A partnership firm is an organization which is formed with two or more persons to run a business with a view to earn profit. Each member of such a group is known as partner and collectively known as partnership firm. These firms are governed by the Indian Partnership Act, 1932 and rules made thereunder.
There are two kinds of Partnership firms, one is registered and another un-registered Partnership firm.
Partnership firms are built by drafting a Partnership agreement between the Partners and Paridhi Corporate Advisors can help you in starting a registered or un-registered Partnership firm successfully in India.
Registration of Partnership Firm:
As per the Partnership Act 1932, it is not mandatory to register a partnership firm. The firm does not have a separate legal identity and registration will not alter this fact. However, registration is the definite proof of the existence of the firm and its legality.
For registration of partnership firm we need to submit following documents to Registrar of Partnerships:
1. Partnership Deed;
2. Address Proof for principal place business of the Partnership firm like electricity bill, water bill, property tax bill, gas receipt etc. and also, NOC from landlord will be submitted;
3. An affidavit is also required to be submitted certifying that all the details mentioned in deed and documents are correct and;
4. Identity and Resident proof of All Partners etc.
Advantages of Registration of Partnership Firm:
1. Registered Firm can file a case in Court against Third Parties. For example, if the any person has not paid his dues to the firm, the firm cannot sue him if it is unregistered;
2. Power to Take Legal Action against Firm or Other Partners like mismanagement, and;
3. Power to claim set-off.
