What is Registration of Firm in Partnership Act?

When multiple partners tie up together and collaborate on the same idea for operating and functioning a Firm is referred to as a Partnership Firm.

The Indian Partnership Act (1932) (referred to as Act hereafter), defines partnership as “the relation between two or more persons who have agreed to share the profits of a business carried on by all or any of them acting for all.

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The Indian Partnership Act,1932

The Indian Partnership Act was enacted in 1932 and it came into force on the 1st day of October,1932. This partnership firm is governed by the rules and regulations of the Indian Partnership Act, 1932. The Act enables the Individual to have official recognition and to perform basic rights of the firm.

Under the Indian Partnership Act, 1932 the partnership firms works under a contract as signed between the partners. The Indian Partnership Act, 1932 governs and regulates partnership firms in India except Jammu and Kashmir.

Partnership Firm Registration

The process of Partnership Firm Registration is running a firm with multiple partners while dealing with all the complexities of each partner. It is important to Register your Partnership Firm to gain formal Existence and access benefits

Partnership Firm Registration Falls under the Indian Partnership Act, 1932, which governs and regulates partnership firms in India.

Checklist for Partnership Firm Registration under the Partnership Act

The following are the requirements for the Registration process of Partnership Firm:

• Minimum 2 or more partners should be involved.
• Agreement between the partners.
• Partnership Deed.
• Valid ID.

What is the Process of Registration of Partnership Firm

The Registration process can be understood by 4 simple steps that are:

Step 1: Application for Partnership Registration

Step 2: Selecting the name of the Partnership Firm

Step 3: Legalizing the Partnership Deed

Step 4: Issuance of Partnership Certificate

Necessary Documents Involved in the Partnership Firm Registration Firm

The following documents are required in the process of Registration:

• A photocopy of a Partnership Deed with a stamp on it.
• Application Form no.1.
• Registered document of the Property.
• Rent Agreement.
• Affidavit/ NOC.
• Passport.
• PAN card.
• Voter ID.

Importance of Registration of Partnership Firm under the Indian Partnership Act,1932

One can gain various benefits after Completing the Partnership Firm Registration process that are as follows:

1. Legal recognition.
2. Right to sue a third Party.
3. Mutual Agreement.
4. Improves Credibility.

Conclusion

Under the Indian Partnership Act 1932, when a firm does not have a separate legal entity it is not compulsory to register itself as a partnership. The firm’s registration can be done at the time of its formation or incorporation or during the continuance of the partnership business. 

The Registration of Partnership Firm is optional and not mandatory under the Indian Partnership Act, of 1932. But one can gain various benefits such as Legal Recognition, the Right to take action etc.

You can complete the process of Partnership Firm Registration problem-free at Professional Utilities with the Registration fee of ₹11999/-.

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Is it Important to Register a Partnership Firm Under the Indian Partnership Act, 1932?

Under the Indian Partnership Act, 1932, it is not mandatory to register but one can obtain various benefits after Registering.

What is the Indian Partnership Act, 1932?

It is an Act to define and amend the law relating to the Partnership.

What is the process of Partnership Firm Registration?

Application for Partnership Registration > Selecting the name of the Partnership Firm > Legalizing the Partnership Deed>Issuance of Partnership Certificate.

What is the fee required in the Partnership Firm Registration Process?

The fee is ₹11999/- for the Registration Process at Professional Utilities. But the price may vary from state to state.

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