Whenever an association of people joins together for a business purpose to share profits, a partnership firm registration is recommended. Partnership firms in India are governed by the Indian Partnership Act, 1932, and are required to register under this act. The purpose of this article is to provide a detailed overview of the registration process for Punjab partnership firms.
Laws relating to the registration of firms, 1932
Two or more persons who are qualified to contract for a business purpose may enter into a partnership firm agreement if they meet the following criteria:
- According to the regulations, every person who has reached the age of majority.
- Unsuspended from contracting under any law that prevents him from joining a partnership.
Partnership Firm Registration Benefits
Punjab partnership firms offer the following benefits:
Partnership firms are easier to register than LLPs (Limited Liability Partnerships), because they do not require DSC, DIN, and Name approvals. The Ministry of Corporate Affairs is responsible for LLP registration, whereas the State Government is responsible for partnership firm registration.
Partnership firms are not required to file annual reports with the Registrar, unlike Limited Liability Partnerships or corporations. Each year, Limited Liability Partnerships and organizations must submit their annual reports to the Registrar of Companies.
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In a Partnership Deed, the law for partnership members is outlined. There are several elements to a partnership deed, including:
- The name of the firm and the name of the partner.
- The address of the firm and the partner.
- The type of business that the partners of the firm will undertake.
- The date on which the business/firm was founded.
- Whether it is for a project or a fixed period of time.
- Partners’ profit sharing ratio.
- Contribution of each partner to the capital.
Every partnership deed should contain the elements represented above. Any additional clauses may also be covered by the partners if necessary. A partnership can also include the following provisions:
- Any interest owed on the partnership loan, the partnership capital, and any interest, if any, is to be charged.
- In a firm, partners in a partnership may be liable for commissions, salaries, etc.
- Arrangements for making accounts and audits.
- A division of responsibilities and tasks among the partners, i.e. their powers, duties, and responsibilities.
- Term and conditions to be followed in the event of a partner’s death, retirement, or admission to the partnership.
Requirements for documentation
When registering a partnership firm, the following documents must be submitted.
- Form No-1, application for registration of the firm.
- A copy of the partnership deed duly attested by a notary public with Rs.1000/- on non-judicial stamp paper.
- Each partner should have a passport-sized photo.
- A copy of the partner’s identification.
- Recipient of Rs.3/- registration fee, deposited into the treasury under the head of accounts.
Procedure for registering a partnership firm
The following steps will guide you through the process of applying for a registration certificate for a partnership firm in Punjab:
Contact the Registrar’s Office
The applicant must first approach the Punjab Registrar of Firms and Societies.
For your reference, you can also download the partnership firm registration application form in PDF format.
The details need to be completed
The second step is to complete the application form with the appropriate information, including the following:
- Name of applicant
- Name of firm
- A description of each partner.
Fill out the form and submit it
Step 3: By remitting the prescribed fee for registration, submit the completed application form to the same Registrar office for verification.
Pay the bill
Step 4: Documents will be verified by the concerned officer after payment has been received
Receive Acknowledgement number
Step 5: A receipt from the relevant authority will be sent to the applicant as an acknowledgment for future reference.
Collect the Certified Copy
Step 6: Using the acknowledgment receipt, the applicant will receive a certified copy of the registered partnership firm.
Time required for processing
Within fifteen working days of submitting the application, the certificate will be issued by the concerned authority.