Introduction
In India, Partnership Firm is the most common form of business. The submissiveness requirements for setting up the partnership firms are lesser compared to a Limited Liability Partnership (LLP). It is formed by 2 or more people with the preparation of a partnership deed. In the partnership firm, all the partners equally share the profits and losses in the business.
Partnership Firm Registration in Gujarat
Section 4 of the Partnership Act, regulates the registration of a Partnership Firm. The Act states that registration of a Partnership Firm is not mandatory it depends upon the members to register their firm or not. It can be registered under the state’s Registrar of Firms (ROF) which enables the individual who runs the business to follow legal bindings. When a partnership firm is not registered it is not illegal but it would nullify to avail certain benefits by the Partnership Firm.
Partnership Deed
A partnership deed is a document that includes the rights and responsibilities of all the parties involved in a partnership firm or in a business. It regulates the conduct of business. It is also helpful in the disputes between the individual partners of the company and it is also beneficial for all the partners in a partnership firm or a business. Some details are necessary to present in a partnership deed, mentioned below:
Detail of all the partners in a firm
Duration of Partnership
Partnership Firm conducted the nature of the business
Each partner made the capital contribution
Profit and loss percentage shared with all the partners
Date of commencement of the Firm.
According to the Stamp Act, when adding, removing the partner which has to be formed in a stamp paper of a partnership deed. Every partner must possess a copy of this deed.
Documents Required for Partnership Firm Registration in Gujarat
To register a partnership firm some documents submit along with the application. They mentioned below:
Application for Partnership Registration in Form No. 1.
Partner stating an affidavit to show the intention to join the firm.
All the members signed the Partnership Deed and registered by the Sub-Registrar.
Passport size photographs.
Aadhaar Card.
Proof of the primary location of business of ownership or lease
Rental agreement of the property
Choose the Name of the Partnership Firm
In Partnership Firm, partners have the right to choose a unique and relevant name for their business or a Partnership Firm. It is usually the first step in registering a Partnership Firm in India. To ensure that the Partners choose their name does not infringe on any copyrights or trademarks registered earlier. After deciding on the Partnership Firm’s name the partners must get trademark it for avoiding to use the same name by a third party. There is a certain condition imposed while choosing the name of the firm. They are given the following:-
The name should not be identical or copied from an existing company’s name.
It should not be a similar name to any existing firm.
It does not contain any words like Crown, Empress, Emperor, etc., and also does not include the terms which signify that a government or a royal house is backing or endorsing the partnership.
Advantages of Partnership Firm Registration in Gujarat
1. Easy Formation:
It is not easy to form any Partnership Firm because it involved many legal formalities to start a Partnership Firm. The partners can initiate their operations when the Partnership Deed is ready.
2. No Statutory Audit:
It is not compulsory to register the audited financial reports with the registrar of the Firms. It means the Partnership Firm is not required to maintain the books of accounts audited except if its turnover exceeds prescribed limits.
3. Compliance and Regulations:
When compared with a company or LLP then the compliance requirements to run a Partnership business are considerably less.
4. Winding up:
A partnership Firm can easily wind up by entering into a dissolution deed.
5. Larger Resources:
When compared to a sole proprietorship then the members can prospective render more resources for business operations in a partnership firm and also give the quantum of people making contributions.
6. Better Management:
All the partners of the partnership firm manage all the business against a proprietorship firm where a single man is vested with the affairs of the firm.
7. Sharing of Risk:
Every partner carries the risks individually which in away curtails their burden in a partnership firm.
Application Procedure of Partnership Firm in Gujarat
They are given the following steps to register the Partnership Firm in Gujarat:
1. Firstly: Duly fill out the application form:
In a Partnership Firm, members should submit Form- 1 to the concerned authority.
2. Secondly: Attach the required documents :
To attach all the required documents along with the application form by the applicant.
3. Thirdly: Sign the application:
Partners must sign the application and attach all the documents and submit it to the Registrar of Firms of the State of Gujarat.
4. Fourthly: Issuing the Certificate:
After viewing the application, the registrar makes the required changes and then enters the firm in the ‘Registrar of Firm’ log. The then concerned authority will issue the Certificate of Registration in due course of time.
Conclusion
It concluded that Partnership Firm is formed by 2 or more people with the preparation of a partnership deed. In the partnership firm, all the partners equally share the profits and losses in the business. It can be registered under the state’s Registrar of Firms (ROF) which enables the individual who runs the business to follow legal bindings. When a partnership firm is not registered it is not illegal but it would nullify to avail certain benefits by the Partnership Firm.
eStartIndia will help you in Partnership Firm Registration from the comfort of your home.
Get a free consultation for Partnership Firm Registration with Our Top Rated Experts with simple Registration.
Author:
Leave a Comment
Previous Comments