PARTNERSHIP DEEDS AND ITS REGISTRATION

 BY SUSHMA GOWDA

PARTNERSHIP DEED

Partnership deed is also called as Partnership Agreement. It always details about rights and functionalities of all parties to a business operation. Partnership deed created as per the provision of ‘stamp act’ judicial stamp duty price is Rs. 2000/- and it should get ideally registered with the Registrar Of Firm

Agreement can be either in the form of written or oral. an oral agreement is of no use when the firm has to deal with the tax.

Partnership deed mainly states the details about the attributes about all the characteristics influencing the association between the partners counting the aim of trade, contribution of capital by each of the partner, the ratio in which the gains and losses will be divided by the partners and privilege and entitlement of partners to interest on loan, interest on capital, etc.

Partnership Deed Content

The partnership deed includes basic guidelines of the projects and its future it can be used as evidence at time of conflicts.

What all information shall be included in partnership deed.

1) Name of the firm but the name should not have “company” or “private company” and it should not be similar to any other firm, and it should not include superior (Names and Emblems (Prevention of Improper Use) Act, 1950.) word which requires approval of government.

2) Name and Address of the partner and Headquarters and branches address. To check availability of name click here http://www.mca.gov.in/mcafoportal/showCheckCompanyName.do

3) Nature of the business should be mentioned while preparing Partnership deed.

4) The origin date of business and The term or duration of the partnership.

5) Partner’s contribution to the capital, Profit sharing ratio, and Salary to be mentioned and drawings that can be made by the partners.

6) Interest on contribution and the Interest. Retirement or suspension terms and conditions of the retirement or expulsion of a partner

7) Rights, duties and remuneration of the partners.

8) business’s accounts and the terms for internal and legal audit and method used for calculating goodwill.

REGISTRATION OF PARTNERSHIP FIRM

Registration of partnership firm is not mandatory but it is always advisable to register to get the benefits from the government. Registration of partnership firm may be done at any time – before starting a business or anytime during the continuation of partnership.

An application form along with fees is to be submitted to Registrar of Firms of the State in which firm is situated. The application has to be signed by all partners or their agents.

Only registered firms are considered legally existing. registration at the income tax department is still mandatory for both registered and unregistered firms by the registrar.

WHAT ALL DOCUMENTS ARE REQUIRED TO REGISTER THE PARTNERSHIP FIRM.

1) partnership deed which should be signed be signed by all the partners. Form No. 1 (Application for registration under Partnership Act)

2) Pan card and address proof like Aadhar card, driving license etc.. of partners.

It requires about 12 to 14 working days and it differs from state to state.