What is The Process of Partnership Firm Registration in India?
For Partnership Firm Registration in India, an application form is filed with the registrar of Firms of the state where the Firm is situated along with the prescribed fees. The Registration application form must be signed by all partners or their agents.Thereafter Partnership Deed is created on stamp paper and which should be signed by all the partners with notarization.
After verification of the prescribed documents, if the registrar is satisfied then he will register the Firm in Register of Firms and issue Certificate of Registration.Up to date information of all the Firms is contained under Register of Firms and on the payment of the certain fees it can be viewed by anybody.
How to Register the Name of The Partnership Firm in India?
There is no particular process of protecting the name of the Partnership Firm, however, for name protection, you can go with the Trademark Registration.
How Much Capital is Required for Partnership Firm Registration in India?
For Partnership Firm in India, there is no minimum capital requirement,unlike Private Limited Company. You just need capital to maintain a current bank account balance.
Is it Mandatory to Register a Partnership Firm?
It is not mandatory to apply for a Partnership Firm in India however it is always advised to get it registered with the Registrar of Firms as it gives the legal status to the Firm.
What are the Disadvantages of Unregistered Partnership Firm in India?
In case Partnership Firm is not registered then it cannot file a case against any partner or Firm/ any other third party. Without Registration, Partnership Firm is not eligible to avail the power to claim the set-off.
Describe the Partnership Firm Registration under MSME Act, 2006.
One can skip the Partnership Firm Registration and can apply under MSME. One can file an application for MSME Registration Certificate and current bank account can be opened.
Can a Foreigner Become a Partner in a Partnership Firm?
No, Partnership Firm can only be carried by the partners’ resident in India. For setting up a business entity with foreigner one can go with the Private Limited Company Registration.
What are The Basic Annual Compliances for The Partnership Firm in India?
Partnership Firm needs to file an income tax return on time. Besides this, personal income tax returns of all the partners in the Partnership Firm. Other than that, GST returns filing is mandatory.
Can Partnership Firm be Converted into a Private Limited Company?
Yes, one can convert Partnership Firm into a Private Limited Company by filing a prescribed form with the authority.
What Will be The Procedure of The Current Bank Account Opening in Partnership Firm?
To open a current bank account of a Partnership Firm in India, banks will ask for Partnership deed and KYC documents of partners such as ID and address proof as per RBI guidelines, PAN of the Partnership Firm will also be required by the banks.
How to Apply for The PAN of My Partnership Firm?
Once the Partnership deed is notarized, the Firm can apply for the PAN. We can also file PAN application on your behalf.
Can Investments be Made in Partnership Firm?
Yes, investments can be made in Partnership Firm,but there is no limited liability of partners unlike LLP or Private Limited Company. In Partnership Firm in India, an Indian resident person can make the investment.
Would it be Required to Visit any Government Department for My Partnership Firm Registration?
No, you would not be required to visit any department, all the process shall be done online. You would only be required to be physically present to notarize the Partnership deed.
What Will be The Step by Step Procedure for Registration of Partnership Firm in India?
- Selection of Partnership Firm Name
The first step is to select the name of the Partnership Firm and make sure that name is not infringing on the existing trademark. For this, you can verify it through the website of IP India online. After this, you would have to check the name availability of the Firm on the website of MCA (Ministry of Corporate Affairs) and it should be as per the guidelines prescribed by the government.
- Creation of Partnership Deed
The next step is to create a Partnership Deed which is an agreement among the partners consisting of terms & conditions. Partnership deed must be executed on stamp paper and it should be properly notarized.
It will contain the following information
- Partnership Firm Name
- Address of the Partnership Firm
- Nature/description of the Firm
- Profit sharing ratio of all the existing partners
- Details of all the partners
- Details of capital contribution
Besides this, there will be clauses related to admission, retirement or death of the partner.
- Partnership Firm Registration
The last step is concerned with the registration of Partnership Firm with the registrar of the Firm by filing an application in Form 1 along with the necessary documents such as an affidavit, Partnership deed and proof of principal place of business. After submission of an application it shall be verified by the registrar and after satisfaction, it will record the Partnership Firm in its database. There is no Partnership Firm Registration fees as such, but the partners will be required to notarize the Partnership deed on the stamp paper of sufficient value based on the amount of contribution.