Registering your business is the best way to stay in line with prevailing laws and ensure long-term success. After obtaining the registration, businesses gain momentum in terms of growth and become more visible in the given marketplace. Registering a partnership firm in Tamil Nadu or any other part of the country can be done via a simple legal procedure.
A partnership Firm is the most valuable business model for those who intend to work in a legal framework without fulfilling tons of statuary requirements. Therefore, in this write-up, we will explain how to register a Tamil Nadu partnership firm.
What is a Partnership Firm?
A Partnership firm is a type of business structure wherein partners rejoice predetermined proposition of profit and loss incurred in a business. Such business form is a perfect legal structure for companies that operate on a smaller scale.
Registering a Partnership firm in Tamil Nadu enables the owner to improve the business reputation and avert irrelevant legal prerequisites. Such companies work under the canopy of the Partnership Act, 1932 & its amendments. In India, one can found such businesses in two major categories:-
- Registered Partnerships
- Unregistered Partnerships
For registering a partnership firm in Tamil Nadu, one has to draft a partnership deed enclosing the working partners’ rights and obligations. Keep in mind that this, not a compulsion from a legal standpoint- meaning it’s up to the partners whether to opt for partnership registration or not.
However, staying away from registration never let firms reap long-term benefits on account of revenue and growth. Also, staying unregistered makes the firm more vulnerable to stringent compliances that inherently prevent your business from ensuring seamless growth.
Read our article:How To Get A Partnership Firm Registered In India?
Documents Needed For Registering a Partnership Firm
- Partnership Deed
- Attested copy of Identification and Address proof of all partners.
- Rental agreement in case if the place of business is rented.
- Non-objection Certificate for own premises.
- Authorization letter furnished by partners to authorize a professional
- Form-1 (original copy) signed by the partners (after online registration)
- Payment slips of government fees.
Step By Step Procedure for Registration of a Partnership Firm in Tamil Nadu
Here is the step by step guide for registering a partnership firm in Tamil Nadu.:-
Step 1: Drafting a Partnership Deed
The partners of the proposed company must draft a partnership deed through mutual consent. The partner must print the deed on the stamp paper worth Rs 300. Partnership Deed acts as an essential document for the registration process. Feel free to talk to Corpbiz’s Associate to prepare an errorless partnership deed.
Step 2: Arrange the Relevant Documentations
After successful drafting of the deed, the given credentials as photocopies are required:
Step 3: Online Registration in Registrar of Firms (ROF) portal
Here’s the URL for registering for partnership firm in Tamil Nadu https://tnreginet.gov.in/portal/index.jsp?JSESSIONID=AY3On6J1yffUcbncHHfVHB+Y.portal6
Creating a login credential in the Firms site
The firm must register on the site and create the user’s credentials. After creating the login details, the user must log in to the website. Under the Apply Request option, select “Firm Registration,” and the application form will appear.
Filing up the Application form (Form-1) and submission
Fill up the application form and avoid adding information that falls beyond the scope of the partnership deed, or else your request for registration will be revoked. Besides, make sure to add the information of the independent witness such as name, DOB, profession, and PAN card.
Uploading the supporting Dossiers & signing the Form-1
A scanned copy of the entire dossiers cited is uploaded as a supporting document. Form-1 will be generated after the successful registration of the details. The said form needs to be manually approved and signed by the partners and witnesses.
Step 4: Payment of Fees
A fee worth Rs 200 is needed to be submitted after the submission of Form 1. The applicant should take the print of the acknowledgment slip after making the payment.
Step 5: Manual Submission of Dossiers with the Registrar office
After online submission & fee payment in the ROF portal, the final step in the registration process will be the submission of the document cited in the Documents required with the respected Registrar Office.
Step 6: Intimation from Authority Regarding Successful Registration of Firm
After successfully verifying the documents above, the ROF will share information via email regarding the firm’s status, which is registered along with the Firm registration number. The authority will issue the Certificate of Registration within two or three days. Time taken for registration is typically 7-10 days.
In light of the above process, it will be fair to assume that registering a partnership firm in Tamil Nadu is not a complicated task, provided the applicant aptly complies with the procedure above. Documentation plays a vital part in any registration process, so it’s advisable to remain as legit as possible while dealing with the same.
What are Possible Downsides for a Firm that Opts to Stay Unregistered?
- A firm which has not opted for registration dilutes their right to sue another party in case of a dispute. Such entities cannot approach like a registered firm when it comes to filing a suit against the defaulter.
- A firm that doesn’t hold a registration cannot file a suit against any outsider entity in any court. Such firms are not eligible to leverage legal proceedings in any court of jurisdiction within India.
- In the absence of a registration, the claim surpassing Rs 100 cannot be set off by an outsider entity; therefore, there is no relaxation in this context to the party. Such a right is accessible to the registered firm only.
It is clear from the section above that not considering a firm’s registration is a costly affair both in terms of growth and benefits. If you intend to garner stable growth for your business, then opting for registration could be the best bet for you.
A registered Partnership Firm is less likely to face stringent compliances when contrasted with unregistered businesses. Also, it enables businesses to reduce the probability of frequent financial auditing that is often accounted as one of the major constraints for organizational growth. Connect with the CorpBiz’s staff if you seek additional guidance on a registration process for a partnership firm in Tamil Nadu.
Read our article:A Step by Step Guide for Registering a Partnership Firm in Gujarat