How to Register a Partnership Firm in Chennai?

Last Updated at: Jan 31, 2021
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Partnership Firm in Chennai

Are you looking forward to registering a partnership firm in Chennai? A partnership firm is one of the most popular business formations in India. It is much easier to form and the compliance burden is also much less than that associated with companies.

Go through this blog. We will tell you everything about how to open a partnership firm and how to register a partnership firm in Chennai.

How to Register a Partnership Firm

Here is the step-by-step procedure for how to register a partnership firm and how to get a firm registration certificate

STEP 1

Choosing the Name of the Firm

You need to make sure that the name of your partnership firm is unique and should not match with any existing business entity. For this, you can visit the MCA (Ministry of Corporate Affairs) website by clicking at http://www.mca.gov.in/mcafoportal/showCheckCompanyName.do. You can fill in your proposed name of the firm in the space provided and check if the same has been taken already by another entity. In this site, you can also check if a trademark and domain are available for the name.

STEP 2:

Drafting of the Partnership Deed

A partnership deed is a unique document for every partnership firm. You should take proper care while drafting the partnership deed. It should mention the following details:

  • Name & address of the firm and its partners
  •  Date  of starting the business
  •  The capital contribution by each of the partners
  • The ratio of profit/loss sharing among the partners
  • Commissions/salaries or other payables to the partners
  • The rights, duties, and obligations of the partners.
  • The process to be followed on account of death/retirement of partner(s)
  • The process to be followed on the event of the dissolution of the firm
  •  Other clauses as mutually agreed by the partners

Register Your Partnership Firm

STEP 3

Execution of the Partnership Deed

Once you finalise the partnership deed format, it needs to be executed. It should duly get sign by all the partners. The witnesses also need to sign the deed, along with a mention of their respective residential addresses.

Next, stamp duty should be paid as prescribed by the Stamp Act of the concerned state. The deed needs to be executed either on non-judicial stamp paper or by franking. Franking is the payment of stamp duty via banking channels and is equivalent to a stamp paper. After the payment is made, the deed needs to be notarized.

The next step is about the documentation related to how to register the partnership deed or how to register the partnership deed online.

STEP 4

Preparation of Documents

You should make the following documents ready before proceeding with registering a partnership firm in MSME-

  •  Application form to register a partnership firm online (Form 1)
  • A certified true copy of the partnership deed
  • Specimen of the affidavit, duly filled
  • PAN cards of all the partners (as the identity proof)
  • Anyone from Aadhaar card/voter ID card/passport/driving license of each of the partners (as the address proof)
  • PAN card in the name of the firm
  • Rent agreement (in case of rented premises) and utility bill of the registered office space. In the case of rental premises, an NoC from the landlord is also in need.
  • GST registration certificate in the name of the firm
  •  Details of the current bank account in the name of the firm

STEP 5

Process of Registering a Partnership Firm

The Registrar of Firms (RoF), Government of Tamil Nadu, is the authority that oversees the process of how to register a partnership firm in Chennai. The application should accompany the documents mentioned above. Each of the partners should sign the application form. You should also submit the requisite fee for registering a partnership firm in Chennai.

STEP 6

The Approval for How to Get a Firm Registration Certificate

After you submit the application and make the requisite payment, the Registrar reviews the application and the accompanying documents. On being with satisfaction, the authority will approve the registration of the firm. The registration certificate will then issue and will be send to the official email ID of the firm. From the date of registration, your firm will be entitled to enjoy all the benefits of a registered partnership firm.

The Footnote

Registration of a partnership firm is optional, as per the provisions of the Indian Partnership Act, 1932.  The partners, at their own discretion, may or may not decide to register their firm. However, a registered firm enjoys certain benefits that are not available to unregistered firms. Therefore, we would highly recommend you to register your partnership firm at the earliest.