Individuals who have entered into a partnership with one another to carry out a business are called partners. Collectively with the firm is called a partnership firm. Finally, the name by which the business is run is called the name of the firm. Phoenix tax consultant in Chennai says that registering the firm under the Partnership Act is not mandatory for setting up the business. But it is advisable to get your business registered at the Registrar of Firms or at the Department of Industries of the Town/City where you are planning to set up the business
Definition of Partnership firm registration
Partnership firms in India are administered by the Partnership Act, 1932. Segment 4 of the Act characterizes Partnership as – “An agreement between people who have consented to share the profits of the business carried on by all or any one of them representing all.”
The partnership firm registration is the most well-known type of business structure in Chennai which is generally great among medium-sized organizations. A partnership firm is made by at least two individuals who meet up to join their assets for common benefits by sharing profit, and loss in a prescribed proportion. Anyway partnership firm registration isn’t obligatory in India however getting it enlisted gives the lawful presence to it and makes it simpler to convert it later into different entities like LLP, Company, and so forth partnership firm and Partnership Firm Registration in Chennai are being discussed hereafter.
Documents required to make a partnership firm registration in Chennai
To get your business registered under partnership firm registration in Tambaram, Chennai the following documents are needed to be submitted to the registrar for registration
- Partnership firm registration application with prescribed fee
- Original copy of partnership deed – certified
- PAN of the partnership firm
- ID proof, and address proof of all partners
- Copy of Aadhar Card/ Voter ID card
- a statement signed by all the partners of the firm and must also be verified by affidavit in the prescribed manner
Process of Partnership firm registration in Chennai
The Partnership firm registration in Tambaram, Chennai can be done with the help of one of the city’s best tax consultant -Phoenix tax. However, you can either choose to register under a partnership firm or not for setting up a business. But according to a phoenixtax tax consultant in Chennai, it is good to get your business registered under a partnership firm as you can avail of many benefits under this criteria.
The process of Partnership firm registration in Tambaram, Chennai is as follows:
- Registration application: An application (Form no: 1) along with the form required fee, and a true copy of the partnership deed are compulsorily sent to the registrar. This application is filed with the registrar of firms of the area in which the business is located. The applications will outline the following information:
- Firm name
- Nature of the business
- Place of the business
- Names of other places where the business is being undertaken
- Date of joining of all the partners
- Name, and address of the partners
- Duration of the firm
Finally, the application of registration should be signed by all the partners or agents who are authorized to do so on their behalf. Also, the application of registration must be sent to the registrar within a year from the date of formation of the firm.
- Verification of application: The application signed by all the partners or agents must be verified s suggested under the Act.
- Fee for partnership firm registration: the State government is free to make rules in regards to the fees to be given to the Registrar alongside different reports for enlistment, according to section 71 of the act.
- Documents to be attached with the application of registration: to get your business registered under partnership firm registration in Tambaram, Chennai the following documents are along with the prescribed fee is to be submitted to the registrar.
- Form no:1 application of registration
- Duly filed affidavit
- Certified copy of partnership deed. Make sure either the deed is on a stamp paper as per the Indian Stamp Act or on a stamp paper that is applicable in the state in which the deed is implemented.
- Rental/lease agreement of the place of business.
- Naming the partnership firm: The name of the partnership firm must not resemble the name or imitate the entity that is already public. As per section 58(3) of the Indian Partnership Act, A partnership firm should not contain the words such as – Crown, Emperor, Empire, Empress, and Imperial, King, Queen, Royal and the other words that have a similar meaning as sanction or approval by the government.
Further, if any f the partner isn’t happy with the request for the Registrar concerning the firm name, he may appeal the individual approved by the State Government for this sake. This allure should be made within 30 days from the date of correspondence of such a request and on the requisite of the registration fee.
On receiving the appeal the authorized officer will make a decision regarding this.
- Entry of statement in the register of forms: The registrar will make an entry of the statement in a register which is called the register of forms and files the statement according to section 59 of the Act. The date on which the Registrar records and documents the Statement is considered as the date of registration of the Partnership firm.
- Apply for a PAN card: Once the registration of your firm under partnership firm registration is complete it is mandatory to apply for registration with the Income Tax Department and obtain a PAN Card.
- Open a Bank account: The partnership firm should open a current account for the sake of the firm subsequent to getting the PAN Card. This is done to undertake every one of the operations through the current account of the firm.
Types of Partnership firm registration
There are two types of registration undertaken by Phoenix tax consultants for partnership firm registration in Tambaram Chennai
Registered: partnership firms that are registered under Registrar of Firm having the purview according to the state where the firm is enlisted. The firm that is enrolled gets the legitimate status and thus, gets lawfully perceived.
Unregistered: Unregistered firms get set up by the simple formation of partnership deeds. Unregistered firms are controlled and represented according to the proviso of the deed, and the rights and the obligations of accomplices are defined according to the deed.
Benefits of partnership firm registration
Following are the benefits your firm can avail when registered under partnership firm registration in Tambarm, Chennai.
- A partnership firm registration is easy to start, and manage
- Only fewer formalities required for processing
- Registration cost is less compared to a company
- Having your business registered under a partnership firm is like a corporate body having its existence other than its partners
- A Partnership firm can be started with any amount of minimum capital
- A partnership firm is directed and established by a simple form of a partnership deed.
- A partnership firm can be set up to seek the business of any nature or industry
- The partners should share the benefits to a foreordained extent and simultaneously consent to bear the losses
- Business can be attempted by all partners regardless of whether one partner’s deals on behalf of other partners
- Partners are personally obligated for the losses or liabilities brought about in the business, i.e., their resources can be utilized to settle the losses.
- After receipt of assent of each and every partner that no one but Partners can transfer the offers
- A partnership firm doesn’t have a fixed term and can be proceeded for as long as the partner’s wishes. In any case, on account of two partner firms, on the off chance that someone passes away, fails, or resigns the partnership will end.
Looking for partnership firm registration in Chennai? We offer the best services in Partnership firm registration in Tambaram, Chennai at an affordable cost within 7 working days at your doorstep. At Phoenix tax, we provide your partnership agreement drafted by our partnership registration consultants considering your nature of the business, preference of bank account operation, profit sharing ratio, and monthly remuneration. All you have to do is provide us with all the required details for partnership firm registration for hassle-free processing.