How to Register a Partnership firm in Delhi?

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How to Register a Partnership firm in Delhi?

Incorporating your business under a regulatory authority is the most critical step to legitimize your business in India. Not only it will give you a plethora of benefits but will save you from dealing with several legal issues in the future. However, choosing the right business structure before incorporation is the biggest question you have. Let us present you with an answer – register your business as a partnership firm in delhi. 

Partnership firm registration as a business entity has gained popularity in India. It is popular among those who wish to start a family business within their locality. As it has fewer members and owners, for many, it is the perfect recipe to gain success in India. Here, we will look at the process of registering a partnership in India.

In this blog, you will know about:

1. The partnership firm
2. Partnership registration fees
3. Why you must know run an unregistered partnership firm?
4. Documents you need to incorporate a partnership firm?
5. Why you should register a partnership firm in India?

Partnership Firm in Delhi

A Partnership is a business entity where two or more partners come together to do business and share profits in a manner determined by the partnership deed. Suitable for small businesses, a partnership firm is the infrastructure of choice for many entrepreneurs in India.

But why such a firm is popular in Delhi? Well, the national capital is a place filled to the brim with Chartered Accountants and such. They often seek a business entity that has minimal compliance but yields maximum profit. And thus, registering a partnership firm is the very thing that meets their need.

Other reasons consist of a few legal complications, Partnership firm registration is a process that happens under the Partnership Registration Act, 1932. This act is old and so is the process, which makes it easier for the entrepreneurs to set up a business entity as soon as they get a business idea.

What are the Partnership Registration fees in India?

Because a partnership firm is a business entity with no statutory body, it doesn’t require any statutory fees. However, when you combine the stamp duty and the professional charges, the partnership registration fees becomes as follows:

1. Affidavit to give consent: INR 10/-
2. Application form: INR 3/-
3. Stamp duty of the partnership deed: Varies from 1% of the capital to INR 5,000/-
4. Registration and documentation charges: INR 1000/-
5. Professional Charges: INR 999/-

Overall, the partnership registration fee you need to pay is INR 2,999/-. It might be less than that, but it will depend upon the nature of your business.

Why you should not have an unregistered partnership firm?

Two types of partnership firms exist, registered and unregistered. Registered obtain a certificate as per the Partnership Registration act. As for the unregistered firms, no one knows about them.

While an unregistered firm will also give you success in days to come, here are some of its drawbacks:

1. If there is a dispute because of legitimate reasons, partners don’t have a way to file a case against each other.
2. It is impossible to file any lawsuits based on contractual rights
3. There is no legal precedence to file suit on behalf of a third party
4. If there is a dispute with an outside party, you can’t claim any set-off

If these terminologies sound alien to you, just know that when you start an unregistered partnership firm, you basically give away your rights to file a court case against anyone.

What documents do you need to procure a partnership firm registration certificate?

First off, know that online registration of a partnership firm is not a possibility. Thus, you need to submit the physical copies of the documents listed below:

1. Duly filled FORM 1 on a three rupee stamp paper (Application form)
2. Address proof and ID proof of the partners (attested)
3. Partnership deed (True copy)
4. Address proof of the registered office of the partnership firm in Delhi (Sale deed)
5. NOC from the partners on a ten rupees non-judicial stamp paper.

One of the following officials must attest the documents above:

1. Gazetted Officer
2. Notary Public
3. Advocate
4. Chartered Accountant
5. Magistrate 1st Class

Register a partnership firm in Delhi

Once you have obtained the documents listed in the above section, follow the steps below to register your partnership firm:

1. Prepare a partnership under the guidance of a good lawyer. It should entail the following details about the partnership
2. Prepare all the documents and get them attested
3. Choose a good name for your partnership. Make sure that it abides with all the necessary regulations.
• Name of the partnership firm
• Address, names, and other details of the partners
• The objective of the partnership firm
• Duration of the partnership
• The ratio in which you will share your firm’s profits
• Capital contribution
4. Submit the copy of the partnership deed, the application form, and the rest of the documents to the magistrate of Delhi

After a thorough assessment, 

you will obtain the partnership registration certificate.

Why you must register a partnership firm in India?

As you can probably guess, the partnership firm registration process is lengthy. So, you must question – why go through all this trouble if you can just as easily establish an unregistered partnership?

The answer to your question lies in the advantages of partnership firm registration:

1. The compliance requirements are next to nothing
2. There are no annual returns to fulfil, other than your generic income tax returns
3. You do not need to make your financial records public
4. Your business accounts won’t need auditing

Conclusion

Registering a partnership firm in India comes with a plethora of advantages. And when you establish one in Delhi, these benefits become ten-fold. Know more about partnership firm registration if you have to. And for further details, contact our experts.

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