Partnerships and proprietorships are the most common forms of business organization in India. Companies and Limited Liability Partnerships (LLPs) require more statutory compliance than partnerships and proprietorships. In this article, we examine the process of registering a partnership firm in Manipur in detail.
Firms that form partnerships
Two or more people form a partnership firm under the terms and conditions of the Partnership Deed. The decision to register a partnership is up to the business owners, and it is not mandatory. In contrast, partnership firms can benefit from numerous advantages when they are registered.
Registration of partnership firms
The Partnership Act, 1935 governs all Indian partnership firms. Two or more people can form a partnership firm with a maximum of 20 partners. Every partnership firm in Manipur must be registered with the Registrar of Firms.
The benefits of registering
The following benefits can be obtained upon Partner Firm Registration in Manipur, although it is not mandatory.
Getting Started is Easy
Register partnership firm requires no legal formalities, so it can be easily started. Firms that are not registered are restricted from certain legal benefits.
Name of business
Any name that does not violate a registered trademark may be chosen by a partnership firm.
Annual filing is not required
Unlike an LLP or any other type of company, a partnership does not need to file annual accounts with the Registrar.
Deed of Partnership
A partnership deed is the first step in registering a partnership firm. A partnership deed specifies the principles and obligations of the partners. Furthermore, the documents contain the name and address of the partners, the nature of the business, the location, the duration, the capital contribution and profit sharing between the partners, and the remuneration they receive.
The partnership deed must also include the following clauses.
- On drawings, interest has been charged on the capital of the partners, the loan to the partners, and the attention.
- Paying the partners’ salaries, commissions, etc.
- Making arrangements for audits and preparing accounts
- Partnership tasks, responsibilities, powers, and responsibilities.
- When a partner dies or retires suddenly and a new partner is added, there are certain rules and regulations to follow.
Choosing a name for your partnership
Firm names can be chosen by the partners. In choosing a name, certain norms must be followed.
- The name of the firm should not be identical or similar to the name of another firm that performs a similar function. Existing firms risk losing their reputations and fames for this reasonNames containing crowns, emperors, empresses, empires, or words implying government sanction, approval, or patronage should be avoided.t.State governments can grant an exemption when they issue a written permit for the use of such words..
During the registration of a company, the following documents are required.
- Completed Form No. 1.
- Sub-registrar registers partnership deed.
- Photographs of passport size
- Aadhaar Card.
How to register a partnership firm?
Manipur’s registration process for partnership firms is as follows:
The first step is to fill out the application
All members of the company must complete Form 1.
The second step is to attach the documents.
All required documents must be attached to the application.
The third step is to sign the application
The application must be signed by all partners once all documents are attached.
The final step is to issue the certificate
A certificate of registration is issued after the register views the application and is satisfied with all the provided information.
An application fee stamp of Rs. 3 must be affixed to the form.