A partnership firm is a kind of business entity in which two or more persons are involved in running a busiess. Although the registration of the partnership firm is not mandatory it is advisoble to register a partnership before starting a partnership business in order to guard your interest in case of conflict.
In India the The Indian Partnership Act, 1932 governs the functioning of the partnership firms.
While there are no penalties in case of non registration of a partnership firm the following will be the consequences which can arise :
- None of the partners of the firm can file a suit against the partnership firm or any of the partners of the firm to enforce any right conferred by the Partnership Act.
- The partnership firm can not file a suit against any third party
- The partners or the firm cannot claim the set off in a dispute with any third party.
The registration of a partnership firm takes minimum one month time.
The application for the registration of the partnership firm along with the prescribed documents, information and fee is to be submitted to the Registrar of Firms and Societies of the concerned area where the registered office of the firm is to be situated.
On the successfull verification of the documents and information provided the Registrar of firms and societies shall Register the Partnership firm.
Following is the list of documents/information required for the registration of partnership firm in India:
- Name of the Partnership firm
- Photographs, PAN and address proof of all the partners
- Proof of registered office
- Objects of the partnership firm
- Profit/loss sharing ration amongs the partners
- Capital introduced
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