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Partnership Registration

Partnership Registration

A partnership is a formal arrangement between two or more parties who cooperate to manage and operate a business. Various partnership arrangements are in which all partners might share liabilities and profits equally or in agreed ratios. Registration of firm is not compulsory but partners usually go for registration because consequences of non-registration are very severe and detrimental to their interest.

Steps of registration:

  • Registration of the firm takes effect from the date of entry in the register of the firm. The partners create a partnership deed which contains information like:

 Name of the firm

Date of commencement of business

Address of the firm and partners

Capital contribution of partners

Profit sharing ratio

  • A copy of this deed is required for registration of the firm. Partnerships in India are governed by the Indian Partnership Act, 1932. As per the Partnership Act, Registration of Partnership Firms is optional and is entirely at the discretion of the partners. The Partners may or may not register their Partnership Agreement.

The procedure for Registration of Partnership Firms in India is fairly simple.

  • An application and the prescribed fees are required to be submitted to the Registrar of Firms of the State in which the firm is situated. The following documents are also required to be submitted along with the application:-

1.  Application for Registration of Partnership in Form No. 1

2.  A duly filled specimen of Affidavit

3.  Certified True Copy of the Partnership Deed

4.    Ownership proof of the principal place of business or rental/lease agreement thereof. A registered firm has multiple benefits.







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