Partnership Firm Registration: To register a partnership firm in India, you must submit an application form and the required fees to the Registrar of Firms in the state where the firm is located. The application should be signed by all partners or their authorized representatives. Once the Registrar of Firms verifies the application’s accuracy, the firm is registered, and a Certificate of Registration is issued.
Documents Required for Partnership Registration: Key documents required for partnership formation, whether registered or not, include:
Partnership Deed: While a partnership deed can be oral, it is advisable to have a written partnership deed. This deed is typically executed on a judicial stamp paper, which you can obtain from the State Registrar’s Office. It should be signed by all partners and outlines the rights and responsibilities of the firm and its partners.
Documents required for Partnership registration:
- Address proof of firm
- Address proof of partners
- Authority Letter to approve any person to apply for registration
- Notarised Partnership Deed
- Notarised photos of Partners
- PAN card of the Firm
- PAN card of Partners
- Profession Tax Payment Receipts
GST Registration
For obtaining a GST registration , a firm needs to submit PAN number, address proof and identity and address proofs of the partners. Authorised signatory will sign the application either using a digital signature certificate or E-Aadhaar verification.
Current Bank Account
For opening a current bank account, a firm needs to submit the following documents:
- Partnership deed
- Partnership firm PAN card
- Address proof of the partnership firm
- Identity proofs of all the partners
- Partnership registration certificate (if partnership has been registered)
- Any registration document issued by central or state government (normally GST certificate is submitted)
- Copy of electricity bill, telephone bill or water bill (not more than 3 months old)
- Authorisation letter on the letterhead of the firm authorising a partner as authorised signatory for the bank account.
No, it is not a mandatory requirement to register a partnership firm under the provisions of the Partnership Act, 1932. However, it is strongly recommended to register a partnership firm. Without registration, a partnership firm is unable to access the legal benefits offered by the Partnership Act, 1932.
For registered partnership firms or their partners, the ability to file a case against a third party for a contract breach is a significant advantage. In contrast, an unregistered partnership firm cannot initiate legal action against a third party, who may, in turn, file a case against the firm. Furthermore, in case of a dispute with a third party, unregistered firms or their partners cannot claim a set-off.
Registering a partnership firm in India typically takes around 10 working days. However, the time needed to issue the Certificate of Registration may vary depending on the specific regulations of the state in question. The registration process is subject to government processing times, which differ across states.
To some extent, a partnership firm's certificate of incorporation can be revoked during the dissolution process. Dissolution can occur automatically if all partners or all partners except one are declared insolvent, or if the firm engages in unlawful activities.
Partners in a partnership firm have the option to register the firm at its formation or at any subsequent stage. Nonetheless, it is advisable to pursue registration as soon as the firm commences its business operations to enjoy the exclusive rights available to registered firms.
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