Partnership

BUSINESS REGISTRATION

Partnership

We register your Partnership in Chennai,Coimbatore, Madurai, Erode, Trichy, Tirupur, Hyderabad, Bangalore and Cochin.

Features of Partnership firm

Contract:

The contract is the most important one in a partnership firm. Partnership only can be identified or recognised by a contract. For e.g. if a person died who was one of the partner in the firm; his son can claim the shares from the firm but he cannot become a partner in that firm unless he signed in a contract prior with the other persons concerned.

Similarly, a person from the Hindu Undivided Family carrying a business only by status and not by any legal agreement would not be considered as a partner. Thus, it clearly proves that partnership contract is the basic foundation for a firm.

Number of Partners:

As per Indian Partnership act 1932, it doesn’t mention anything about the maximum number of partners. But, in Companies Act, at least two members needed to be in partnership firm. In a banking sector business, the limitations in the number of partners are ten whereas in non-banking business, the maximum no of partners can be twenty. More than the limit will be considered as illegal.

Carrying on a business:

In a widest sense, the business includes the small trade, occupation or a profession. The main thing is to carrying on the business activities being as a partner by the legal agreement.

When one or more persons want to share the income of the property among them but no partnership, they will not be considered as a partner since they haven’t carried the business activities.

Mutual Agency:

Business should be carried by all the partners in a firm or else one or two partners can act on behalf of others. Mutual agency is a term which makes the partners to act both the agent and a principal; it enables all the partners to carry out their business on behalf of other partners.

Utmost Good Faith and Honesty:

This kind of concept purely depends and begins with the reliability, honesty and a faith amongst the partners.

Unlimited Liability:

If the asset of the partnership firm doesn’t meet the requirements and obligations for enhancing the firm, the private asset of the partner could be used for this purpose.

Restrictions on the transferability of shares:

If any partner need to issue or transfer the shares from the firm to the outsiders, it would be restricted if he didn’t get the consent from the other partners.

Registration Procedure for the Partnership Firm:

It can be registered whether at the time of forming the firm or else afterwards with the Registrar of Companies (ROC) by submitting all the required documents.

STEP1 :

Copy of the Partnership Deed:

Clauses to be included in the partnership deed:

  • Firm name
  • Names of the partners along with addresses.
  • Nature of business should be mentioned.
  • The capital investment amount in total and the contribution from each and every partner.
  • The extents to which the partners can take part the management activities.
  • Allowing the partners to withdraw an amount only to a certain range; that needs to be mentioned.
  • Sharing the profit ratio details.
  • The salary amount or the commission to the partner based on the service they rendered to the business.
  • Dividing the duties and the powers to the partners.
  • Rate of interest will be allowed on the capital amount and also the rate of interest will be charged based on the withdrawal amount.
  • The process of evaluating goodwill of a partner at the time of admitting a new partner or else at the retirement or death of a partner.
  • The book of maintaining and auditing the accounts.
  • Procedure of the dissolution of the firm and the account settlement.