What is Partnership Registration ?
A Partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and goals set out in the Partnership Deed. Partnership registration is relatively easy and is prevalent among small and medium sized businesses in the unorganized sectors. Partnership Registration is done through Legal Consultants
Why Partnership Registration ?
Easy to establish
Audit not required
Documents Required For Partnership Registration
The following documents are required for the registration of a Partnership firm:
- Statement in Form 1 with the prescribed fees
- Notarised True copy of the Partnership Deed stating the following :
- The firm-name
- The nature of business of the firm
- The place or principal place of business of the firm
- The names of any other places where the firm carries on business
- The date when each partner joined the firm
- The names in full and permanent addresses of the partners
- The duration of the firm
- Proof of ownership or rent/lease of the location of your business.(e.g. Electricity Bill/ Water Bill or Rent/Lease/Leave and Licence Agreement of Business Place)
- Copy of PAN Card of partners
- Copy of Aadhaar Card/ Voter identity card
The Statement must be signed by all the partners of the firm and must also be verified by affidavit in the prescribed manner.
Compare Your Options
|Private Limited||Limited Liability Partnership||One Person Company||Partnership Firm||Sole Proprietorship|
|Recommended For||Start-ups and growing||Professional services firms||Sole promoters||Home businesses||Small traders|
|Ease of Accommodating||Very easy to accommodate||Possible, but unlikely||Possible, but severely||Almost impossible||Impossible|
|Limited Liability Protection||Yes||Yes||Yes||No||No|
|Tax Advantages||Few benefits||Most efficient||Few benefits||Minimal||Minimal|
Need for Partnership Registration
If you don’t register your Partnership :
Partner Cannot sue firm: A partner in an unregistered partnership firm cannot sue the firm for enforcing any rights under the Indian Partnership Act, 1932.
Cannot claim Setoff in a dispute with a third party.
The firm cannot sue third parties whereas the third parties would be able to sue the firm irrespective of registration.