The two most common types of Indian business entities are partnerships and proprietorships.
The most common types of Indian business entities are partnerships and proprietorships. There is no difficulty in establishing these two types of entities when compared to establishing a Limited Liability Partnership or LLPs and companies require more statutory compliance than these types of entities required by a LLP or required by a LLP and by a company. We examine in detail the procedure for registering a Sikkim partnership firm in this article.
Firms in partnership
Partnership firms are formed by two or more members working together under their own terms and conditions. When a partnership firm is registered, it can take advantage of various benefits. In India, however, partnership firms are not required to be registered.
Deed of Partnership
The partnership deed is required for the registration of a partnership firm. Partnership deeds record the agreements and responsibilities of each partner. Additionally, the documents include information about the partners, the business carried out by the partners, the location where the business is carried out, the duration of the business, capital contributions, profit and loss sharing, and remuneration due to the partners.
Below are some additional provisions that must be included in the partnership deed.
- Partners’ Capital, Partners’ Loan, and attention deducted from drawings are subject to interest.
- A firm’s partners should receive salaries, commissions, and other payments.
- Making arrangements for auditing and processing accounts.
- A list of all partners’ assignments, responsibilities, powers, and responsibilities.
- To add a new partner or demise of a partner, there are rules that must be followed.
Registration of partnership firms
The Partnership Act, 1932 governs every partnership firm in India. Two to twenty partners can form a partnership firm.
Establishing a partnership firm in Sikkim involves the following procedures.
Creating a partnership deed
The partnership deed must be drafted with mutual understanding between the partners.
Get the document printed
A minimum of Rs. 500 must be stamped on the deed.
Know more about: what is partnership deed
Mode of payment
GRAS allows stamp duty payments to be made online.
The process of obtaining a signature
Signed documents must be witnessed by all partners.
Procedure for registering a partnership firm
These steps must be followed in order to register a partnership form in Sikkim.
Fill out the form completely
A member of a partnership firm must complete Form 1.
Please attach the required documents
Application forms must be accompanied by all required documents.
The application must be signed by all the partners of the firm once all the required documents are attached.
In the Register of Firms log, the Register of Firms makes the necessary changes after viewing the application. Certificates of Registration are issued by the concerned authority after all procedures have been completed.