Bihar Partnership Firm Registration
Bihar Partnership Firm Registration
Partnership firm registration can be acquired by a group of individuals who come together for doing a for-profit. In Bihar, all partnership firms are regulated by the Indian Partnership Act, 1932, and as per this provision, a partnership firm must be registered. In this article, we look at the procedure for Bihar partnership firm registration in detail.
Registration of Firms Rules, 1932
A partnership firm agreement is applicable between two or more persons who are qualified to contract for a business purpose, subject to the following:
- Every person in the age of majority according to the regulations.
- An individual not suspended from contracting by any law which makes him ineligible to join a partnership.
Benefits of Registering Partnership Firm
There are various benefits for registering a partnership firm which is as follows:
Easy to setup: Partnership firms can be registered easily compared to Limited Liability Partnership, as it is not necessary to get DSC, DIN, and Name Endorsement. LLP registration comes under the Central Government (Ministry of Corporate Affairs) laws while State Governments laws govern the filing of a partnership firm.
Name of Partnership Firm: Partnership firms can choose to have any name as long as it does not violate a registered trademark.
No need for annual filing: Partnership firms are not expected to file its annual return with the Registrar each year, unlike a Limited Liability Partnership or Company.
Non-Registration of Firm
Unregistered firms and partners go through the following consequences.
- A claim for setoff towards an unregistered firm is not possible.
- The unregistered firm partner will not be eligible to file for a case in court by a partner towards the firm or another co-partner.
- No case can be filed in court by the firm against third parties.
Partnership Firm Naming
The name of the partnership firm should not be related to the name of any other existing company operating similar business to avoid duplication in the name of firms.
Also, the name must not include terms like Emperor, Empress, Crown, Empire.
Approval of Partnership firm only if the State Government signifies its consent in writing to the acceptance of such words as part of the name of the partnership firm.
Deed of Partnership
A Partnership Deed is an official document in which the law for the members of a partnership is included. A Partnership deed consists of elements that are mentioned below:
- Name of firm and partner.
- Address of firm and partner.
- Type of business to be carried out by the partners of the firm.
- Commencement date of business/ firm.
- The term of the partners (whether for a project/ fixed period).
- Profit-sharing ratio among the partners.
- Capital contribution from each partner.
The elements represented above are the essentials that are needed in every partnership deed. If required, the partners may also cover any additional clauses. Some of the other provisions which can be involved in a deed of a partnership are listed here:
- Interest on Partner Loan, Partner Capital and Interest, if any has to be charged.
- Commissions, Salaries, etc., if any, liable for partners in a firm.
- The method of making accounts and audit arrangements.
- Division of responsibilities and tasks, i.e. the powers, duties, and commitments by all the partners in the firm.
- Terms and conditions to be followed in case of retirement, death and admission of a new partner.
While submitting the application form for partnership firm registration, produce the following documents:
- Application for Registration of Partnership.
- A duly filled specimen of Affidavit.
- Certified True Copy of the Partnership Deed.
- Ownership proof of the place of business or rental or lease agreement.
Online Application Procedure
To register for online partnership firm in Bihar, follow the steps specified here:
Step 1: Visit Official Website
Visit the official website of Bihar Registration Department.
Step 2: Click on e-Services
Click on “e-Services” which would be displayed on the homepage of the portal.
Step 3: Select the registration option
Then, select “Society/Firm Registration” option from the dropdown list.
Step 4: Click on the Firm registration
Click on “Firm registration click here” to register for a society.
Step 5: Create a User ID
Then, the applicant has to create a new User ID by entering the required details such as:
- Applicant name
- Email Address
- Mobile number
Step 6: Enter the OTP received
After completing the details, receive an OTP to the registered mobile number. Enter the OTP and click on the “Create User” icon.
Step 7: Redirected to the login page
After creating the username and password, the applicant will redirect to the login page.
Step 8: Login into the page
Enter the login ID, i.e. the applicant’s username and password to log in.
Step 9: Application for firm registration
After logging onto the website, the application for firm registration will pop up on the next page.
Step 10: Attach the documents
Fill the application form with the required details and attach the appropriate documents with it.
Step 11: Make the online payment
After registering for the partnership firm, the applicant has to make an online payment to proceed further.
Step 12: Receive application number
The applicant will receive the application number after making the payment.
Note: Upon submission, the applicant can view the status of the registration of the partnership firm with the help of application number/acknowledgement receipt.
Track Application Status
The applicant can check the status of the application status by following the steps below:
Step 1: Official website
Visit the official portal of Bihar Partnership Registration.
Step 2: View application status
Click on “View application status” which is present on the home page of the portal.
Step 3: Click on the status
The applicant has to click on the “Status” option from the menu
Step 4: Provide relevant details
Now enter the appropriate information such as
- Registration type
- Certificate number
- Document number
- Application details
- Application ID
Step 4: Click on the view button
After entering the details, click on the “View” icon to view the status of your application.
The authority responsible for registering a partnership firm under the Indian Partnership Act is the Registrar of the Registration Department.