Manipur Partnership Firm Registration
Manipur Partnership Firm Registration
Partnership and proprietorship are the two most popular forms of Indian business firms. It is very easy to set up a partnership or a proprietorship because the number of statutory compliance required by these organisations are less than the statutory compliance that is applicable to Limited Liability Partnerships (LLP) and companies. In this article, we look at the procedure for Manipur partnership firm registration in detail.
A partnership firm is a business establishment that is formed by two or more people abiding by the terms and conditions agreed in the Partnership Deed. Registering a partnership is not mandatory and it is up to the business owners to decide on the registration. On the other hand, when a partnership firm is registered, it can avail various benefits.
Partnership Firm Registration
All Indian Partnership Firms are administered by the Partnership Act, 1935. A partnership firm can be established by two or more people up to a maximum of 20 partners. In Manipur, all partnership firms have to be registered with the concerned Registrar of Firms.
Benefits of Registration
Though Partnership Firm Registration in Manipur is not mandatory, the following benefits can be obtained on registration.
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.
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.
The first step in registering a partnership firm is obtaining a partnership deed. A partnership deed is a document that contains the principles and obligations of the partners of the firm. In addition to this, the documents include the name and address of the partners, the nature of the business, place of business, duration of business, capital contribution and profit and loss sharing between the partners and the remuneration payable to partners.
Other clauses that are required in the partnership deed 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
- 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.
The following documents are required during the registration of a firm.
- Duly completed Form No. 1.
- Partnership Deed registered by the Sub-Registrar.
- Passport size photographs
- Aadhaar Card.
Procedure to Register Partnership Firm
Given below are the process to register a partnership firm in Manipur:
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.
A court fee stamp of Rs. 3 has to be affixed in the application form.Form No. 1