Partnership Firm Registration Online with Documents

Partnership Firm Registration Online is stated in the Indian Partnership Act, 1932. In a partnership, there is more than one Individual involved and the registration is done with the Registrar of firms by the partners.

The partners shall register the partnership firm with the Registrar of firms of the concerned state where the firm is situated. A partnership firm is an association of two or more partners coming together for a business and dividing the profits in an agreed ratio.

The Indian Partnership Act, 1932 is governing and regulating partnership firms in India. The individual who comes together to form the partnership firm is known as a partner. The partnership firm is created under a contract between two or more partners. In this article, we will be understanding the process of partnership registration along with its documents and benefits.

What is the process of Partnership Firm Registration Online?

The Partnership Firm Registration process online is optional and not compulsory under the Indian Partnership Act, 1932. It is the voluntary choice of the partners. The following are the steps for the Partnership Firm Registration procedure:

Step 1: Select a Unique name

Step 2: File Form-1 for Application for registration

Step 3: Submit the filled application to the Registrar of firms of the state in which the firm is situated along with prescribed fees. The application for registration must be signed and verified by the partners.

Step 4: A Partnership Deed is planned and prepared properly with the consent of all the partners of the firm on the stamp paper. The following is an important component of the Partnership deed for Partnership Firm Registration online:

• Name and Address of each partner
• Nature of business
• Date of starting the firm and capital contributed by each partner
• Capital to be contributed by each partner for Partnership Firm Registration
• Profit/loss sharing ratio among the partners
• Rights, duties, Salaries, and commission or any amount payable to partners
• Details of loan offered by the partners of the firm
• Processes to be followed in the event of retirement or death of an existing partner or dissolution of the firm
• Accounting and Auditing
• Banking and voting rights
• Other clauses may be decided by a mutual discussion with the partners.

Step 5: Partnership Firm Registration Certificate

When the registrar is satisfied with the registration application step and the documents for Partnership Firm Registration online, he will register the firm in the Registrar of firms and issue the Partnership Registration Certificate. The registrar of firms contains up-to-date information on all firms, and anybody can view it after making the payment of given fees.

Step 6: Registration under Income tax and issuance of PAN

Once the partnership deed is registered, a PAN card application has to be made with the Income tax department. It takes 3-7 working days approx. for registration under the department of Income tax.

Step 7: GST Registration

An application must be made with the department of GST registration which depends upon the requirement of the business under the GST law.

Step 8: Bank account opening

Once all the steps are completed for Partnership Firm Registration online, the current bank account should be opened by the partnership firm.

Note- To download the Registration certificate - You can also keep a copy by performing the Partnership Firm Registration certificate download on the Partnership Firm Registration govt website.

Give the list of Partnership Firm Registration documents.

The documents which are required to be submitted to the Registrar at the time of the Partnership Firm Registration procedure online are given below:

• Application in Form 1 with the prescribed fees
• A notarized true copy of the Partnership deed declaring the following:
• Name of the firm
• Nature of the business
• Place of business
• Name of any other places where business is carried on for Partnership Firm Registration online
• The date on which each partner joined the partnership firm
• Names in the full and permanent address of the partners
• Duration of partnership (If decided)
• Identity Proof - Copy of Aadhar card/Voter Identity card
• An affidavit certifying all the above-mentioned details in the partnership deed and other registration documents are correct and best of their knowledge
• PAN card and address proof of the partners
• Proof of principal place of business of the form (ownership documents or rental/lease agreement) – Signed NOC from the owner of the premises
• Any registration document issued by the state or central government, such as GST registration for Partnership Firm Registration Online India.

When the Partnership Firm Registration process is completed and the registrar is satisfied with the provided documents, he will register the firm in the Registrar of firms and issue a Certificate of Registration to the firm.

You can check the Partnership Firm registration status by visiting the office of the Registrar of firms of the state and making an inquiry about the status of registration of a partnership firm at the Registrar's office.

Timelines for Partnership Firm Registration

The Partnership Firm registration process is completed in 10 days approximately which is subject to departmental approval and replies from the respective department.

Checklist for Partnership Firm Registration

The following points given are the basic steps for Partnership Firm Registration Online:

• Drafting of Partnership deed
• Minimum two members as partners
• Maximum equal to or lower than twenty partners
• Select an appropriate name
• Principal place of business
• PAN card and opening of current bank account of the firm

What are the Benefits of Partnership Firm Registration?

The following are the partnership firm benefits of Registration:

1. Easy formation – It is not mandatory to register the partnership firms and also it does not involve any formalities.

2. Larger resources – The partnership firm has larger resources due to more number of human resources involved in it their business operations in comparison with the sole proprietorship.

3. Flexibility in operation– The Partnership Firm Registration Online has the benefit of flexibility as it can take decisions and changes in accordance with the dynamic situation of the economy.

4. Better management – The ownership, administration and profit in the partnership firm that the business can be managed very well.

5. Sharing of Risk – In the partnership firm the loss is shared individually by all the partners which reduces the burden and makes the process at ease.

Conclusion

The Partnership firm is a very popular business form in India. There must be two or more persons joining together as partners for running a firm and managing a business while sharing profit and losses in an agreed ratio. 

The Partnership Firm Registration Online is only registered when the partnership deed is signed and accepted by all the partners of the firm. The Indian Partnership Act, 1932 is governing law for partnership firms. There are benefits to the registration of a Partnership firm and we have understood the firm's registration procedure checklist timeline of registration.