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Himachal Pradesh Partnership Firm Registration

Partnership and proprietorship are considered to be the most popular forms of business organisations in India. These organisations can be easily set up and the number of statutory compliance that has to be done by these organisations are comparatively less than the statutory compliance that applies to Limited Liability Partnerships (LLP) and companies. In this article, we look at the procedure for completing Himachal Pradesh partnership firm registration.

Partnership Firm

A partnership firm is a business constitution where two or more people come together and own a business according to the terms and objectives that are made in the Partnership Deed. Registering the partnership deed is an option that has to be decided by the business owners. The members of the partnership firm share the indebtedness and the profits of the firm in an agreed proportion.

Partnership Firm Registration

Indian partnership firms are governed by the Partnership Act, 1932. A partnership firm can be built by two or more people up to a maximum of 20 members. The partnership firms in Himachal Pradesh has to be registered with the concerned Registrar of Firms.

Partnership Deed

A partnership deed is a document where the rights and obligations of the members of a partnership are written. A partnership deed can either be printed or can be made as an oral agreement. However, verbal contracts cannot be used for tax purposes; hence, partnership deeds are given in a written format. All partnership deeds contain the following details.

Details of the firm and the partners
Nature of the business
Date of starting the business
Duration of the partnership
The capital contribution made by every partner
Profit shared among the partners

In addition to all the above-given details, other clauses may also be required in the partnership deed. They are as follows:

Interest on Partner’s Capital, Partner’s Loan and attention have been charged on drawings.
Salaries, commissions, etc., have to be paid to the partners.
Methods to prepare accounts and make arrangements for audits
Divisions of various tasks and responsibilities, duties, powers and obligations of all the partners.
Rules and regulations that should be followed when there is a sudden demise or retirement of a partner and to add a new partner.

Partnership Deed Format

Choosing Partnership Name

The partners can select any desired name for their firms. However, certain norms have to be followed in choosing a name.

The name should not be identical or similar to the name of another firm that performs a related business. This is because the existing firm could lose its reputation and fame.
The name should not contain terms like a crown, emperor, empress, empire or words meaning sanction, approval or patronage of government. An exemption can be made when the State Government makes a written permit to use such words as part of the firm name.