Partnership Firm Registration In Chennai

Existence of an agreement

An agreement between two or more people to conduct business results in a partnership. This pact may be expressed verbally or in writing. According to Section 5 of the Partnership Act of 1932, "the relation of partnership originates from contract and not from status."

Existence of business

A partnership is established to operate a business. According to the Partnership Act of 1932 [Section 2(6)], every trade, occupation, and profession is considered a "Business." Of course, doing business must be legal.

Sharing of profits

Earning and sharing profits should be the goal of any collaboration. In the absence of a written agreement, the partner should distribute profits (and losses) equally.

Contractual Relation

A contract for managing the firm is signed by the person joining the partnership. The Partnership Act states that a partnership relationship develops out of a contract rather than a status. Contracts can be made orally or in writing, although written agreements are more common because they make it easier to resolve disagreements down the road.

Nature of liability

Partners are held to the same standards of responsibility as a lone entrepreneur. Partners are both individually and jointly liable. In cases when the firm's assets are insufficient, the creditors have the authority to collect the firm's debts from one or all of the partners' personal property.

Registration of firm

According to the Act, registering a partnership firm is not required. The "partnership deed" is the sole legal document—or simply verbal agreement among partners—necessary to formally establish a partnership.

Non-transferability of interest

Without the approval of the other partners, no partner may assign or transfer his or her ownership interest to another person in order to add that person as a partner in the company.

Existence of Business

Partnerships are only possible in certain types of businesses. Any trade, profession, or occupation is included in the definition of "business." Business is defined as all manufacturing, distribution, and service-related activities carried out with the intention of making a profit. We do not refer to the work as a business or a partnership if it is associated with social service.

Unlimited Liability

The partners in a firm have limitless liability, just like a solo proprietor does. In the event of an obligation, not only the assets of the partnership but also the private property of the partners may be used to satisfy the firm's debts to third parties. Any partner or every partner may be held liable for the debts owed by the creditors. Both the couples individually and jointly bear responsibility.

Restriction and Transfer of Share

Without the other partners' approval, no partner may sell or transfer his or her share to a third party. Any partner may file a notice of dissolution of the firm if he or she decides they do not want to continue as a partnership.

• Simple Formation
• Operational Flexibility
• A higher credit rating
• Balanced Evaluation
• Specialisation
• The Economy of Management
• Conservative Leadership
• Keeping Things Secret
• Personal interactions with the workforce and clients
• Risk mitigation

Partnership Deed

Even though a partnership deed can be spoken, it is usually written to prevent future disputes. The partners must all sign the partnership deed, which is written on judicial stamp paper that is obtained from the appropriate State Registrar Office. It outlines the partners' and the company's obligations.

Documents of Partners

• PAN card of partners – As identification, each partner must provide their PAN number.
 
• Address proof provided – by partners may be in the form of an Aadhar card, driver's licence, passport, or voter identification card. Name and other information on the address proof must match that on the PAN card.

Documents of Firm

• PAN card of firm– Partners need to apply for PAN of the firm. A PAN application must be submitted using Form 49A.
• If the authorised partner signs the application using a digital signing certificate, it can be submitted online. Otherwise, the application and required documentation must be delivered to one of the country's PAN processing centres located closest to you.
• A rent agreement and one utility bill (such as an energy bill, water bill, property tax bill, gas receipt, etc.) must be presented as proof of the firm's address if the registered office location is rented. Additionally, the landlord's NOC will be provided.
• A utility bill with the owner's name must be presented if the registered office location is its own. Additionally, the owner's NOC (as stated on the utility bill) must be submitted.
• Additional Documents for Registration If partners want to register their partnership firm, they must give the Registrar of Partnerships a copy of the partnership deed, as well as proofs of the partners' identification and addresses. It must also be accompanied by an affidavit attesting to the accuracy of all the information included in the documents and deed.
• GST Registration A firm must submit its PAN number, address documentation, and partner identification and address documentation in order to register for GST. A digital signature certificate or E-Aadhar verification would be used by the authorised signatory to sign the application.
• Current Bank Account