Documents required for Partnership Registration in India

The partnership firm is one of the imperative business forms in. Partnership firms in India are regulated by the Indian Partnership Act, 1932. Partnership registration in India is not necessarily done before starting a business by forming a partnership but it can be done anytime during the continuance of a company it just requires a partnership deed. As mentioned under the provisions of the Indian Partnership Act of 1932 partnership firm registration is not compulsory but to take benefits from government schemes and to avoid disagreements and conflicts between the partners' partnership firm must be registered.

Overview of Partnership Registration in India

An alliance of two or more people that come to a conclusion to do business collectively with the purpose of earning profit is considered as a partnership. Members of such alliance are recognized as partners. The firm is owned, managed and controlled by the partners. Partners of the partnership firm share profit and loss as decided in the partnership deed or according to their respective shares in the ownership. One of the advantages of a partnership firm is that it can be commenced with a massive capital as each partner of the firm can contribute as per their expediency, and the burden of raising capital for the partnership firm will be shared. The decisions making process in a partnership firm is a mutual and collective; approval of every partner is required in a partnership firm before making any decision.

Advantages of Partnership Registration in India

• Easy Business Structure

The structure of a partnership firm is the easiest business form when compared to another business structures as a partnership firm can be formed by a partnership deed.

• Easy Decision Making

The partners of a partnership firm mutually make decisions. If it is necessary for the partnership firm, a partner can also perform a business transaction on behalf of the partnership firm without considering it to other partners.

• Ease in Raising Funds

In comparison with other business structures such as a proprietorship, a partnership firm can easily raise funds. As each partner of the firm can contribute as per their expediency, and the burden of raising capital for the partnership firm will be shared.

• Easy Management

In a partnership firm duties and responsibilities are assigned as per the competency of the partners 0r as stated in the partnership deed. This helps in avoiding conflicts maintains transparency between the partners.

Documents Necessary for Partnership Registration in India

There are several documents required for partnership registration in India but the most important document is Partnership Deed.

A partnership deed consists of the following components as mentioned below:

• Both Partners and Firm name as well as address.
• Nature of Business of the partnership firm.
• Commencing date of partnership firm.
• The duration of Partners (fixed period/ whether for a project).
• Profit and Loss sharing ratio among the partners.
• Capital contributed by each partner.

The above specified components are fundamentals that are required in all partnership deeds. If needed, the partners can also cover any other clauses. Some of the further provisions which can be added in the partnership deed are listed below:

• Interest on Partner’s Capital, Partners’ Loan, Interest (If any).
• Salaries, Commissions, etc. chargeable for partners in the partnership.
• The procedure of audit arrangement and making accounts.
• Distribution of task and responsibility, i.e. the duties, commitments, and powers by all the partners in the partnership firm.
• Set of laws and policy in case of admission of a new partner, retirement of a partner, and in case of death of a partner.

Documents Required

For partnership registration in India, the applicant has to submit the following documents along with the registration application form.

• Form No.1 duly filled and affixed INR 3 court fee stamp.
• A photocopy of Partnership deed on minimum stamp paper of Rs.200.
• Registered document of the property
• Ownership Proof of Principal Place such as House tax receipt or Electricity bill that must be in the name of the owner of the property.
• NOC /Affidavit on INR 10 and INR 5 Notary stamp.
• Rent agreement (If the premise is rented).
• Address proof of all the partners such as Driving Licence, Voter card or Passport.
• Affidavit/NOC on INR 10 and INR 5 Notary stamp and ownership proof of other places (if mentioned in Form no.1).

Conclusion

Partnership Registration in India is not necessarily done before starting a business by forming a partnership but it can be done anytime during the continuance of a company it just requires a partnership deed. For the above-mentioned documents attestation from the C.A. or Advocate Notary with the Registration number is required.