The primary assumption of knowing the statutory provisions relating to partnership is obtained mostly from knowledge of the Indian Partnership Act of 1932. This was one of the first precedents established in Indian statute history, evaluating and analysing the important junctures related with the partnership process in India. However, this is essentially a legacy from our colonial past, and it is undeniably authentic. The basic concept of partnership as an act of mutual trust has not been formalized.
The Indian Partnership Act of 1932 governs partnership firms in India. While it is not required to register one’s partnership firm because there are no penalties for not doing so, it is recommended because an unregistered firm is denied certain rights.
PROCEDURE FOR REGISTRATION
Sections 58 and 59 deal with the process of registering a business. The first step in the process of registering or incorporating a partnership firm is to submit Form No. 1 of the application filing procedure. According to section 58, it must provide the following information:
The company’s name.
The partners’ full names and permanent residence addresses.
The duration of the company.
When each partner effuses to the firm, this is known as the business date.
The firm’s primary location for conducting business.
The names of any other locations where the company performs its functions.
This agreement must be signed by all associate partners, or by their respective representatives who have been given power to act on their behalf.
Second, all partners must have a witness, who must be an Advocate, Gazetted Officer, Vakil, or Magistrate of Registered Accountant, sign their signature application form or have their approved representatives sign it on their behalf. If one of the partners refuses to sign the application form, registration will be delayed until that partner’s name is dribbled.
The above-mentioned application, along with the required fees, must be addressed to the Registrar at the above-mentioned location. States are allowed to create their own regulations on the fee structure for partnership registration or incorporation under section 71 of the Indian Partnership Act. Schedule I of the Indian Partnership Act, on the other hand, specifies the maximum or maximum prescribed fees that states may levy. The maximum registration fees for a statement under section 58, according to Schedule I, are Rs.525.
A partnership is said to be registered when a registrar is satisfied with the fidelity of an application filed in accordance with Section 58 and an entry of statement in the Register of Firms is recorded, as specified in Section 59.
A registration certificate signed by the Registrar is a written proof of registration or incorporation for that matter, according to Rule 9 of the Indian Partnership Act.
NO SEPARATE REGISTRATION NECESSARY
The Kerela High Court ruled that no separate registration is necessary in case of reconstitution of the firm. What is required is only an intimation to the Registrar of Firms about reconstitution/change as provided under Section 60 to 67 of the Partnership Act, 1932 .
DISSOLUTION OF PARTNERSHIP DUE TO RETIREMENT OF PARTNER
The retiring partner disputed signing the letter of retirement and the dissolution deed, and he sought to have the alterations made by the Registrar on the basis of the dissolution document quashed. The retired partner, on the other hand, was alleged to have admitted his signatures before the Arbitrator, therefore the case was still pending. The petitioner was not entitled to the writ requested for since the petition concerns hotly disputed points of fact, which are now being adjudicated.
If a business remains unregistered, it and its partners will face the penalties outlined in Section 69. If the firm is registered but some partners are not, for example, because they join the firm’s registration, the unregistered partners will be subject to the disabilities set forth in Section 69(1). (2).
A partnership firm can be given any name as long as it meets the following criteria:
The name shouldn’t be too similar or identical to another company in the same industry. It also shouldn’t contain words like emperor, crown, empress, empire, or any other phrases that imply official authorization or support.
BUSINESS NAME OF THE COMPANY
Alteration of particulars
Whenever a change or correction is made to any of the foregoing particulars, it should be reported to the Registrar of Firms, who will make a satisfactory change in the record. The change to be rendered is sent in a pre-determined format with pre-determined fees. The following changes or adjustments must be sent to the Registrar:
1. Any change in the company’s name.
2. Any changes to the primary location of commercial transactions. A change in name or the primary site of business transaction nearly always necessitates a new registration. These changes should be provided in a pre-determined format, including signatures from all partners.
3. When the firm’s structure changes, such as when an existing partner retires or a new partner is added.
4. Any change in a partner’s name or his residential/official address.
5. When a minor partner reaches the age of maturity, he is free to choose whether or not to become a partner.
6. When the company is forced to dissolve.
DOCUMENTS FOR REGISTRATION OF PARTERNERSHIP
The following documents must be presented to the Registrar in order for a Partnership Firm to be registered:
1. Application for Partnership Firm Registration (Form 1)
2. Copies of the Partnership Deed that have been certified as originals.
3. Affidavit sample confirming that all data in the partnership deed and paperwork are correct.
4. The partners’ PAN card and proof of address.
5. Evidence of the firm’s principal place of operation (ownership paperwork or a rental/lease agreement).
If the documents satisfy the registrar, the firm will be entered into the Register of Firms and a Certificate of Registration will be issued.
The Register of Firms keeps up-to-date information on all businesses and can be read by anybody for a price.
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