Registration of firm

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Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2013 Whether PAN Card is must for Registration of Firm?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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12 August 2013 the ans is yes and it should be in name of firm.

Ajay Mishra

Ajay Mishra (Expert)
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12 August 2013 Hi

Generally not, PAN is required after registration of partnership firm, because after registration it become eligible to take PAN.

What is Partnership Firm in India?

A partnership is a business entity in which two or more persons agree to share the profits of a business carried on by all or any of them acting for all. Earnings are distributed according to the partnership agreement.

What is Partnership Agreement?

The agreement between the partners put down in writing forms the “Partnership Deed”. It is a document containing the various aspects agreed upon by the partners. Partnership deed is drawn to avoid misunderstanding and undesirable litigation.

When Partnership Agreement is required to be made?

There is no such fixed due date within which partnership agreement is required to be made. But, it is always advisable to prepare a “partnership deed” for forming a partnership firm.

What are the basic contents of a Partnership Agreement?

Partnership agreement must contain following-

• Name and address of the partners and the firm

• Nature and place of business

• Duration of business, if any

• Amount of capital contribution by each partner

• Profit or loss sharing ratio

• Duties and powers of each partner

• Salary or commission payable to the partners, if any

• Interest on Capital to the partners, if any; and

• Any other terms and conditions to run the business

Whether it is mandatory to register a partnership firm?

It is not necessary to register partnership firm with the Government. However, if you do not register your partnership firm with the registrar of firms and societies, any disputes between partners or others cannot be enforced in a court of law.

What are the legal benefits of registering Partnership Firm?

Registration of Partnership Firm safeguards the legitimate rights and obligations of parties in case of disputes and disagreements. Registered firm can take any action in a court of law against any other parties for settlement of claims and the rights of partners can be enforced in the court of law.

Is there a limit on the number of partners in a partnership firm?

In partnership the maximum number of partners is twenty and in a banking business, the maximum number is ten. If the number of members exceeds this maximum limit, then that business is not called as a partnership business legally and it has to be registered as a company.

What is the procedure to register a partnership firm?

To register a partnership firm, at the very outset a partnership agreement has to be prepared then a statement in prescribed form giving details about the firms duly signed and verified by all the partners along with a partnership deed , supporting documents and registration fees is required to be submitted to the register of firms of a locality. The statement submitted to the registrar of the firms should contain all the information of the firm.

On receipt of the signed statement and requisite fees the registrar enter all these particulars in its register and get the firm registered.

What are the information and documents required to register a partnership firm?

A list of the information and documents required is enumerated below:

• Photograph and photocopy of an Identity Proof, address proof of each of the partners,

• Address Proof of Firm

• Name of the firm

• Nature of business

• Bank account operation (single / joint)

• Profit / loss sharing ratio of each partner.

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2013 Thank you for giving Answer, Sir.

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