Partnership Registration

A Partnership Firm is a traditional form of business structure for businesses that are owned, managed and controlled by an Association of People for profit. Partnership Firms are relatively easy to start and are is prevalent amongst small and medium sized businesses. Partnership Firms are created by drafting and executing a Partnership Deed amongst the Partners and registering the same with the Registrar of Firms.

Partnership firm with the Registrar of Firms, however; it is advisable to register a Partnership Firm due to the added advantages given to registered partnership Firms. Partnership Firms are created by drafting and executing a Partnership Deed amongst the Partners and registering the same with the Registrar of Firms. However, after introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnerships.

PARTNERSHIP FIRM REGISTRATION

 

 

BASIC CONCEPT

A Partnership Firm is a traditional form of business structure for businesses that are owned, managed and controlled by an Association of People for profit. Partnership Firms are relatively easy to start and are is prevalent amongst small and medium sized businesses.

 

There are two types of Partnership Firms, registered and un-registered Partnership firm. The Registrar of Firms (RoF) has right to register partnership firm. In India it is mandatory in some states to register a Partnership firm with the Registrar of Firms, however; it is advisable to register a Partnership Firm due to the added advantages given to registered partnership Firms. Partnership Firms are created by drafting and executing a Partnership Deed amongst the Partners and registering the same with the Registrar of Firms. However, after introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnerships.

 

 

Who can register a partnership firm ?

 

 

  1. An Individual:

 

  • Who has completed the age of majority i.e. 18 years
  • Is be of sound mind
  • Is not be disqualified from contracting in any way by the law
  • A minor can also become a partner subject to the condition that all the partners should give their consent. The minor won’t be able to participate in the workings, however, he will be entitled to the benefits of a partnership. He is personally not liable for any act. He cannot sue other partners.

 

  1. A firm (which is recognized as a separate legal entity by law)
  2. A company
  3. A Trustee
  4. The main member or Karta of a Hindu Undivided Family (HUF)

 

 

 

What are the types of Partnership Firm ?

 

 

 

  1. A partnership can Oral Partnership (not registered)
  2. A partnership through written agreement and registered with Registrar of Firms (RoF)

 

 

Advantages of Partnership Firm Registration

 

 

1. Separate Entity (partnership & ownership is separate):

 

Partnership Firm is a separate legal entity and a juristic person established under the Partnership Act, 1932. Hence, a Partnership Firm has a wide range of legal capacities.

 

2. Perpetual succession:

 

Just like a Private Limited Company, a Partnership Firm also has feature of 'perpetual succession', which means uninterrupted existence until it is legally dissolved under the Partnership Act, 1932. A partnership firm being a separate legal entity, is unaffected by death or other departure or cessation of any partner and it continues to be in existence irrespective of changes in partnership.

 

3. Advantage of expertise and knowledge:

 

In Partnership Firm, a partners may belong from various fields and they being expert in their respective field, serve on the partnership firm by providing their expert knowledge and practical experience which is definitely in the best interest of the Firm and the business and also to the individual partners sometimes.

 

 

4. Owning Property in Partnership Firm’s name:

 

Partnership Firm being an separate legal entity, can acquire, own, and alienate, property in its own name. The property owned by a partnership firm could be machinery, building, intangible assets, land, residential property, factory, etc., No partner can make a claim upon the property of the Firm - as long as the partnership is a going concern.

 

5. No stringent compliances like ROC annual filings:

 

A Partnership Firm is not required to comply with the stringent requirements of the Annual Filings just like a Pvt. Ltd. Companies except that of the Income Tax return filing. Hence, there are no chance of non-compliance and hefty penalties.

 

6. Small business can take benefit of MSME status:

 

A Partnership Firm starts from very micro level. At this point profitability and security of its own trade interests is very difficult to manage. Hence, this Partnership Firms can take Undyog Aadhaar for being considered itself as a Small Scale Industrial unit and at least get concession on statutory Govt. Fees and other benefits such as exemptions under Income Tax Act, 1961 and also can take Govt. grants and subsidies.

 

7. Start up registration for Income Tax benefits:

 

If your business is uniquely identified and has potential for generating the large scale employment opportunities, then you can register your Partnership Firm under Govt.’s Start-Up India Scheme and take huge Income Tax Benefits for at least 5 years.


The entire process for registration of Company will take at least 5 to 10 working days from the receipt of all the necessary documents and filing with the ROC.

 

 

 

Is there any benefits available to a Partnership Firms under Start-Up India ?

 

 

Small Companies, Private limited and One Persons Companies are three types of Companies which forms large part of the total companies in India. All these small scale business units / Companies are the actually the growth indicators of the Country’s Economy such as Concepts like Start Up India, Make in India, Digital India, etc… which are the most successful recent govt. initiated programmes to strengthen the growth potential of the Indian businesses at micro level.

 

One of the Programme is Start Up India which gives the following enlisted benefits as per the scheme:

 

1. Self-Certification: Self-certify and comply under 3 Environmental & 6 Labour Laws.

 

2. Tax Exemption: Income Tax exemption for a period of 3 consecutive years and exemption on capital and investments above Fair Market Value.

 

3. Easy Winding of Company: In 90 days under Insolvency & Bankruptcy Code, 2016.

 

4. Startup Patent Application & IPR Protection: Fast track patent application with up to 80% rebate in filling patents.

 

5. Easier Public Procurement Norms: Exemption from requirement of earnest money deposit, prior turnover and experience requirements in government tenders.

 

6. SIDBI Fund of Funds: Funds for investment into startups through Alternate Investment Funds.

 

To take above mentioned benefits it very much necessary to get your Company or LLP or Partnership or Proprietary Firm register under this Start Up Scheme. Following is the Eligibility Criteria for Startup Recognition:

 

  1. The Startup should be incorporated as a Private Limited Company or registered as a Partnership Firm or a Limited Liability Partnership.

 

 

  1. Turnover should be less than INR 100 Crores in any of the previous financial years.

 

 

  1. An entity shall be considered as a startup up to 10 years from the date of its incorporation.

 

 

  1. The Startup should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth.

 

An entity formed by splitting up or reconstruction of an existing business shall not be considered a "Start-up".

Documents


Passport Photo

Passport Photo of all parties


PAN Card

PAN Card of all parties


Adhaar Card

Adhaar card of all parties


Landlord NOC

Format will be provided


Rent agreement

Copy of Rent agreement (If rented property)


Copy of Index II

Copy of Index II or Property Tax Receipt (If owned property)


Electricity or Gas bill

Bank Statement for Office of Company


Other Documents

Other documents will be intimated through e-mail.

FAQ

A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits.Section 4 of the Indian Partnership Act, 1932 defines the term partnership as-“Partnership is the relation between persons who have agreed to share the profit of business carried on by all or any one of them acting for all.”

1. Partnership deed 2. Partnership firm and Partners’ PAN card 3. Address Proof of the partnership firm and the partners 4. Identity proofs of all the partners 5. Affidavit 6. GST Certificate 7. Opening of Current A/c with a bank 8. Authorisation letter on the letterhead of the firm authorising a partner as authorised signatory for the bank account

As per the Partnership Act, a partner shall be a major i.e., above 18 years of age, must be sane and shall not be disqualified by any law from entering into a contract. Any firm with major partners can apply for the registration process.

The Registration of a partnership firm is not mandatory under Part vii of the Indian Partnership Act, 1932. It is optional for partners to set the firm registered and there are no penalties for non-registration.

Partnership Deed is a legal document that consists of an agreement between two individuals who want to do business and share profit and losses, together. Partnership Deed is also termed as Partnership Agreement wherein business gets registered as Partnership Firm.

Partnership termination refers to the ways through which business partnership is legally ended. Usually, a partnership terminates when the aim of the partnership has been achieved. In other cases, a partnership may terminate prematurely due to unexpected circumstances, such as the death of a partner or an illegal violation.

Registration of Partnership firm gives partners the ability to file a case against third parties, and other partners. In addition to that it also grants power to claim set-off against any third-party claim. It's faster and easier to convert into any other business structure if the partnership is registered.

An application form along with fees is to be submitted to Registrar of Firms of the State in which firm is situated. The application has to be signed by all partners or their agents.

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    }
 
    /**
     * Log a notice to the logs.
     *
     * @param  string  $message
     * @param  array  $context
     * @return void
Arguments
  1. "error"
    
  2. "file_put_contents(/home/naruto2020/public_html/storage/framework/sessions/DffLL5QcghHn7yBxfDud7nhbHrcmWg38IGEtpkjf): failed to open stream: Permission denied"
    
  3. array:1 [
      "exception" => ErrorException {
        #message: "file_put_contents(/home/naruto2020/public_html/storage/framework/sessions/DffLL5QcghHn7yBxfDud7nhbHrcmWg38IGEtpkjf): failed to open stream: Permission denied"
        #code: 0
        #file: "/home/naruto2020/public_html/vendor/laravel/framework/src/Illuminate/Filesystem/Filesystem.php"
        #line: 122
        #severity: E_WARNING
      }
    ]
    
/home/naruto2020/public_html/vendor/laravel/framework/src/Illuminate/Foundation/Exceptions/Handler.php
     */
    public function report(Exception $e)
    {
        if ($this->shouldntReport($e)) {
            return;
        }
 
        if (method_exists($e, 'report')) {
            return $e->report();
        }
 
        try {
            $logger = $this->container->make(LoggerInterface::class);
        } catch (Exception $ex) {
            throw $e; // throw the original exception
        }
 
        $logger->error(
            $e->getMessage(),
            array_merge($this->context(), ['exception' => $e]
        ));
    }
 
    /**
     * Determine if the exception should be reported.
     *
     * @param  \Exception  $e
     * @return bool
     */
    public function shouldReport(Exception $e)
    {
        return ! $this->shouldntReport($e);
    }
 
    /**
     * Determine if the exception is in the "do not report" list.
     *
     * @param  \Exception  $e
     * @return bool
     */
Arguments
  1. "file_put_contents(/home/naruto2020/public_html/storage/framework/sessions/DffLL5QcghHn7yBxfDud7nhbHrcmWg38IGEtpkjf): failed to open stream: Permission denied"
    
  2. array:1 [
      "exception" => ErrorException {
        #message: "file_put_contents(/home/naruto2020/public_html/storage/framework/sessions/DffLL5QcghHn7yBxfDud7nhbHrcmWg38IGEtpkjf): failed to open stream: Permission denied"
        #code: 0
        #file: "/home/naruto2020/public_html/vendor/laravel/framework/src/Illuminate/Filesystem/Filesystem.php"
        #line: 122
        #severity: E_WARNING
      }
    ]
    
/home/naruto2020/public_html/app/Exceptions/Handler.php
 
    /**
     * A list of the inputs that are never flashed for validation exceptions.
     *
     * @var array
     */
    protected $dontFlash = [
        'password',
        'password_confirmation',
    ];
 
    /**
     * Report or log an exception.
     *
     * @param  \Exception  $exception
     * @return void
     */
    public function report(Exception $exception)
    {
        parent::report($exception);
    }
 
    /**
     * Render an exception into an HTTP response.
     *
     * @param  \Illuminate\Http\Request  $request
     * @param  \Exception  $exception
     * @return \Illuminate\Http\Response
     */
    public function render($request, Exception $exception)
    {
        return parent::render($request, $exception);
    }
}
 
Arguments
  1. ErrorException {
      #message: "file_put_contents(/home/naruto2020/public_html/storage/framework/sessions/DffLL5QcghHn7yBxfDud7nhbHrcmWg38IGEtpkjf): failed to open stream: Permission denied"
      #code: 0
      #file: "/home/naruto2020/public_html/vendor/laravel/framework/src/Illuminate/Filesystem/Filesystem.php"
      #line: 122
      #severity: E_WARNING
    }
    
/home/naruto2020/public_html/vendor/laravel/framework/src/Illuminate/Foundation/Bootstrap/HandleExceptions.php
    }
 
    /**
     * Handle an uncaught exception from the application.
     *
     * Note: Most exceptions can be handled via the try / catch block in
     * the HTTP and Console kernels. But, fatal error exceptions must
     * be handled differently since they are not normal exceptions.
     *
     * @param  \Throwable  $e
     * @return void
     */
    public function handleException($e)
    {
        if (! $e instanceof Exception) {
            $e = new FatalThrowableError($e);
        }
 
        try {
            $this->getExceptionHandler()->report($e);
        } catch (Exception $e) {
            //
        }
 
        if ($this->app->runningInConsole()) {
            $this->renderForConsole($e);
        } else {
            $this->renderHttpResponse($e);
        }
    }
 
    /**
     * Render an exception to the console.
     *
     * @param  \Exception  $e
     * @return void
     */
    protected function renderForConsole(Exception $e)
    {
        $this->getExceptionHandler()->renderForConsole(new ConsoleOutput, $e);
Arguments
  1. ErrorException {
      #message: "file_put_contents(/home/naruto2020/public_html/storage/framework/sessions/DffLL5QcghHn7yBxfDud7nhbHrcmWg38IGEtpkjf): failed to open stream: Permission denied"
      #code: 0
      #file: "/home/naruto2020/public_html/vendor/laravel/framework/src/Illuminate/Filesystem/Filesystem.php"
      #line: 122
      #severity: E_WARNING
    }
    
[internal]
Arguments
  1. ErrorException {
      #message: "file_put_contents(/home/naruto2020/public_html/storage/framework/sessions/DffLL5QcghHn7yBxfDud7nhbHrcmWg38IGEtpkjf): failed to open stream: Permission denied"
      #code: 0
      #file: "/home/naruto2020/public_html/vendor/laravel/framework/src/Illuminate/Filesystem/Filesystem.php"
      #line: 122
      #severity: E_WARNING
    }
    

Environment & details:

empty
empty
empty
empty
empty
Key Value
TZ
"Asia/Kolkata"
REDIRECT_REDIRECT_UNIQUE_ID
"YQwYqN6WUdX64_zlfpwhugAAABA"
REDIRECT_REDIRECT_SCRIPT_URL
"/services/register-partnership-firm"
REDIRECT_REDIRECT_SCRIPT_URI
"https://legalraj.com/services/register-partnership-firm"
REDIRECT_REDIRECT_HTTPS
"on"
REDIRECT_REDIRECT_SSL_TLS_SNI
"legalraj.com"
REDIRECT_REDIRECT_STATUS
"200"
REDIRECT_UNIQUE_ID
"YQwYqN6WUdX64_zlfpwhugAAABA"
REDIRECT_SCRIPT_URL
"/services/register-partnership-firm"
REDIRECT_SCRIPT_URI
"https://legalraj.com/services/register-partnership-firm"
REDIRECT_HTTPS
"on"
REDIRECT_SSL_TLS_SNI
"legalraj.com"
REDIRECT_HANDLER
"application/x-httpd-ea-php73"
REDIRECT_STATUS
"200"
UNIQUE_ID
"YQwYqN6WUdX64_zlfpwhugAAABA"
SCRIPT_URL
"/services/register-partnership-firm"
SCRIPT_URI
"https://legalraj.com/services/register-partnership-firm"
HTTPS
"on"
SSL_TLS_SNI
"legalraj.com"
HTTP_USER_AGENT
"CCBot/2.0 (https://commoncrawl.org/faq/)"
HTTP_ACCEPT
"text/html,application/xhtml+xml,application/xml;q=0.9,*/*;q=0.8"
HTTP_ACCEPT_LANGUAGE
"en-US,en;q=0.5"
HTTP_IF_MODIFIED_SINCE
"Thu, 15 Apr 2021 10:21:30 GMT"
HTTP_ACCEPT_ENCODING
"br,gzip"
HTTP_HOST
"legalraj.com"
HTTP_CONNECTION
"Keep-Alive"
HTTP_X_HTTPS
"1"
PATH
"/usr/local/jdk/bin:/usr/kerberos/sbin:/usr/kerberos/bin:/usr/local/sbin:/usr/local/bin:/sbin:/bin:/usr/sbin:/usr/bin:/usr/X11R6/bin:/usr/local/bin:/usr/X11R6/bin:/root/bin:/opt/bin"
SERVER_SIGNATURE
""
SERVER_SOFTWARE
"Apache"
SERVER_NAME
"legalraj.com"
SERVER_ADDR
"**************"
SERVER_PORT
"***"
REMOTE_ADDR
"3.235.227.117"
DOCUMENT_ROOT
"****************************"
REQUEST_SCHEME
"https"
CONTEXT_PREFIX
"/cgi-sys"
CONTEXT_DOCUMENT_ROOT
"/usr/local/cpanel/cgi-sys/"
SERVER_ADMIN
"**********************"
SCRIPT_FILENAME
"**************************************"
REMOTE_PORT
"*****"
REDIRECT_URL
"/index.php"
GATEWAY_INTERFACE
"CGI/1.1"
SERVER_PROTOCOL
"HTTP/1.1"
REQUEST_METHOD
"GET"
QUERY_STRING
""
REQUEST_URI
"/services/register-partnership-firm"
SCRIPT_NAME
"/index.php"
ORIG_SCRIPT_FILENAME
"/usr/local/cpanel/cgi-sys/ea-php73"
ORIG_PATH_INFO
"/index.php"
ORIG_PATH_TRANSLATED
"**************************************"
ORIG_SCRIPT_NAME
"/cgi-sys/ea-php73"
PHP_SELF
"/index.php"
REQUEST_TIME_FLOAT
1628182696.7357
REQUEST_TIME
1628182696
argv
[]
argc
0
APP_NAME
"Laravel"
APP_ENV
"local"
APP_KEY
"***************************************************"
APP_DEBUG
"true"
APP_URL
"http://localhost"
LOG_CHANNEL
"stack"
DB_CONNECTION
"*****"
DB_HOST
"127.0.0.1"
DB_PORT
"3306"
DB_DATABASE
"*****************"
DB_USERNAME
"*****************"
DB_PASSWORD
"******************"
BROADCAST_DRIVER
"log"
CACHE_DRIVER
"file"
SESSION_DRIVER
"file"
SESSION_LIFETIME
"120"
QUEUE_DRIVER
"sync"
REDIS_HOST
"127.0.0.1"
REDIS_PASSWORD
"****"
REDIS_PORT
"****"
GUPSHUP_USER_ID
"**********"
GUPSHUP_PASSWORD
"*********"
GUPSHUP_FROM
"********"
MAIL_DRIVER
"smtp"
MAIL_HOST
"*****************"
MAIL_PORT
"***"
MAIL_USERNAME
"******************"
MAIL_PASSWORD
"****************"
MAIL_ENCRYPTION
"tls"
MAIL_FROM_ADDRESS
"******************"
MAIL_FROM_NAME
"********"
PAYPAL_MODE
"****"
PAYPAL_CLIENT_ID
"********************************************************************************"
PAYPAL_SECRET
"********************************************************************************"
PUSHER_APP_ID
""
PUSHER_APP_KEY
""
PUSHER_APP_SECRET
""
PUSHER_APP_CLUSTER
"mt1"
MIX_PUSHER_APP_KEY
""
MIX_PUSHER_APP_CLUSTER
"mt1"
Key Value
APP_NAME
"Laravel"
APP_ENV
"local"
APP_KEY
"***************************************************"
APP_DEBUG
"true"
APP_URL
"http://localhost"
LOG_CHANNEL
"stack"
DB_CONNECTION
"*****"
DB_HOST
"127.0.0.1"
DB_PORT
"3306"
DB_DATABASE
"*****************"
DB_USERNAME
"*****************"
DB_PASSWORD
"******************"
BROADCAST_DRIVER
"log"
CACHE_DRIVER
"file"
SESSION_DRIVER
"file"
SESSION_LIFETIME
"120"
QUEUE_DRIVER
"sync"
REDIS_HOST
"127.0.0.1"
REDIS_PASSWORD
"****"
REDIS_PORT
"****"
GUPSHUP_USER_ID
"**********"
GUPSHUP_PASSWORD
"*********"
GUPSHUP_FROM
"********"
MAIL_DRIVER
"smtp"
MAIL_HOST
"*****************"
MAIL_PORT
"***"
MAIL_USERNAME
"******************"
MAIL_PASSWORD
"****************"
MAIL_ENCRYPTION
"tls"
MAIL_FROM_ADDRESS
"******************"
MAIL_FROM_NAME
"********"
PAYPAL_MODE
"****"
PAYPAL_CLIENT_ID
"********************************************************************************"
PAYPAL_SECRET
"********************************************************************************"
PUSHER_APP_ID
""
PUSHER_APP_KEY
""
PUSHER_APP_SECRET
""
PUSHER_APP_CLUSTER
"mt1"
MIX_PUSHER_APP_KEY
""
MIX_PUSHER_APP_CLUSTER
"mt1"
0. Whoops\Handler\PrettyPageHandler