With the increasing use of the technology, the government entities can do functions like: registration and compliances online. In India, although a number of states still follow an offline procedure, there are few states who have adopted the online registration process, which requires the application to be filed with the Register of Firms (ROF).
Follow these simple steps to register for a Partnership Firm under the Act.
Step 1: Choose Name for a Partnership
A firm should select a name that does not :
➤ The name should not be too similar or identical to an existing firm doing the same business.
➤ The name should not contain words like emperor, crown, empress, empire or any other words, which show sanction
or approval of the government.
Step 2: Draft a Partnership Deed
The partnership deed is the most important document for the registration of the company as it provides the registrar with all the following necessary information:
➤ Name and address of company and all partners
➤ Contact details of partners
➤ Nature of the business
➤ Duration of the partnership
➤ Profit/Loss sharing ratio
➤ Rules regarding the solvency of the firm
➤ Information of capital to be contributed by each partner
In Addition, the Deed should also contain information about the remuneration payable to partners in excess of the profit shares, responsibilities of partners, audit procedures, etc.
Step 3: Apply for a PAN Card in the Partnership Name
A firm, irrespective of registration under the Partnership Act, has to apply for a Permanent Account Number to the Income Tax Department. This can be applied on the basis of a current account in the name of the firm. The PAN is a requirement to fulfil the obligation of paying taxes.
Step 4: File a Registration Application
The registration application requires a firm to provide information regarding the name of the firm, the nature of the business it will carry, address of the business, names and addresses of all the partners, date of commencement of business.
Step 5: Submit the Documents
Along with the registration application, the following documents are to be submitted to the Registrar as a part of the registration process:
➤ Application for registration of partnership (Form 1)
➤ A certified original copy of partnership deed
➤ Specimen of Affidavit
➤ PAN Card in the name of partnership firm
➤ Proof of address of the partnership firm, ownership deed, lease and rent agreements, etc. are common acceptable documents
➤ PAN Cards and address proofs of all the partners.
Step 6: Payment of the Fees & Stamp duties
Registration fee as well the stamp duty needs to be paid at the time of the submission of the documents with the Registrar. The fees vary across states. If the dues are not paid, then the registration will not get completed.
Step 7: Finalize the Deed
To legalize the deed, it should be provided to each partner in a written form on a stamp paper. All the partners in front of the notary should duly sign one stamp paper deed. The value of the stamp varies from state-to-state. The signed copy is there after submitted to the Registrar during the registration process.
Step 8: Certification from the Registrar
The registrar, after thorough examination of the documents, will issue a registration certificate.
After this, the firm will be on the record of the Register of Firms. On the date of this entry, the firm shall be deemed to be registered. The partnership firm is required to add ‘(Registered)’ after its name from the date of registration