{"id":25540,"date":"2021-02-05T14:50:45","date_gmt":"2021-02-05T09:20:45","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=25540"},"modified":"2021-02-05T14:50:48","modified_gmt":"2021-02-05T09:20:48","slug":"description-on-registration-of-partnership-firm-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/description-on-registration-of-partnership-firm-in-india\/","title":{"rendered":"Description on Registration of Partnership Firm in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The partnership firm is one of the\nimperative business forms in the Indian Business market, regulated by the <strong><em>Indian\nPartnership Act, 1932<\/em><\/strong>. Registration of Partnership Firm is not\nnecessarily done before starting a business by forming a partnership but it can\nbe completed anytime during the continuance of a company by agreeing on a <strong><em>Partnership\nDeed<\/em><\/strong>.<\/p>\n\n\n\n<p>As mentioned under the provisions of the <em><strong>Indian Partnership Act of 1932<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/The_Indian_Partnership_Act,_1932\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> Registration of Partnership Firm is not compulsory but to take benefits from government schemes and to avoid disagreements and conflicts between the partners, the partnership firm must be registered.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/description-on-registration-of-partnership-firm-in-india\/#Summary_of_Registration_of_Partnership_Firm\" >Summary of Registration of Partnership Firm<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/description-on-registration-of-partnership-firm-in-india\/#Advantages_of_Opting_Registration_of_Partnership_Firm_in_India\" >Advantages of Opting Registration of Partnership Firm in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/description-on-registration-of-partnership-firm-in-india\/#Documents_Required_for_Partnership_Deed\" >Documents Required for Partnership Deed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/description-on-registration-of-partnership-firm-in-india\/#Documents_Required_of_Registration_of_Partnership_Firm_in_India\" >Documents Required of Registration\nof Partnership Firm in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/description-on-registration-of-partnership-firm-in-india\/#Procedure_for_Registration_of_Partnership_Firm_in_India\" >Procedure for Registration of Partnership Firm in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/description-on-registration-of-partnership-firm-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Summary_of_Registration_of_Partnership_Firm\"><\/span>Summary of Registration of Partnership Firm<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An alliance of two or more people that come\nto a conclusion to do business collectively with the purpose of earning profit\nis considered as a partnership. Members of such alliance are recognized as\npartners. The firm is owned, managed and controlled by the partners. Partners\nof the partnership firm share profit and loss as decided in the partnership\ndeed or according to their respective shares in the ownership. <\/p>\n\n\n\n<p>One of the advantages of a partnership firm\nis that it can be commenced with a massive capital as each partner of the firm\ncan contribute as per their expediency, and the burden of raising capital for\nthe partnership firm will be shared. The decisions making process in a\npartnership firm is a mutual and collective; approval of every partner is\nrequired in a partnership firm before making any decision.<\/p>\n\n\n\n<p>Partnership firms are of two type; those are non-registered firms and registered firms. It is not binding to obtain <a href=\"https:\/\/corpbiz.io\/partnership-firm-registration\"><strong>Partnership firm registration<\/strong><\/a>, as mentioned under the provisions of the Indian Partnership Act, 1932 but it is very much prudent to get registration for a Partnership firm, as Registration of Partnership Firm provides wide range of advantages and offers security to the business.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/partnership-firm-registration-and-annual-compliances\/\">Partnership Firm Registration and Annual Compliances<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_Opting_Registration_of_Partnership_Firm_in_India\"><\/span>Advantages of Opting Registration of Partnership Firm in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The Advantages of Registration of Partnership Firm in India are as follows-<\/strong><\/em><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/Advantages-of-Opting-Registration-of-Partnership-Firm-in-India.png\" alt=\"Advantages of Opting Registration of Partnership Firm in India\" class=\"wp-image-25568\" width=\"458\" height=\"575\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/Advantages-of-Opting-Registration-of-Partnership-Firm-in-India.png 795w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/Advantages-of-Opting-Registration-of-Partnership-Firm-in-India-239x300.png 239w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/Advantages-of-Opting-Registration-of-Partnership-Firm-in-India-768x966.png 768w\" sizes=\"(max-width: 458px) 100vw, 458px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Easy Business Structure<\/h3>\n\n\n\n<p>The structure of a partnership firm is the\neasiest business form when compared to another business structures as a\npartnership firm can be formed by a partnership deed. A partnership deed is the\nmost vital document for registering partnership firm.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Easy Decision Making<\/h3>\n\n\n\n<p>In a partnership firm the process of\ndecision making is straightforward and quicker as the partners are not required\nto follow any set of laws for passing a resolution for every decision made by\nthem. The partners of a partnership firm mutually make decisions.<\/p>\n\n\n\n<p>If it is necessary for the partnership\nfirm, a partner can also perform a business transaction on behalf of the partnership\nfirm without considering it to other partners.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ease in Raising Funds<\/h3>\n\n\n\n<p>In comparison with other business\nstructures such as a proprietorship, a partnership firm can easily raise funds.\nAs each partner of the firm can contribute as per their expediency, the burden\nof raising capital for the partnership firm will be shared Banks &amp; other\nfinancial institutions are more likely to give loans to partnership firms than\nother business structures.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Easy Management<\/h3>\n\n\n\n<p>In a partnership firm, duties and responsibilities are assigned as per the competency of the partners or as stated in the partnership deed. In a partnership deed partners mutually decide the clauses they have to follow. This helps in avoiding conflicts maintains transparency between the partners.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_for_Partnership_Deed\"><\/span>Documents Required for Partnership Deed<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are several documents required for Registration\nof Partnership Firm but the most important document is Partnership Deed.<\/p>\n\n\n\n<p>A Partnership Deed is a document drafted by\nthe partners in which the conditions and provisions for the partners are\nincluded. The Partnership Deed includes following components as mentioned\nbelow:-<\/p>\n\n\n\n<ul><li>Both Partners and Firm name as well as address;<\/li><li>Nature of Business of the partnership firm;<\/li><li>Commencing date of partnership firm;<\/li><li>The duration of Partners (fixed period\/ whether for a project);<\/li><li>Ratio of Profit &amp; &nbsp;Loss sharing among the partners;<\/li><li>Capital contributed by each partner.<\/li><\/ul>\n\n\n\n<p>The above specified components are\nfundamentals that are required in all partnership deeds. If needed, the\npartners can also cover any other clauses. Some of the further provisions which\ncan be added in the Partnership Deed are listed below:-<\/p>\n\n\n\n<ul><li>Interest on Partner\u2019s Capital, Partners\u2019 Loan, other Interest (if any);<\/li><li>Salaries, Commissions, etc. chargeable for partners in the partnership.<\/li><li>The procedure of audit arrangement and making accounts;<\/li><li>Distribution of task and responsibility, i.e. the duties, commitments, and powers by all the partners in the partnership firm;<\/li><li>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.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_of_Registration_of_Partnership_Firm_in_India\"><\/span>Documents Required of Registration\nof Partnership Firm in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>For Registration of Partnership Firm, the applicant has to submit the following documents along with the registration application form:-<\/strong><\/em><\/p>\n\n\n\n<ul><li>Form No.1 duly filled and affixed INR 3 court fee stamp;<\/li><li>A photocopy of Partnership deed on the minimum stamp paper or Rupees 200;<\/li><li>Registered document of the property;<\/li><li>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;<\/li><li>NOC or Affidavit on INR 10 and INR 5 Notary stamp;<\/li><li>Rent agreement (if the premise is rented);<\/li><li>Address proof of all the partners such as Driving Licence, Voter card or Passport;<\/li><li>Affidavit or NOC on INR 10 and INR 5 Notary stamp and ownership proof of other places (if mentioned in Form no.1).<\/li><\/ul>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> For the above mentioned documents an attestation from the C.A. or Advocate Notary with the Registration number is required.<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_Registration_of_Partnership_Firm_in_India\"><\/span>Procedure for Registration of Partnership Firm in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>In order to apply for Registration of Partnership Firm, an applicant has to follow the steps given below-<\/strong><\/em><\/p>\n\n\n\n<ul><li>Name Selection;<\/li><li>Filing Application;<\/li><li>Preparation of Partnership Deed;<\/li><li>Document Submission;<\/li><li>Issuance of Registration Certificate.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Registration of Partnership Firm is not\nnecessarily done before starting a business by forming a partnership but it can\nbe done anytime during the continuance of a company it just requires a\npartnership deed. <\/p>\n\n\n\n<p>Partners of the partnership firm share profit and loss as decided in the partnership deed or according to their respective shares in the ownership. For hassle free partnership firm registration, contact our <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> Professional.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/partnership-firm-registration-procedure-and-regulations\/\">Partnership Firm Registration: Definition, Regulations, and Registration Procedure<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The partnership firm is one of the imperative business forms in the Indian Business market, regulated by the Indian Partnership Act, 1932. Registration of Partnership Firm is not necessarily done before starting a business by forming a partnership but it can be completed anytime during the continuance of a company by agreeing on a Partnership [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":25567,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[158],"tags":[1507],"acf":{"service_id":"5"},"authorName":"Sakshi Srivastava","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG-20180130-WA0007.jpg","authorDescription":"Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.","postViews":5657,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25540"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=25540"}],"version-history":[{"count":12,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25540\/revisions"}],"predecessor-version":[{"id":25574,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25540\/revisions\/25574"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/25567"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=25540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=25540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=25540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}