Partnership

Registration

Partnership
A partnership is an arrangement where parties, known as partners, agree to cooperate to advance their mutual
interests.
The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or
combinations.
Organizations may partner together to increase the likelihood of each achieving their mission and to amplify their
reach.
A partnership may result in issuing and holding equity or may be only governed by a contract.

Partnership agreements can be formed in the following areas:

Business
Politics

Knowledge
Individual

Registration Procedure For Partnership Firms in India

Partnership firms in India are governed by the Indian Partnership Act, 1932. While it is not
compulsory to register your partnership firm as there are no penalties for non-registration.
It is advisable since the following rights are denied to an unregistered firm:
A partner cannot file a suit in any court against the firm or other partners for the enforcement of
any right arising from a contract or right conferred by the Partnership Act
A right arising from a contract cannot be enforced in any Court by or on behalf of your firm
against any third party

Further, the firm or any of its partners cannot claim a set off (i.e. mutual adjustment of debts
owned by the disputant parties to one another) or other proceedings in a dispute with a third party.

Registration Procedure
A partnership firm can be registered whether at the time of its formation or even subsequently. You need to file an
application with the Registrar of Firms of the area in which your business is located.

The following are the essential characteristics of a partnership deed:

Name of your firm
Name of the place where business is carried on
Date of partners joining the firm
Full name and permanent address of partners.
Duration of the firm

Every partner needs to verify and sign the application

Ensure that the following documents and prescribed fees are enclosed with the registration application :
Application for Registration in the prescribed Form I
Duly filled Specimen of Affidavit
Certified copy of the Partnership deed
Proof of ownership of the place of business or the rental/lease agreement thereof

It may be noted here that the name of your partnership firm should not contain any words which may express or
imply the approval or patronage of the government except where the government has given its written consent
for the use of such words as part of the firms name.
Once the Registrar of Firms is satisfied that the application procedure has been duly complied with, he shall
record an entry of the statement in the Register of Firms and issue a Certificate of Registration.

WHY PARTNERSHIP REGISTRATION?

Relatively Inexpensive

Minimal Compliances

Easy to establish

Audit not required

So log on now at

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