Registration of
Partnership Firm
To start a Partnership firm, partners need to enter into an agreement which is popularly known as Partnership Deed. Different states impose different stamp duty on the partnership agreements/deeds, it means while creating a partnership instrument (Deed) the partners must purchase stamp paper of appropriate value as may be applicable in the respective state, to be annexed with the agreement. An agreement can further be notarized. Though registration of partnership Firm is not mandatory under The Partnership Act, 1932, however, section 69 of the act specifies the effect of Non-Registration, according to that an unregistered firm shall not be able to recover any sum more than Rs. 100. Hence, it is strongly recommended to register the partnership firm with the registrar of firms ( ROF)
One Person Company
Registration Process
Step 1:
Selection of Name
The name of the partnership firm should be cross-checked with the trademark registry to avoid any infringement of someone else Trademark or brand name.
Step 2:
Deed Drafting
Deed of Partnership is the constitution of the firm which determines the relationship of partners among themselves as well as the relation of partners with the firm.
Step 3:
Deed Notary
The Partnership Deed must be well drafted, and the signature of the partners be made on the agreement in the presence of witnesses before a Notary.
Step 4:
Firm Registration
The signed partnership agreement along with the KYC of partners and premises proof is filed with the concerned Registrar of Firms, for its registration.
Eligibility
Minimum Requirement
Minimum Two Person
Two person is needed to become partners of the firm. However, maximum 20 partners are allowed in a firm (10 in banking business)
No FDI is Allowed
Foreign investment in a partnership firm is not permitted. In the firm, only Indian citizen can become the partner and start the partnership firm.
No Minimum Capital
No minimum capital is prescribed, it must be based on the business requirements. The Stamp Duty on the deed is based on the capital of the firm.
Unique Name
Name of the firm should be unique, and it must not same or similar to the name of any existing trademark which is registered or applied.
Documents Required for Company Registration
- Two Photograph of Each Partner
- PAN Card Copy of Partners
- Identity Proof (Voter ID / Driving License/ Passport)
- Address Proof (Bank Statement / Electricity, Mobile, Telephone Bill)
- Proof of Registered Office
- Utility Bill as proof must be Latest
- NOC from the owner of the premises