To do a Partnership Firm Registration, partners must execute a partnership deed, which is also to be known as a partnership agreement. Because a partnership firm is registered with the local Registrar of Firms (RoF), the registration procedure may vary from state to state as contemplated by Sanket Agarwal who is a renowned and experienced Chartered Accountant having establishment in India, Dubai, Hong Kong etc and he has assisted over 10,000 enterprises with various consulting services for tax planning and business setup. To incorporate a Partnership Firm Online, a minimum of two people are required. There is no requirement for a minimum amount of capital in order to Register Partnership Firm Online.
The procedure of Partnership Firm Registration:
Drafting of Partnership Deed:
A Partnership Deed should be drafted as in accordance with terms of the Indian Partnership Act of 1932. Any clauses necessary for the proposed registration of Partnership Firm Online or Offline would be forming part of Partnership Deed.
Execution of Partnership Deed:
After that, the deed must be properly executed on stamp duty in the executed in the state or brought for acting upon the same in the respective state and to be notarized upon it. All of the firm’s partners must sign the Partnership Deed at the stated location, with their initials on all pages. The signatures of the Partners’ witnesses, as well as their residential addresses, must also be provided.
Payment of Stamp Duty and Notarization:
The Partnership Deed will be executed when stamp duty has been paid in accordance with the State Stamp Act in the jurisdiction where the Partnership Firm’s business is intended to be located. The Deed can be signed on non-judicial stamp paper or through franking. Followed by the payment of stamp duty, the deed must be notarized once the signatures of the partners and witnesses are provided.
Application for PAN:
The application for a PAN Number can be submitted either before or after the partnership firm is registered. A copy of the Partnership Deed must be enclosed by the PAN Allotment application.
Registration of Partnership Deed:
The Registrar of Firms (RoF) under whose jurisdiction the place of business is located responsible for registering partnership firms. The name of the firm, the names of the Partners and their addresses, the place of business, the duration of time of business, and other information must be included in the application for partnership firm registration. Depending on the procedure for the time being in the specified State, the registrar may also request the provision of papers.
Opening of Bank Account:
For registering a partnership firm, a bank account should be in the name of the Partnership Firm.
Benefits of Partnership Firm Registration:
There are several benefits to Register Partnership Firm Online:
- A partner has the authority to launch a lawsuit in court against the firm or other co-partners.
- Firms have the authority to file cases in court against third parties.
- The ability to make a set-off claim.
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Q- Should a partnership firm liable to be registered?
Since a partnership firm cannot obtain legal benefits until it is registered, it is always advisable to do so.
Q- Is it required to have a partnership deed in order to begin a partnership firm?
Yes, the Partnership deed is compulsory for registering a partnership firm. The nature of the firm, the partners’ rights and obligations and the ratio in which they will be divided are all defined in this agreement.
Q- Can a partnership firm be formed for a precise business undertaking?
Yes, A person may become a partner with another be constituted for a particular business undertaking.
Q- Does the number of partners in a partnership firm have a limit?
Yes, In Rule 10 of the Companies (Miscellaneous) Rules, 2014, the Central Government set the highest number of partners in a firm subject to maximum of 100. In a nutshell, a partnership firm with more than 100 members cannot exist.”
Q- Can a partnership firm be sued in its own name?
A person may sue to partnership firm, but the plaintiff must include the names of all of the firm’s partners. Furthermore, under the Income Tax Act, a firm can be taxed separately from its partners. As a result, a partnership firm has a quasi-independent status.