” is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
Persons who have entered into partnership with one another are called individually “partners” and collectively “a firm“, and the name under which their business is carried on is called the “firm-name”.]
— section 4 Partnership Act, 1932
Partnerships in India are governed under the Indian partnership act, 1932. It extends to whole India except the state of J&K. Partnerships are registered with ROC. Partnerships are not required to register compulsorily, partnership registration is optional in India. But it is advised to register a partnership because it is safer and beneficial. Why you should register partnership with the ROC.
Features of partnership
Mode of creation : A partnership is created by an agreement between the partners. Its registration under the Partnership act is not compulsory.
Separate legal entity : A partnership firm has no separate legal existence. The partners and the firm are one and same.
Member’s liability : The liability of the members is joint and unlimited. This is not in case of LLP registration.
Partners : The number of members in partnership cannot exceed 50, not applicable to LLP in India.
Perpetual succession : There is no perpetual succession in partnership unless provided for in deed.
Share transfer : The shares are not freely transferable, consent of all other partners is required.
Members agency : Every partner is an agent of the firm and other partners.
Powers : The partners are free to do anything that they have agreed to with mutual consent.
Management : The partners are entitled to take part in management of the firm unless a partner is not a sleeping partner.
Audit : A partnership firm is not liable to audit its accounts mandatory.
Dissolution : Dissolution of a partnership firm can be done with the consent of all the partners anytime.
A partnership firm can be registered with its formation or later. To register you need to file an application to the ROC office in your business area.
• Verification and signature of all the partners is required
• Attach the following documents and pay the prescribed fees
– Registration application in Form-I
– Duly filled affidavit specimen
– Certified partnership deed copy
– Property papers or rental/lease agreement of the business location.
• The partnership deed formed must have the following information in it :
– Name of the firm
– Business place location(s)
– Date of partnership formation
– Complete name and permanent address of partners.
– Time period of the partnership firm,if any.
After application is filed the ROC will go through it and once it is satisfied that compliance are met then it will issue COI and enter the company’s name in the register. Once you get the COI, partnership registration process is over.