Partnership Firm Registration

Partnership Firm Registration

• Step 1: Drafting a Deed of Partnership:

  A partnership deed should be the first document the partners have to draft when they decide to register their business. The drafted partnership deed should have adhered to the format clearly described in the Indian Partnership Act of 1932. Depending on the business and the agreements between the participants, the deed may be finalised. A deed outlines all of the various elements required to run a successful firm, including the salaries to be paid, the division of profit and loss, interest on capital, exit plan, etc.

• Step 2: Partnership Deed Execution

  After all the present partners in the form agree to draft the partnership deed it should be executed after paying a proper stamp duty. The state where the deed is registered determines the stamp duty. Additionally, the deed needs to be notarised immediately. Each partner must properly sign the deed. The partnership deed must include the witnesses' signatures.

• Step 3: Stamp Duty And Notary process

  Only after completing the stamp duty payments the partnership deed will be executed. All the stamp duty payments have to be completed adhering to the Stamp Act of the particular state where the business is initiated.Both franking and non-judicial stamp paper may be used for the execution of the deed. The primary distinction between franking and stamping is that the former denotes the legitimacy of the documents, the latter does not. It is implied by the franking that fees or taxes, like stamp duty, have been deposited. Payment for franking, which resembles a stamp paper, is done through the banks. Once the stamp fee has been paid, the partners' signatures, as well as those of the relevant witnesses will be collected.

• Step 4: Getting a PAN for the Partnership Company

  You can apply for a Permanent Account Number (PAN) before or after the partnership firm has been registered. The same functionality is available in both online and offline modes. When submitting an application to establish a partnership firm, most jurisdictions permit applicants to also apply for a PAN. Apart from this a scanned copy of the partnership deed has to be presented.

• Step 5: Partnership Firm Registration

  The partnership firm is registered in the jurisdiction of the Registrar of Firms (RoF). The application form requests details about the firm, including its name, the names of its partners and their contact information, its location, how long it has been in operation, etc.The partners must comply with any requests for the submission of documents and proofs made by the registrar

• Step 6: Establishing a Bank Account

  The partnership firm's primary objective is to conduct business activities. It follows that a bank account is necessary for the company in order to conduct its everyday functions. The current account will be registered in the company's name. All of the essential paperwork for the partnership will be delivered to the bank.

  According to the Indian partnership Act of 1932, the business may register itself at any moment after formation. On the other hand, a registration application cannot be made after a third party has sued the partnership business. Even if it's a partnership.