Delhi Partnership Firm Registration
Delhi Partnership Firm Registration
Partnership firm registration can be obtained for any association of people who join together for a business purpose and to share the profits. In Delhi, all partnership firms are regulated by the Indian Partnership Act, 1932, and as per these provisions, a partnership firm must be registered. In this article, we view the procedure for Delhi partnership firm registration in detail.
Registration of Firms Rules, 1932
A partnership agreement can be applied between two or more persons who are qualified to contract for the business plan.
- Every person in the age of majority according to the law.
- A person not suspended from contracting by any law to which he is eligible to enter into a partnership.
Advantages of Registering Partnership Firm
Simple to start: Partnership firms can be registered compared merely to Limited Liability Partnership, as it is not required to get DSC, DIN, and Name Endorsement. LLP registration falls under the Central Government (Ministry of Corporate Affairs) laws while State Governments laws govern the registration of partnership firm.
Firm Name: Partnership firms can prefer to have any name as long as it does not infringe a registered trademark.
Annual filing not necessary: Partnership firms are not required to file their annual reports with the Registrar each year, unlike a Limited Liability Partnership or Company.
Know also about company yearly return filing.
Non-Registration of Firm
A partnership firm whether registered or unregistered. Unregistered firms and partners undergo the following consequences.
- A claim for setoff towards an unregistered firm is not permissible.
- The unregistered firm partner will not able to file for a case in a court by a partner towards the firm or another co-partners.
- Any case cannot be filed in the court by the firm toward third parties.
Partnership Firm Naming
The name of the partnership firm must not be too similar or identical to the name of any other existing company performing relevant business to regret duplication in the name of firms.
Also, the name must not contain terms like Emperor, Empress, Crown, Empire or the terms indicating the approval of Government, sanction 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 a record in which the terms and conditions of the members of a partnership are included. The Partnership deed consists of the following components as below:
- Both Firm and Partners address as well as name.
- Nature of Business of the Firm.
- Commencement date of business or firm.
- The duration of Partners (whether for a project/ fixed period).
- Profit distribution ratio among the partners.
- Capital contribution from each partner.
The components specified above are the essentials that are needed in all partnership deeds. If required, the partners may also cover any further clauses. Some of the additional provisions which can be involved in the deed of the partnership are listed here:
- Interest on Partners’ Loan, Partner’s Capital and Interest, if any.
- Commissions, Salaries, etc., if any, chargeable for partners in the firm.
- The process of making accounts and audit arrangement.
- Division of responsibility and task, i.e. the powers, duties, and commitments by all the partners in the firm.
- Rules and Regulations in case of retirement, death and admission of a partner.
To apply for partnership firm registration in Delhi, produce the following documents along with the application.
- Form No.1 duly filled and affixed Rs.3 court fee stamp.
- A photocopy of Partnership deed on minimum stamp paper or Rs.200.
- Ownership Proof of Principal Place (any one of the following)
- Registered document of the property
- House tax receipt.
- Water bill.
- Electricity bill in the name of the property owner.
- Affidavit/NOC on Rs.10 and Rs.5 Notary stamp.
- Rent agreement (If rented property).
- Residential proof of all the partners (any one of the following)
- Voter card.
- Driving Licence.
- Affidavit/NOC on Rs.10 and Rs.5 Notary stamp and ownership proof of other places (if mentioned in Form no.1).
Note: For all the above documents requires an attestation from the Advocate Notary or C.A. with the Registration number.
Partnership Firm Registration Procedure
To apply for the partnership firm registration certificate in Delhi, kindly follow the steps given below:
Step 1: Approach the Concerned Registrar
The applicant has to approach the concerned Registrar with the application; affidavit in a prescribed format along with all supporting documents needs to be submitted.
Note: Also download the Partnership Firm application form in the PDF from the official website. The application form is below for the quick reference:
Step 2: Complete the Details
Now, fill all the mandatory details such as Firm details and Partners of the firm.meow-min
Step 3: Submit the Application Form
Then attach all the supporting documents with the form and submit it to the office.
Step 4: Collect Application ID
After submitting the form, collect your application I.D., and that can be applied for future reference.
Step 5: Issuance of Certified Copies
The concerned authority, Registrar, will process the Partnership firm Registration request and after successful verification, the Registrar will issue the documents.