Hi sir/madam, How much rupees stamp paper (Minimum amount of Non Judicial stamp paper) should buy to prepare partnership deed for apply new pan card for Partnership firm?
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This discussion clarifies the stamp paper requirements for preparing a partnership deed to apply for a new PAN card for a partnership firm. The advice given is to use a Rs 300 stamp paper for Coimbatore, Tamil Nadu. It also addresses the crucial difference between a notarised and a registered partnership deed, strongly recommending registration for legal standing and the ability to sue, while noting notarisation might suffice for short-term arrangements.
Actually, it should be registered, but notarized deed is also valid in most of the circumstances.
Indian Partnership Act, 1932 Section 18 states that a partner is an agent for doing the business of the firm and the partnership firm will not be treated as legal entity. Hence, a firm which has entered into notarized partnership deed have no legal status for any proceedings.
A notarized partnership firm cannot sue another party in case of any dispute. Hence it is suggested to Register a Partnership firm.
If however, there is uncertainty of the life of the partnership in the short run then it is recommended to not to register the partnership and start the work with Notarized partnership.