Himachal Pradesh Partnership Firm Registration
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, Partners’ Loan and attention have been charged on drawings.
- Salaries, commissions, etc. that have to be paid to the partners.
- Methods to prepare accounts and making arrangement 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.
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.
Advantages of Partnership Registration
Even though registering partnership firms in Himachal Pradesh is not mandatory, the following benefits can be availed when the firm is registered.
Easy to Start
A partnership firm can be easily started when it is registered as it does not require any legal formalities. When a firm is not registered, certain legal benefits are restricted to the partnership firm.
Business Name
A partnership firm can select any name as long as it does not cause any violation of a registered trademark.
No Requirement of Annual Filing
A partnership firm need not file its annual accounts with the Registrar each year like an LLP or any other company.
Documents Required
- Duly filled Form No.1 application form
- Original Partnership Deed signed by all the partners
- Affidavit declaring the intention to become a partner has to be made
- Agreement of rent or lease of the property/ campus on which the business is set
Procedure to Register Partnership Firm
Given below are the process to register a partnership firm in Himachal Pradesh:
Step 1: Fill in the application
Form 1 has to be duly completed by all the member of the company.
Step 2: Attach the documents.
The applicant has to attach all the required documents along with the application.
Step 3: Signing the application
Once all the documents are attached, the application has to be signed by all the partners of the form.
Step 4: Issuing the Certificate
The register after viewing the application and if satisfied with all the given details, make an entry of statement in a log called the Register of Firms and then issues the Certificate of Registration.
Form No.1