Partnership firms in India are governed by the Partnership Act, 1932. Section 4 of the Act defines Partnership as – “An agreement between persons who have agreed to share profits of the business carried on by all or any one of them acting for all.”
Besides sole proprietorship Partnership Firm is another popular forms of a business organization in India, where two or more people come together to form a business and divide the profits thereof in an agreed ratio. Among all the business entities that are present in India, this is the sort of firm that is easiest to start. The only requirement for the incorporation process for this firm is that the need of a partnership deed. With this requirement, it can be incorporated and start within the same day. A Partnership is easy to form, and the compliance is minimal as compared to companies.
You can register a Partnership firm just by following the steps mentioned below:
- Create a Partnership Deed.
- This Partnership Deed printed on Stamp paper of specific value and gets it registered.
- Apply PAN of Partnership Firm with support of Partnership Deed.
A partnership firm can be registered under Section 58 of the Indian Partnership Act at any time, even subsequent to the formation. The registration of a partnership firm is done through the Registrar of Firm in which the partnership firm is situated. When the Registrar of Firms is satisfied that the provisions of Section 58 are complied with, a record of entry of the statement is made in the Register of Firms and Certificate of Registration is issued.
Documents Required for Registration of Partnership Firm:
A) As identity and address proof of the Partners, any of the following two documents can be submitted:
- PAN Card
- Passport
- Driving License
- Aadhar Card
- Voters ID
B) Proof of the principal place of business can be established by submitting the following documents:
- Sale deed in case one of the Partner owns the place of business
- Rental agreement copy if the premises are rented
- Copy of latest electricity bill or water bill or property tax receipt
