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Registration Of Partnership Firm

According to the partnership act, 1932 the partnership deed is the only one document which is the proof of your partnership.

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Registration Of Partnership Firm

Registration Of Partnership Firm

Partnership means the agreement between two or more persons to carry out legal business and to share their profit and loss among each other.

There are two types of partnership :
  • Registered
  • Unregistered

According to the partnership act, 1932 the partnership deed is the only one document which is the proof of your partnership. You need to finalize and execute your partnership deed to make your business and partnership registered even though court haven’t said that you have to make your partnership registered but it will be beneficial for you to make it registered. There are few disadvantages of unregistered partnership:

  • Partner of unregistered firm cannot file any kind of case against the firm or any partner in any court for its enforcements as the firm is not registered.
  • The partners of unregistered firm cannot claim the setoff if any disputes occur with the third party.
  • Unless the firm is registered, no case should be filed for the enforcement of the rights against the third party by the court.
  • Therefore, you should make your firm registered.
Documents Needed :-
  • Registration form of incorporation of the company
  • Identity proof of partners(any 2 from mentioned below)
    • Cards:
      • PAN card
      • Aadhar card
    • Passport
    • Driving license
    • Voter id card
  • Certified true copy of partnership deed
  • Proof of principle place of business
  • If partner owns the place the place, sale deed is needed
  • If the premises are rented, rent agreement copy is needed
  • Latest electricity bill or water bill or property tax receipt
To Register LLP The Following Documents Are Needed:
  • Pan car of partners
  • Id proof of partners
  • Passport size photographs of partners
  • Address proof of partners
  • Rental agreement of the proposed registered office of the LLP or utility bill
  • The no objection certificate from the landlord
Advantages of partnership firm :
  • Case Filing Against Third Party : 
    • The partners of the registered firm can file the case against the third party for the resolution of the disputes aroused among them. However, the third party cannot suit against the partnership firm because of its registered status.
  • Power of Filing Suit Against The Co-Partners : 
    • Any kind of disputes can arise in the partnership firm within the partners; to resolve all these kinds of disputes the best way is to get it resolved by the court. The partners of unregistered firm cannot sue the other partner as they are not registered and cannot ask for the enforcement of clauses mentioned in the partnership deed. To enforce those clauses which are mentioned in partnership deed they must need to register their partnership firm.
  • Set-Off Claiming :
    • Partners get the power to claim set-off when they got their partnership registered. If any third-party suits against the partnership firm then firm can claim set-off as it is registered. Unless it is registered you cannot do the same.
  • More Credibility : 
    • As we compare the unregistered partnership firm with the registered one then we can say that the registered one enjoys the higher credibility in against of the unregistered one. But both the firms i.e. registered and unregistered are legal under the Indian partnership act, 1932.
  • Entity Conversion :
    • A registered partnership firm can be converted into the private company or LLP but unregistered partnership cannot.