Know the Legalities of Partnership Registration in India
All partnerships in India are registered under the Indian Partnership Act, 1932. However, the act is not applicable to certain types of partnership like Joint Stock Company (JSC), or a Limited Liability Partnership (LLP). The registration process is completely optional and is not mandatory except for few types of partnerships. Partners in a partnership firm are not liable for payment to each other. This is the benefit of this type of business. Liability cannot be attributed to any partner individually, but is divided proportionately among all partners. Registering your partnership in India is a fairly simple process. You just need to provide the designated authorities with a copy of your Memorandum of Association, together with the drafts of articles of association and articles of association undertaking, and an agreement between partners. Unlike other countries, India has a very complex registration process for partnerships. It also takes much more time to register. Partners need to show their intention of carrying on business together and declare the nature of that business as well as the nature of the contribution each partner is making to that business. The partners have to deposit a minimum capital of INR 500 with the Registrar’s Office at the time of application.
What Partner Needs to Submit?
Legal documentation is required for registration of partnership, and the partners must submit a deed of partnership, with each partner’s signatures. A qualified person must attest to the authenticity of the signatures. It is also advisable to submit proof of address and proof of identity (such as passport or PAN card). It is mandatory to register the partnership with the Registrar of Companies. The minimum requirement for registration is Articles of association (AOA) and Memorandum and Article (M&A). AOA is the document containing the details of the company, its structure, name of partners, their interest in shares etc. M&A contains the names of all partners, address of each partner, their shareholding in percentage, date of incorporation and duration.
Specimen Signatures and Stamp
When registering a partnership, the partners must all sign the same document. The signatures must be witnessed and stamped. There is an official government stamp and official seals that can be purchased for this purpose. In India, a partnership deed must be signed by all partners of the company. If any partner is illiterate, a witness must sign the document on their behalf. Furthermore, the deed must be stamped with an official seal of a notary public to be valid. In India, if the จดทะเบียน หจก is registered on a stamp paper, then one of the partners must affix his or her signature to it. The signatory must also duly sign the registration form in ink and stamp his or her name with an official rubber stamp. The registration certificate is valid for a period of 12 months from the date of issue. A partnership is a registered body, consisting of at least two persons, who have agreed to carry on business together. Registration of a partnership can be made with the Registrar of firms by any one or more partners, provided that it complies with the provisions of The Partnership Act.
