In India, partnerships and proprietorships are the most popular forms of business firms. They are easy to set-up and require fewer statutory compliance obligations than LLPs or corporations, since they are easy to set-up and have fewer statutory compliance requirements. This article discusses how to register a Mizoram partnership firm.
Statute of Partnerships
The Indian Partnership Act of 1932 governs partnership firms in India. Not all firms are required to register. Partners are responsible for deciding whether the firm should be registered. As a result, firms that do not register face no penalties.
A partnership is an agreement between people whereby profits and losses are shared by the members of the association as a result of their actions. Partners are the members of an association who have agreed to work together.
When registering a company, you must know the following information:
- The firm’s name
- Firm’s duration
- Location of the company’s principal office
- Locations of other businesses
- Detailed information about each partner
- Dates of partnership joining
- Ratio of profit sharing between partners
In order to register a company, the following documents are required:
- A completed Form I application
- The application must be stamped with a court fee stamp of Rs. 3e
- The partnership deed has been registered by the sub-registrar
- A photograph of each of the partners
- The Permanent Account Number (PAN)
- Aadhar Card
The partnership deed
In a partnership deed, all partners’ rights and obligations are outlined. All required information must be included in the written document. It may be necessary to provide additional information in some cases. As a result, they
- Interest has been charged on Partner’s Capital, Partners’ Loan, and drawings.
- Paying the partners’ salaries, commissions, etc.
- Making arrangements for audits and preparing accounts
- Tasks, responsibilities, duties, powers, and obligations of all partners are divided.
The partnership deed format can be downloaded
Registration of partnership deeds
A partnership firm that is registered can offer many benefits to its partners. A firm can be registered at the beginning of the business or at any time during the partnership’s existence.
Partnership Firm Registration Procedure
The following are the steps to register a partnership:
The first step is to fill out the application
All members of the company must complete Form 1.
Attach the documents in second step
With the application, the applicant must attach all the required documents.
Signing the application is the third step
The application must be signed by all partners once all documents are attached.
The final step is to issue the certificate
If the Register of Firms is satisfied with all the details provided, it will enter the statement in the Register of Firms and then issue the Certificate of Registration.