PARTNERSHIP FIRM

Partnership Firm

Partnership firm is one of the most important forms of business organisation. A partnership firm is an organisation in which two or more people unite to form a business and divide the profits according to an agreement. Partnership firm includes a variety of businesses, occupations and professions. Partnership firms have fewer compliances than companies and are easier to form.
The Indian Partnership Act, 1932 governs and regulates partnership firms across India. The persons who come together to form a partnership firm are called partners. A partnership is established on the basis of a contract between the partners. The contract between the partners is known as the partnership deed which governs the relationship between the partners and the partnership firm.

1
Documents for Registration

First, a member of our Legal Gyane team will give you an overview of the process and present you with a list of essential documents for registration.

2
Submitted Electronically

The applicants need to submit the web form called RUN- Documents can be submitted electronically via email to our official Email ID.

3
Partners for Signatures

After the documents have been verified, a partnership deed is prepared and given to the partners for signatures.

4
Sign Contracts

All partners must sign the contracts on a stamp paper and send a copy to our official email ID.

5
Signed Partnership

Once the signed partnership deed is available, it is registered with the appropriate registrar of firms, and the partner is given a certificate of registration.

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Documents Required for Partnership Firm

As a proof of Identity:

  • Application for registration of partnership (Form 1)
  • Certified original copy of partnership deed
  • Specimen of an affidavit certifying all the details mentioned in the partnership deed and documents are correct
  • Partner's PAN card and address proof
  • Proof of principal location of business of the firm.
Q. Is a partnership firm a separate entity?
The partners in a partnership firm are the owners and thus are not a separate entity from the firm. Any legal issues or debt incurred by the firm is the responsibility of its owners, the partners.
Q. How much time does it take to register a partnership firm?
The registration of a partnership firm in India can take up to 10 to 12 working days. However, the time taken to issue a certificate of incorporation may vary as per the regulations of the concerned state. The registration of a partnership firm is subject to government processing time which varies for each state.
Q. Who can be the partners in a partnership firm?
The individuals who are residing in India can only become partners or members of a partnership firm. Foreign individuals who want to form their business in India can choose private limited companies.
Q. What is the scope of liability when it comes to partnerships?
Every partner is jointly liable with all the other partners and also individually, for all acts/activities of the firm, during the course of business while he/she is a partner. This means that if a loss or injury is caused to any third party or a penalty is levied during the course of business all partners will be held liable even if the injury or loss was caused by one of the partners.
Q. What are the minimum and the maximum number of partners required for the formation of partnership firms in India?
A minimum of 2 members and a maximum of 20 members are required for the formation of a partnership firm.

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