What are the Documents Required for Partnership Firm Registration

In India, the partnership firm is one of the most common business structures. To form a partnership, two or more individuals come together to establish a business and divide the profits among themselves in an agreed ratio. The business of partnership can be related to any relevant trade, occupation or profession. All the partnership firms in India are governed and regulated under the Indian Partnership Act of 1932. 

The partners create a partnership deed as a contract between them. This deed regulates the relationship between the partners and the partnership firm. In this article, we will discuss partnership firm registration and learn about the major documents required for partnership formation.

Documents Required for Partnership Firm Registration

There are some documents required for the formation of partnership firm, for defining the rights and responsibilities of partners, for fulfilling legal requirements and building trust among the partners. Let us get to know them in detail. 

1. Partnership Deed

A Partnership Deed is a legal document executed by partners at the time of partnership firm formation. Basically, it is an agreement between partners that sets out important terms and conditions pertaining to the firm. The deed serves as the partnership’s charter that sets out the rights and obligations of each and every partner. Writing everything down about the rules and the decisions to be taken will help avoid confusion and misunderstanding between partners in the future. 

The partnership deed normally contains information such as name of firm, details of partners, profit and loss sharing ratio, roles and responsibilities, decision making process, finance management, dispute resolution mechanism and partnership dissolution process. 

2. Proof of Registered Office Address

Communication with the partnership is made through the address of the firm’s registered office. For verification of the registered address, the partners may be asked to produce documents like rent agreement, NOC from the landlord and property tax receipts. These documents confirm ownership or legal occupation of the firm’s premises and confirm the legal requirements are met. 

3. PAN Card of Firm

A firm must have its own separate Permanent Account Number. This PAN card is distinct from PAN cards that partners possess. If the partners want to obtain a PAN for their firm, they must apply by filling out Form 49A. This can be done online by visiting the NSDL website. 

In case, an authorized partner signs the application using a digital signature certificate, it must be filed online. Otherwise, the application and documents must be sent to one of the PAN processing centers located in the country. 

4. Documents Required From Partners

The following documents belonging to partners are required:- 

• PAN Card:- All partners must have a PAN card, which shows the identity proof. If the partners do not have a PAN card, then they can apply for it by filling out Form 49A online on the NSDL website. The application can be filed online or offline. For offline mode, download a PAN application and submit it to the nearest PAN processing center with the required documents.
• Address Proof:- The partners are required to provide valid government-issued address proof. Acceptable documents include voter ID, driving license, Aadhaar card, passport or utility bills that are not more than 2 months old.
• Other Documents:- Other documents include recent passport size coloured photographs of all partners. An Aadhaar card is optional but may be requested for identity verification in some cases. 

5. GST Registration

GST registration may be required by the firm depending on the nature and turnover of the business. For obtaining GST registration online, a partnership firm needs to submit certain documents via GST portal. 

These documents include PAN number, address proof of the firm and identity and address proofs of the partners. The authorised signatory will sign the GST application either through a Digital Signature Certificate (DSC) or e-Aadhaar verification.

What is Partnership Firm Registration?

A partnership firm is a type of business structure registered under the Indian Partnership Act, 1932. It can be formed only if minimum of two partners are there. It is often an ideal structure for small and medium sized businesses, family businesses, professional services and businesses where two or more partners want to work together. 

Partners are personally responsible for the firm’s liabilities. A firm can either be registered or unregistered. Registration is totally a voluntary choice. Even then, many businesses prefer to register their firm because it improves credibility. To register a partnership firm, an application form must be submitted to Registrar of Firms along with required documents and fees. 

All the partners, or the authorised agents on their behalf, must sign this application. Once Registrar of Firms is satisfied that application and documents submitted are correct, a Certificate of Registration is issued. By following the partnership firm registration process, you can complete registration successfully and obtain the necessary certificate. 

Conclusion

A registration of partnership firm requires a lot of documents. Some documents are compulsory while some are required depending upon certain circumstances. These include the partnership deed, PAN cards and address proofs of all partners, passport size photographs of partners, proof of the registered office address and a NOC from the property owner (in case the office is on rented premises). These documents ensure the smooth completion of the partnership registration. GST registration may also be required by the firm in future if the annual turnover crosses the prescribed limit or if it carries out certain business activities. 

If you want assistance in the documentation of a partnership firm, you can reach out to Registrationkraft. We can help you with the application, paperwork and finally obtaining the partnership registration certificate from the Registrar of Firms.

Frequently Asked Questions (FAQs)

Q1. Why do you need an NOC from property owner during partnership registration? 

If the firm functions from a rented property, then a NOC from property owner is a requirement. This document is quite necessary as it confirms in writing that the owner has no objection to firm using property as its registered office address. This helps in smooth verification of address at the time of partnership registration process. 

Q2. Is a partnership firm’s PAN card different from PAN cards of its partners? 

Yes. A firm has its own separate PAN card. This document is different from PAN cards its partners possess. 

Q3. Is it voluntary to register a partnership firm?

Yes. Registering a firm is completely voluntary. While it offers several benefits, such as better credibility and easier enforcement of legal rights, it is not actually mandatory under the law. 

Q4. Do limited liability partnerships require a partnership deed?

No. The limited liability partnerships do not require a partnership deed. They require an LLP agreement instead.