November 29, 2023 at 10:59 AM
It is quite simple to establish and form a partnership. There aren’t any intricate commercial formalities. In India, partnership firms must register in accordance with the Partnership Act, 1932. Additionally, it provides the documentation needed to register a partnership firm with the Registrar of Firms. The decision of whether or not to register a partnership firm rests with the partners; registration is not required. However, if a partnership firm is not registered, it won’t get legal benefits; for this reason, registration is usually advised. In this blog, we will discuss the vital documents required for Partnership Registration.
The Indian Partnership Act makes registration of a partnership firm optional rather than mandatory. It is entirely at the discretion of the partners and is entirely voluntary. The firm can be registered at the moment of its formation or incorporation, or at any time throughout the partnership’s operation.
However, it is usually better to register the partnership firm because a registered partnership firm has additional rights and benefits over unregistered firms. A partnership firm enjoys the following advantages:
To register a partnership firm, apply and necessary fees to the Registrar of Firms of the State where the firm is located. Signing the application is required from each partner or their representative. The firm will be registered in the Register of Firms and given a Certificate of Registration if the Registrar of the Firms certifies that the application was correct.
The following documents required for Partnership Registration (whether registered or not):
Although a partnership deed might be oral, it is usually recorded to minimize future conflict. The partnership deed is drawn up on judicial stamp paper received from the relevant State Registrar’s Office and must be signed by all partners. It outlines the firm’s and the partner’s rights and responsibilities.
PAN card of firm – Partners must apply for the firm PAN. A PAN application must be submitted using Form 49A. You should fill it out online by heading to the NSDL website.
If the authorized partner signs the application using a digital signature certificate, it can be submitted online. If not, the application and necessary paperwork must be forwarded to the closest PAN processing facility, which is located all across the nation.
Address Proof of firm – If the registered office is rented, a rent agreement and one utility bill (electricity bill, water bill, property tax bill, gas receipt, etc.) must be submitted. A letter of authorization from the landlord will also be submitted.
If the registered office location is owned, a utility bill naming the owner (partner) must be presented. A NOC from the owner is also required.
PAN card – Every partner in the company needs to own a PAN card. It serves as verification of the partners’ identities. If a partner does not currently have a PAN card, they can apply online on the NSDL website by submitting Form 49A.
They can apply offline by downloading the PAN application, filling it out, and sending it to the closest PAN processing center in their area, together with all the required documentation.
Address Proof – Any legally recognized proof of address that the firm’s partners have is required to be submitted. You can provide address verification with a voter ID, driver’s license, passport, Aadhar card, or utility bills that are no more than two months old.
The partners must submit to the Registrar of Firms the partnership deed, as well as ID and address credentials for the firm and the partners. It is also necessary to submit an affidavit stating that all of the details specified in the deed and documents are correct.
A firm must submit a PAN number, address proof, and identification and address evidence of the partners to receive a GST registration. The application will be signed by an authorized signatory using either a digital signature certificate or E-Aadhaar verification.
A company must provide the following documentation to open a current bank account:
The partnership firm registration process takes approximately 10 days, subject to departmental approval and reverts from the respective department.
Registering your partnership in India not only provides legal recognition, but also a variety of benefits such as ease of conducting business, access to credit, and a transparent operational structure. To establish your partnership, you must acquire all of the necessary documents and carefully complete the registration process. Consult a legal professional or a certified accountant to ensure that all processes are completed appropriately. Once your partnership is registered, you may concentrate on your company’s growth and operations with confidence.