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Tripura Partnership Firm Registration

Tripura Partnership Firm Registration

Tripura Partnership Firm Registration

Partnership firms are the most favoured forms of the business constitution that are owned, controlled and managed by a group of people for profit. Partnership firm is the second most popular type of business entity in India after proprietorship. Under the provision of section 57 of Indian Partnership Act, 1932 a firm can be registered at any time by applying with the concerned authority. In this article, we look at the guidelines for Tripura partnership firm registration in detail.

 In case you require assistance registering a Partnership Firm in Tripura, get in touch with an IndiaFilings Advisor at [email protected]

Benefits of Partnership Firm

The registered and un-registered Partnership firms are the two types of partnership firms. It is not obligatory to register a Partnership firm; however, it is preferable to record a Partnership firm due to the added benefits. Some of the essential advantages of registering partnership firm in Tripura are explained in detail here.

  • One of the most key advantages of partnership firms is that more than one person can able to invest and run that business.
  • Compared to LLP, partnership firms can be registered very quickly, as there is no need for getting DSC, DIN, and Name Approval.
  • Central Government (Ministry of Corporate Affairs) law governs the LLP registration while Partnership firm registration lays down the State Governments laws.

Know more about LLP Vs Partnership firm

Indian Partnership Act, 1932

As per the rules of the Indian Partnership Act of 1932, a firm can be registered at any time, not only at the time of formation, by eventually applying with the Department of Director of Industries & Commerce. Partnership Firm registration has to be done in the concerned State where the firm is situated or proposed to be located.  A minimum of 2 and a maximum of 19 members can form a partnership firm.

Before Registering the Partnership Firm

Before registering the partnership firm, the applicant has to verify that the proposed name of the partnership firm with an existing company name trademark or LLP name. If the partnership firm registered with a similar name, it will lead to legal hassles in the future. Hence, it’s very essential to do a name availability check and trademark search before registering the firm.

Do Company Name Availability Check

Acceptable Name for Firm

After finishing the name availability check and trademark search, you have to contemplate the following rules for selecting a partnership firm name.

  • The name of the partnership firm must not be too identical or similar to the name of an existing firm doing the related business.
    • If the names of firms are the same, it leads to indecision.
    • The reputation of the proposed firm may be injured if the firm could adopt an allied name.
  • As per Section 58(3) of Indian Partnership Act, 1932, the name of the partnership firm should not contain words like Crown, Emperor, Empire Empress or words which communicating or inferring the endorse, endorsement or support of Government.

Create a Partnership Deed

A partnership deed is a legal document which provides the details of the rights and obligations of the members of the partnership firm. According to the Indian Stamp Act, the partnership deed should be on a stamp paper while being registered.  The following characteristics are essential for a partnership deed.

  • Name and Address of the new firm, as well as all the partners
  • Date of Commencement of Business
  • Duration of Partnership
  • Nature of business to be carried on
  • Capital contribution from each partner
  • Profit sharing ratio among the partners

On the addition to the requirements as mentioned above, the partners may point out any extra clauses if they wish to include in the deed.  Some of such additional provisions are given below.

  • Preparing accounts and arranging for audit
  • Commissions, Salaries to partners
  • Partner’s Loan, Partner’s capital interest
  • Designating the partners with powers, obligations, and duties
  • Follow-up of specific rules in death and retirement cases

While registering the partnership firm, a partnership deed should also be filed with the concerned department. All partners should have a copy of the partnership deed.

Documents Required

Following documents need to be furnished for registering a partnership firm in Tripura.

  • Registered Partnership Deed
  • Up-to-date License, Approvals or Permits (as applicable)
  • Aadhaar, PAN Card, Voter ID of all the partners
  • Blank non-judicial stamp paper of requisite denomination purchased by the firm with blank semi papers. (2 Nos.)
  • Relevant document (Khaitan/parch)
  • Registered land lease deed to establish the address of the principal place of business or any other areas where farm carries on Business.

Applicable Fee

The fee should be paid only in the form of a demand draft drawn in favour of “Director, Directorate of Industries & Commerce, Government of Tripura” from any nationalised bank.

  • Fee for Registration – Rs.2
  • Fee for Inspection – Rs.5

Time Frame

Firm registration will be done within fifteen days from the date of submission of application.

Procedure to Register a Partnership Firm

Guidelines for registering partnership firms in Tripura are explained in the step-by-step procedure here.

Step 1: Provide the following details in the Partnership firm registration application.

  • Name of the Firm
  • Duration of the firm with date
  • Principal place of business of the partnership firm
  • Name of any other places where the firm carries on business
  • The year when each partner joined the firm
  • Name and permanent addresses of the partners
Registration of Partnership Firms Tripura

Note: Application must be signed by all partners of the firm or by their agents especially authorised in this behalf.

Step 2: The registration of a firm can be done at any time by submitting the duly filled application form along with all required documents and DD to the department Director of Industries & Commerce of the area in which the place of business of the firm is situated or proposed to be located.

Step 3: On submission of the application, a letter will be issued by the competent authority with seven working days intimating about any modification required in the application form or document to be submitted.

Note: The necessary modification has to be made by the applicant firm within the next seven days, failing which the application may be summarily rejected.

The date for inspection will be intimated by an Officer authorised by the Director of Industries & Commerce on his behalf on submission of the complete, correct application form with all the required documents.

Step 4: All the original documents have to be produced on a scheduled date for inspection.

Step 5: If the component authority is satisfied with the points stated in the partnership deed and application form, he/she will record an entry of the statement in a register called the Tripura Register of Firms and issue a Certificate of Registration.

Register of Firms

The Register of Firms maintained by the Director of Industries & Commerce department holds complete and up-to-date information about the registered firm. The Register of Firms is open to inspection by anyone on payment of the applicable fees. Any citizen interested in viewing the details of any partnership firm can request the concerned authority for the same, on payment of the fees, a copy of all aspects of with Firm registered with the Registrar will be given to the applicant.

All partnership firms need to apply for Registration with the Income Tax Department and have a PAN Card. After obtaining a PAN Card, the Partnership Firm would be required to open an Account in the name of the proposed Firm and operate all its operations through this Bank Account.