The partnership firm is a business structure that is mostly used in India. To start a partnership firm, a minimum of two individuals is required. 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 have any type such as trade, occupation, or profession.
The Indian Partnership Act, of 1932 handles the laws governing and regulating partnership firms in India. The partners create a partnership deed as a contract between them. This partnership deed regulates the relationship between the partners and the partnership firm. In the article, the documents are required for partnership formation.
What is Partnership Firm Registration?
To start a partnership firm, an application form must be submitted to the Registrar of Firms with the fees. The application must have the signatures of all the partners or their agents. Once the Registrar of Firms is satisfied with the correctness of the application, you will be issued a Certificate of Registration. Follow the partnership firm registration process, to get the license.
Legal Document Required for GST Registration
To form a partnership firm, a legal document is required for several reasons such as establishing a partnership firm. Other reasons are that it helps in defining the rights and responsibilities, protects the individual’s interest, fulfils the legal requirements, and builds trust among partners. This legal document is a partnership deed. Let’s check what it means.
Partnership Deed
It is a legal document required when the partnership is formed, a legal document is created by the partners as a contract for multiple decisions in the firm. This deed acts as a roadmap for the partnership, outlining the rights, responsibilities, and expectations of each partner. Having all the rules in writing, and a partnership deed helps to avoid any confusion or misunderstandings in the future.
The partnership deed usually covers the name of the partnership firm, details of the partners, profit and loss sharing ratio, roles and responsibilities, decision-making process, management of finances, mechanism for dispute resolution, and the process of partnership dissolution.
Document of Firm’s Registered Premises
The partnership firm’s address on the premises serves as a way of official communication. However, the required documents are rent agreements, NOC from the landlord, and property tax receipts. This also ensures compliance with legal regulations.
PAN Card of the Firm
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 authorised partner signs the application using a digital signature certificate, it must file online. Otherwise, the application and documents must be sent to one of the PAN processing centres located in the country.
Address Proof of the Firm
If a place of office is registered, then the rent agreement must to submitted along with one utility bill. The required documents can be an electricity bill, water bill, property tax bill, gas receipt, etc. However, a NOC from the landlord needs to be submitted. In the case of owning a registered office place, then submit a utility bill that mentions the name of the owner (partner). Also, a NOC from the owner has to be submitted.
NOC From the Property Owner
The partnership firm needs a registered address where the official documents and communications can delivered. If the firm operates from a leased property, then an NOC as a formal confirmation from the owner is required that they have no objection to the firm using the property as a registered address. So, for the smooth validation of the address and the administrative proceeding for the partnership is required.
Documents of Partners
- 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 centre 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 required are a Colour photo, and an Aadhaar card is optional.
Additional Documents
To register a partnership firm, the partners are required to provide the partnership deed, along with their respective ID and address proofs, to the Registrar of Firms. However, an affidavit is also necessary to confirm that all the details mentioned in the deed and documents are accurate. Other than this, a GST registration is also required for
GST Registration
For obtaining a GST registration, a firm needs to submit a PAN number, address proof and identity and address proofs of the partners. An authorised signatory will sign the application either using a digital signature certificate or E-Aadhaar verification.
Conclusion
The process of registering a partnership firm includes multiple legal steps. However, with the right documents and tools, you can obtain the certificate of partnership smoothly. Before filing the documents, make sure the documents are accurate and complete. Incomplete or inaccurate documents can lead to complications in the process. So, if you want assistance in the documentation of a partnership firm, then reach out to an expert. That can help you with the application, paperwork, and finally obtaining the license.