Partnership Firm Registration in Ghaziabad
Partnership is the most popular form of business after proprietorship in India. We are an expert firm registration consultant in Ghaziabad. Get your Partnership firm registered in Uttar Pradesh Ghaziabad Online.
Why Partnership Firm?
A partnership firm is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed that may or may not be registered. In such a business, the members are individually partners and share the liabilities as well as profits of the firm in a predetermined ratio.
Govern by Partnership Act, 1932
A partnership firm in India is governed by The Partnership Act, 1932. Two or more people can enter into an agreement with a deed of partnership and form a Partnership firm subject to maximum of 20 partners.
A partnership firm can be registered or unregistered. It can be registered with the Registrar of Firms (ROF). Though registration is not mandatory, it provides some legal protection to partners in case they have differences between them.
How to create a Partnership Deed?
The document in which the respective rights and obligations of the members of a partnership is written is called the Partnership Deed.
A partnership deed agreement may be written or oral. However, practically oral agreement does not have any value for tax purposes and therefore the partnership agreement should be written.
Partnership Deed must include:
The following are the essential characteristics of a partnership deed:-
1. Name and Address of the firm as well as all the partners
2. Nature of business to be carried on
3. Date of Commencement of business
4. Duration of Partnership (whether for a fixed period/project)
5. Capital contribution by each partner
6. Profit sharing ratio among the partners
The above are the minimum essentials that are required in all partnership deeds. The partners may also mention any additional clauses.
Additional Clauses in Partnership Deed
Apart from the essential clause, you may include the following additional clauses in the partnership deed:-
1. Interest on Partner’s Capital, Partners’ Loan, and Interest, if any, to be charged on drawings.
2. Salaries, Commissions, etc, if any, payable to partners
3. Method of preparing accounts and arrangement for audit
4. Division of task and responsibility i.e. the duties, powers and obligations of all the partners.
5. Rules to be followed in case of retirement, death and admission of a partner.
BENEFITS OF PARTNERSHIP REGISTRATION
Easy to Start: A Partnership is easy to form as no cumbersome legal formalities are involved. Its registration is also not essential. However, if the firm is not registered, it will be deprived of certain legal benefits. The Registrar of Firms is responsible for registering partnership firms.
Business Name: Since the name of a Partnership firm is not registered, a Partnership firm can choose to have any name – as long as it does not infringe on a registered trademark. However, since the name is not registered, any other person can also use the same business name unless trademark registration is obtained.
Easy to maintain / Annual Filing NOT Required: A Partnership firm is not required to file its annual accounts with the Registrar each year, unlike a Limited Liability Partnership or Company. Limited Liability Partnerships and companies are required to file their annual accounts with the Registrar of Companies each year.
Documents Required for Partnership Registration
1. Form No. 1 (Application for registration under Partnership Act)
2. Original copy of Partnership Deed, signed by all partners
3. Affidavit declaring an intention to become a partner
4. Rental or lease agreement of the property/campus on which the business is set