Sikkim Partnership Firm Registration

Partnership and proprietorship are the two most common Indian business entity types. Establishing these two types of entities can be done easily when compared to setting up a Limited Liability Partnerships or Company. This is because the number of statutory compliance required by these types of entities are less than the statutory compliances required by a LLP and by a company. In this article, we look at the procedure for obtaining Sikkim Partnership Firm Registration in detail.

Partnership Firm

A partnership firm is formed by two or more members who work hand in hand with each other agreeing with the terms and conditions put forth by them. A partnership firm can avail various benefits when it is registered. However, registering a partnership firm is not mandatory in India.

Partnership Deed

In order to register a partnership firm, a business organisation has to obtain a partnership deed. A partnership deed is a document that records the agreements and responsibilities of every member of a firm. Moreover, the documents comprises of the details of the partners, the business carried out by the partners, place where business is carried out, duration of business, capital contribution and profit and loss that has to be shared between the partners and the remuneration payable to partners. Additional provisions that are required in the partnership deed are given below.

• Interest on Partner’s Capital, Partners’ Loan and attention that have been debited on drawings.
• Salaries, commissions, and other payments that should be given to the partners of the firm.
• Methods to process accounts and to make other arrangements for auditing.
• Assignments and responsibilities, duties, powers and obligations of all the partners.
• Rules that should be followed during a sudden demise or retirement of a partner and to add a new partner.

Partnership Deed Format

Partnership Firm Registration

In India, every partnership firm is governed by the Partnership Act, 1932. A partnership firm can consist of a minimum of two or three partners and a maximum of 20 partners.

Selecting a Partnership Name

The partners can select any name for their firms. However, certain norms have to be followed while selecting a name.

• The name should not be a familiar or similar name of another firm that performs a similar business. This is because the already existing firm could lose its reputation.
• The name should not hold titles like a crown, emperor, empress, empire or words meaning sanction, approval or patronage of government.

Documents Required

The following documents are mandatory to register a firm in Sikkim.

• Duly completed application form.
• Partnership Deed registered by the Sub-Registrar.
• Passport size photographs
• Aadhaar Card.

Firm Establishment

Establishing a partnership firm in Sikkim involves the following procedures.

Step 1: Making  partnership deed A partnership deed has to be produced with a mutual understanding between the partners. Step 2: Print the document The deed has to be printed on a stamp paper of a minimum of Rs. 500. Step 3: Payment mode The stamp duty payment can be made online on the GRAS website. Step 4: Obtaining the signature The document has to be signed by all the partners with witnesses on the last page.

Procedure to Register Partnership Firm

The following steps have to be followed to register a partnership form in Sikkim.

Step 1: Duly fill in the form Form 1 has to be duly completed by the member of 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 Once all the documents are attached with the application, 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 Firms log. Once all the procedures are completed, the concerned authority issues the Certificate of Registration.