate can be downloaded
- Partnership deed
- ID and address proofs of the firm as well as the partners
- PAN card
- Office Address Proof
- Active partner: A partner who actively participates in the management of the business.
- Sleeping partner: A partner who only contributes capital to the business and does not take part in its management.
- Minor partner: A partner who is below the age of 18 years and cannot enter into a contract.
- Nominal partner: A partner in name only and does not contribute capital or take part in the management of the business.
- Limited partner: A partner whose liability is limited to the extent of his/her investment in the business.
- Partner by holding out: A person who knowingly permits himself to be a partner of the firm by his activities.
- Sub-partner: A partner who has no direct contact with the firm and is only next to a partner.
- Partner in profit: A partner who becomes a partner only in the profits of the business and not in the losses.
Frequently Asked Question
Business filing is the best option for those who are looking partnership firm in Chennai. It provides a hassle-free and efficient process for registering your partnership. Additionally, Business filing offers expert guidance and support throughout the registration process.
To be eligible for a partnership, you must have at least two partners who are Indian citizens and have a valid PAN card. The partnership agreement must also be drafted and signed by all partners.
To online registration of partnership firm, you need to visit the website of the Ministry of Corporate Affairs and fill out the required forms. You will also need to pay the registration fee and provide all necessary documents, such as proof of address and identity for all partners.
The cost of a partnership deed in India varies depending on the state and the complexity of the agreement. It is recommended to consult with a legal professional to ensure that all aspects of the partnership are properly documented and legally binding.
The minimum capital requirement for a partnership firm in India is not specified. However, partners are required to contribute an agreed-upon amount towards the capital of the firm.