Meghalaya Partnership Firm Registration
Meghalaya Partnership Firm Registration
In India, Partnership and Proprietorship are the most common forms of business entities adopted by MSMEs. These firms can be easily set up as the number of required statutory compliance is less than the required number of statutory compliance by Limited Liability Partnerships and a Company.
A partnership firm is a business organization where two or more individuals can own by abiding the rules and regulations set in the Partnership Deed. In a firm, all partners can share the profits and the loss at an agreed rate. In this article, we look at the procedure for starting a Meghalaya partnership firm registration.
Partnership Registration
In India, the Partnership Act, 1932 regulates every partnership firm registration. The total number of partners in a firm can range from two members to twenty members. It is not mandatory to register a partnership firm; therefore, registering a partnership firm is entirely up to the firm’s owners. However, after firm registration, it entitles to receive some benefits.
Need for Registration
The state’s Registrar of Firms (ROF) is responsible for registering partnership firms. A firm has to be registered so that people can join to run the business and to continue with the legal bindings and share their profits according to their rules laid by them.
Required Documents
To register a partnership firm in Meghalaya, following document along with the application form
- Form No. 1 application form
- Partnership deed signed by all the members
- An affidavit that states the partner’s intention to join the firm
- Rental or lease agreement of the property
Selecting Name
A partnership can select any desired name for their firm, considering the given norms.
- The name should not be identical to an already existing name of a firm. This may result in conflicts and confusions between the firms.
- The name should not contain terms like Crown, Emperor, Empress, Empire or terms that stand for approval or patronage of a Government.
Partnership Deed
A partnership deed is a document that contains the rights and necessities that has to be followed by the members of a firm. A partnership deed has to be given in written format since a verbal partnership deed does not add for any tax purposes. Given below are the components of a partnership deed:
- Details of all the partners
- Nature of the business carried by the firm
- Date of commencement of the business
- Partnership duration
- Capital contribution of every partner
- Profit and loss that has to be shared among the partners
Additional requirements in the deed are as follows:
- Interest on Partner’s Capital, Partners’ Loan, and Interest, if any.
- Salaries, Commissions, etc., if any, payable to partners.
- Method of preparing accounts and arrangement for audit.
- Division of task and responsibility, i.e. the duties, powers and obligations of all the partners.
Meghalaya Partnership Firm Registration Benefits
By registering a partnership deed, it can avail the following benefits.
Easy to Start
A partnership firm can be formed easily since there are no legal formalities required. Meanwhile, if a firm is not registered, it will be denied certain legal benefits.
Business Name
A partnership firm can choose any name as long as it does not sound similar to an already existing firm. This is essential so that other company’s reputation does not get affected.
No Requirement of Annual Filing
An Limited Liability Partnerships (LLP) or a company has to file their annual accounts with the Register of Companies every year, whereas, there is no requirement of this for a partnership firm.
Application Procedure
Given below are the steps to register a partnership firm in Meghalaya.
Step 1: Duly fill in the form
Form 1 has to be duly completed by the member of a partnership firm.
Step 2: Attach the required documents
The applicant has to attach all the required documents along with the application form.
Step 3: Sign the application
After attaching the documents, all the partners of the firm have to sign the application.
Step 4: Issuing the Certificate
The register after viewing the application makes the required changes and then enters in the Register of Firm’s log. On completing all the procedures, the concerned authority issues the Certificate of Registration.
Form No.1 application