Partnership Firm

Three minimum requirements to constitute a Partnership, viz:

• There must be an agreement entered into orally or in writing by the persons who desire to form a Partnership,
• The object of the agreement must be to share the profits of business intended to be carried on by the Partnership, and
• The business must be carried on by all the partners or any of them acting for all of them.

A Partnership can be formed between:

(i) one or more individuals or

(ii) between an individual and a person representing a H.U.F. or

(iii) between an individual and other partner representing his firm, or between Limited Company or a Corporation and an Individual or Partnership firm, or

(iv) between two Partnership firms, or

(v) between a Limited Company or a Corporation and an individual or Partnership firm, or

(vi) between a Partnership firm and H.U.F., or

(vii) between members of HUF in their individual and independent capacity, and

(viii) between a HUF and a member of that HUF independently.

The following documents are required for the registration of a Partnership firm:

1. Statement in Form 1 with the prescribed fees

2. Notarized True copy of the Partnership Deed stating the following :

• The firm-name
• The nature of business of the firm
• The place or principal place of business of the firm
• The names of any other places where the firm carries on business
• The date when each partner joined the firm
• The names in full and permanent addresses of the partners
• The duration of the firm

3. Proof of ownership or rent/lease of the location of your business.(e.g. Electricity Bill/ Water Bill or Rent/Lease/Leave and Licence Agreement of Business Place)

4. Copy of PAN Card of partners

5. Copy of Aadhaar Card/ Voter identity card

The Statement must be signed by all the partners of the firm and must also be verified by affidavit in the prescribed manner.

• Partner Cannot sue firm: A partner in an unregistered partnership firm cannot sue the firm for enforcing any rights under the Indian Partnership Act, 1932.
• Cannot claim Setoff in a dispute with a third party.
• The firm cannot sue third parties whereas the third parties would be able to sue the firm irrespective of registration.