The MCA recently announced the decriminalization of various Companies Act provisions in a communication. This is an effort to make doing business in the country even easier. These include requirements for annual returns to be filed, designated partners’ eligibility and appointment, partner change registration, and books of account maintenance, among other things.
A partnership firm is a type of business in which the partners agree to divide the company’s profits and losses in a predetermined way. Partnership company registration has gained popularity in recent years due to its benefits. Registration as a partnership firm is the best option for small and medium-sized businesses. In addition, partnership firm registration in Delhi is popular because it is simple to set up and requires few rules to be followed.
Partnership Firm Registering your company is the first step in making it a legal entity in India. There are numerous advantages to doing so, and doing so will protect you from future legal issues. The Partnership Act of 1932 governs registration of partnership firms. There are two types of partnership firms in India, according to the Act:
Partnerships that are not registered are known as unregistered partnerships. In India, the only requirement for forming a partnership is that the partnership deed be executed, so partners can choose not to register their company. However, partners will not have certain rights, as stated in Section 69 of the Act, making this extremely risky and unwise.
Disadvantages of Unregistered Partnership Firms
* Partners are unable to sue other partners;
* the firm is unable to sue to enforce a contractual or conferred right;
* the firm is unable to sue to enforce a right decreed by another court;
* the partners are unable to sue on behalf of a third party;
* the partners claim set-off in the event of a dispute with an external party.
Registration Fees for Partnership Firms
Although there are no statutory fees to register a Affidavit on 10 stamp paper stating the partner’s consent to sign a partnership deed. The court fee stamps on the application form are also worth 3 stamps.
The stamp duty that must be paid on the paper that the partnership deed is written on can range from 1% of the capital to rs 5000, whichever is less.
Similarly, the deed’s registration and documentation fee is determined by state law. Nonetheless, the majority of the time, it costs around 1000rs.
Documents Required
Additionally, the legal consultant will charge you professional fees for the drafting of your legal documents.
Attested proof of the partners’ identity and address, such as a PAN, passport, driving license, voter’s ID, or a true copy of the partnership deed, as well as attested proof of the registered office’s address, such as a sale deed, lease agreement, the most recent electricity, gas, water, telephone bill, or tax receipt, are all required for partnership firm registration in Delhi.
Additionally, an NOC from the owner must be submitted in the prescribed format on non-judicial stamp paper.
Any one of the following individuals must sign all of the aforementioned documents:
Magistrate of the First Class, Gazetted Officer, Notary Public, Chartered Accountant
Also know about: what is partnership deed
Register a Partnership Firm in Delhi: Step-by-step process:
Step 1: The members should choose a name, verify that it is available, and ensure that it complies with the law.
Step 2: The next step is for the members to cooperate in getting all of the required documents notarized and authenticated.
A basic piece of enrolling an organization firm in Delhi is drafting and notarising the Association deed.
Step 3: An attested copy of the notarized and registered partnership deed must be copied onto non-judicial stamp paper.
* Name and address of the partnership firm.
* Name and address of all partners.
* Nature of business and date of beginning of activities. In addition, the paper’s value must be between 1% of the introduced capital and 5000, whichever is less.
Step 4: The experts will then present all of the aforementioned documents to the relevant registrar. They will then submit an application for registration on your behalf along with any and all supporting documentation.
Step 5: Upon submission, you will be provided with an application ID that can be used as a reference in the future. A Certificate of Registration will be sent to you following verification.
Address of the Delhi Magistrate where your deed should be registered;
Band Gali, Shastri Nagar, New Delhi, Delhi, 110031
Advantages of a Partnership Firm Registration
Minimal compliance requirements Only need to file Form ITR-5 instead of annual returns with the RoC. Additionally, financial statements are
not made publicly available, giving them more privacy. Partners can deduct interest, salary, bonus, and commission paid to another partner.
Read more,
- How to Start Partnership Business in Chennai- Steps to Follow
- PAN Cards for Partnership Firm
- The dissolution of Partnership Firm everything you should know
