Partnership firm registration is recommended for any association of people who join together for a purpose business purpose to share their profits. In India, all partnership firms are regulated by the Indian Partnership Act, 1932, and as per this provision, a partnership firm must be registered. In this article, we look at the procedure for Punjab partnership firm registration in detail. If you require any assistance in registering a partnership firm in Punjab, get in touch with an IndiaFilings Advisor at email@example.com
Registration of Firms Laws, 1932
A partnership firm agreement is applicable between two or more persons who are qualified to contract for a business purpose, subject to the following:
- Every person in the age of majority according to the regulations.
- An individual not suspended from contracting by any law which makes him ineligible to join a partnership.
Advantages of Registering Partnership Firm
The benefits of registering a partnership firm in Punjab, are as follows:
Simple to start: Partnership firms can be registered easily compared to a LLP (Limited Liability Partnership), as it is not required to get DSC, DIN, and Name approval. LLP registration fall under the ambit of Central Government (Ministry of Corporate Affairs) while State Government laws are applicable for registration of partnership firm.
Annual fling not necessary: Partnership firms are not required to file its annual reports with the Registrar each year, unlike a Limited Liability Partnership or company. Limited Liability Partnership’s and organisations are required to submit their annual reports with Registrar of Companies each year.
Deed of Partnership
A Partnership Deed is an official document in which the law for the members of a partnership is included. A Partnership deed consists of elements that are mentioned below:
- Name of firm and partner.
- Address of firm and partner.
- Type of business to be taken out by the partners of the firm.
- Commencement date of the business/ firm.
- The term of the partners (whether for a project/ fixed period).
- Profit sharing ratio among the partners.
- Capital contribution from each partner.
The elements represented above are the essentials that are needed in every partnership deed. If required, the partners may also cover any additional clauses. Some of the other provisions which can be involved in the act of a partnership are listed here:
- Interest on Partner Loan, Partner Capital and Interest, if any has to be charged.
- Commissions, Salaries, etc., if any, liable for partners in a firm.
- The method of making accounts and audit arrangements.
- Division of responsibilities and tasks, i.e. the powers, duties, and commitments by all the partners in the firm.
- Terms and conditions to be followed in case of retirement, death and admission of a new partner.
The following documents are to be furnished while registering the partnership firm.
- Application form for registration of the firm, form No-1.
- Copy of partnership deed with Rs.1000/- on non-judicial stamp paper, duly attested by the notary public.
- Passport size photo of each partner.
- Partner’s identity proof.
- Receipt of registration fee of Rs.3/- which is deposited into the treasury under the head of accounts.