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Grow your business through partnerships

Due to easy of incorporation, it remains a preferred choice for businessmen looking to save time and money. Bring in more credibility to your business venture.

Price Starts RS @ 2,999 /-

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Partnership Registration process

Step 1
Prepare documentation
Step 2
Fill the application form
Step 3
Submit the application form
Step 4
Wait for processing
Step 5
Process complete

Partnership Registration in India

What is a partnership firm Registration?

Partnership firm registration is the process to incorporate a partnership firm – a business with unlimited liability and comprised of partners jointly venturing towards a common goal. 

What is a partnership firm?

A partnership firm is a form of business entity where two or more partners come together to do business through mutually agreed upon terms. The agreements of these terms are specified in the partnership deed. Only after the partnership deed is accepted by the partnership registry, the partnership firm registration is complete.

Following are the features that you have to look forward to if you are applying for online registration of a partnership firm in India:

  1. There is a minimum of two partners
  2. The partners may or may not share the responsibilities of the business.
  3. Through the partnership, you can bring more capital into the business.
  4. Risk is shared in a partnership form
  5. Annual returns are not necessary to submit
  6. All the tasks that this business venture performs, all the profits that are shared among the partners and all the responsibilities of those partners have to be per the partnership deed registration.

Eligibility Criteria for Partnership Registration in India

Following is the eligibility criteria for register a partnership in India.

  • There is a minimum of two partners
  • The partners may or may not share the responsibilities of the business.
  • Risk is shared in a partnership form
  • All the partners should agree to the terms mentioned in the partnership deed.

Rights And Liabilities of Member Partners

As per the mutually agreed-upon Partnership agreement,

  • A member partner is not entitled to receive remuneration for participating in the conduct of the firm's business.
  • The member partners are entitled to share equally in the profits earned and contribute equally to the firm's losses, if any.
  • For a partner entitled to interest on the capital he subscribes, such interests are payable only out of profits.
  • Suppose a member partner makes any payment or advances for the business beyond the amount of capital he has agreed to subscribe to. In that case, he is entitled to the interest at the rate of 6% per annum.
  • The partnership firm can indemnify a partner in respect of payments made and liabilities incurred by him for the following reasons:
    1. To properly conduct the business, and
    2. To protect the firm from loss, as would be done by a person of ordinary prudence, in his case, under similar circumstances.
  • A member partner can also indemnify the firm for any loss caused by his willful neglect in the conduct of the firm's business.

Partnership Estate

  • As per the partnership agreement, the firm's property must include all property and rights and interest in property originally brought into the firm's stock. The property can be acquired, by purchase or otherwise, by or for the firm. The property can be acquired during the course of the firm's business, including the goodwill of the business.
  • Unless the contrary intention appears, property and rights and interest in property acquired with money belonging to the firm must be acquired for the firm.
  • Subject to the contract between the partners, the firm's property must be held and used by the partners exclusively for the business.

Profit-sharing arrangement among the Member Partners

As per the Partnerhsip arrangement,

  • If a partner derives any profits for himself from any transaction with the firm, he must account for the profit and pay it to the firm.
  • If a partner carries on any business of the same nature or competes with the firm, then he must account for and pay all profits to the firm.

Member partner as Firm's Agent

  • The Act of a partner in carrying on the firm's business binds the firm. The authority of a partner to bind the firm conferred is called his "implied authority."
  • The implied authority of a partner does not empower him to the following:
    1. Submit a dispute relating to the business of the firm to arbitration
    2. Open a banking account on behalf of the firm in his name
    3. Compromise or relinquish any claim or portion of a claim by the firm
    4. Withdraw a suit or proceeding filed on behalf of the firm
    5. Admit any liability in a suit or proceeding against the firm
    6. Acquire immovable property on behalf of the firm
    7. Transfer immovable property belonging to the firm
    8. Enter into partnership on behalf of the firm

Documents Required for Partnership Registration in India

Following are the documents required for partnership firm registration in India:

  • Application for partnership firm registration in the prescribed Form – I.
  • Duly filled Specimen of Affidavit.
  • Certified copy of the Partnership deed on appropriate non-judicial stamp paper.
  • Proof of ownership of the place of business or the rental/lease agreement thereof.
  • Affix court fee stamp & payment of prescribed partnership firm registration fee by demand draft.

Process for Partnership Registration in India

The partnership firm registration process varies from state to state. In some regions, you can get the partnership registration online. However, in most cases, the incorporation process is still offline. The reason behind this is the age of the Partnership registration act. It was established in 1932 and have not gone through any changes since then.

Thus, the process of partnership company registration that you must follow is:

  1. First, partners are appointed for the process.
  2. The first draft of the partnership deed is created.
  3. Changes are made to the draft as per the requirement of the partners
  4. Application is filed to the partnership registrar’s office you can submit the partnership deed registration online if your state allows it).
  5. The registrar assesses the partnership deed and the application.
  6. A partnership registration certificate is granted and the partnership deed is certified.

After procuring the partnership firm registration certificate, you can start your business operations right away. 

The process of partnership firm name registration is not an easy one. Therefore, the experts of Registrationwala help you in any way necessary. Through our partnership registration facilities, you can start your business as a partnership firm in no time.

Introduction of a Partner in a Firm

  • A person can be introduced as a partner into a firm with the consent of all the existing partners.
  • A person who is introduced as a partner into a firm does not become liable for any act of the firm done before he became a partner.

Retirement of an existing Partner

A partner can retire -

  1. With the consent of all the other partners
  2. In accordance with an express agreement by the partners
  3. By giving notice in writing to all the other partners of his intention to retire.

A retiring partner can be discharged from any liability to any third party for acts of the firm done before his retirement by an agreement made by him. Such agreement can be implied by a course of dealing between third party and the reconstituted firm after he had knowledge of the retirement.

Expulsion of a Partner

A partner can not be expelled from a firm by any majority of the partners, save in the exercise in good faith or powers conferred by contract between the partners.

Insolvency of a Partner

  • If a partner in a firm is adjudicated as an insolvent, he ceases to be a partner on the date on which the order of adjudication is made, whether or not the firm is dissolved.
  • Where a contract between the partners the firm is not dissolved by the adjudication of a partner as an insolvent, the estate of a partner is not liable for any act of the firm. Also, the firm is not liable for any act of the insolvent.

Our Assistance in Partnership Registration in India

We, at Registrationwala, provide end to end solutions for Partnership registration in India. Our services include:

  • Collection of basic information.
  • Drafting the partnership deed.
  • Reviewing the application and making changes if needed
  • Submitting the final deed and filing the partnership registration application.

Registrationwala.com is a leading legal consultancy firm providing comprehensive services relating to partnership registration. Our expert team will provide you full-fledged assistance required for the seamless registration of a Partnership firm.

Frequently Asked Questions - FAQs About Partnership Firm Registration

Q.1) What is a Partnership firm?

A partnership firm is a form of business entity where two or more partners come together to do business through mutually agreed-upon terms.

Q.2) What is partnership firm registration?

Partnership firm registration is the process to incorporate a partnership firm under the Partnership Registration Act, 1932. It is a business with unlimited liability and comprised of partners jointly venturing towards a common goal.

Q.3) What are the features of a partnership firm?

Following are the essential features of a partnership firm:

  1. There is a minimum of two partners
  2. The partners may or may not share the responsibilities of the business.
  3. Through the partnership, you can bring more capital into the business.
  4. Risk is shared in a partnership form
  5. Annual returns are not necessary to submit

Q.4) How to incorporate a partnership firm in India?

The partnership registration process entails the following steps:

  1. Drafting the partnership deed
  2. Getting the consent of all the partners
  3. Furnishing the remaining documents
  4. File the partnership firm registration application
  5. Wait while the state department assesses your application
  6. Get the partnership firm registration certificate

Q.5) What are the documents required for partnership firm registration?

Following are the documents required for partnership firm registration in India:

  1. Application for partnership firm registration in the prescribed Form – I.
  2. Duly filled Specimen of Affidavit.
  3. Certified copy of the Partnership deed on appropriate non-judicial stamp paper.
  4. Proof of ownership of the place of business or the rental/lease agreement thereof.
  5. Affix court fee stamp & payment of prescribed partnership firm registration fee by demand draft.

Q.6) What is the partnership deed?

The partnership deed is the principal document of a partnership firm. It contains the:

  1. Details of the partners
  2. Profit-sharing ratio
  3. responsibilities of the partners
  4. Method to handle disputes
  5. Share transfer policies
  6. Partnership duration.

Q.7) What is the validity of a partnership firm?

The partnership firm’s validity depends upon the partnership deed. If the partnership deed states the duration and the last date of the partnership, the validity of the firm will exist accordingly.

Q.8) Can you transfer shares in a partnership firm?

Yes, shares can be transferred in a partnership firm but it is subject to the terms of the partnership deed. However, conventional terms state that share transfer can only occur after receiving the consent of all the partners.

Q.9) How do partners in the partnership firm get paid?

Partners get paid by withdrawing funds from the earnings of the firm. 

Q.10) Are profits equally shared among the partners?

Profits are shared among the partners in a partnership firm as per the partnership deed. If it states in the deed that profit shall be shared equally among the partners, then that shall be the case.

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