The government is providing many benefits via the Startup India scheme. Learn how to register a partnership-based startup and avail those benefits.
Are you looking to launch a partnership-based startup? Great decision indeed, and we recommend you register it. You might be aware that the registration of a partnership business is optional in India. However, there are certain benefits that only a registered business can enjoy.
No longer do you stress about coming up with a company name. A list of available companies can be created using the Vakilsearch Business name generator.
Here, we have answered one of the most frequently asked partnership firm questions we receive, i.e., “how do you register a partnership-based startup?”.
Step-By-Step Procedure for Registering a Partnership-Based Startup in India
If you want to incorporate your startup as a partnership business, you need to follow the normal procedures for Registering a partnership firm. Then, it is advisable to also register your business as a startup with StartUp India.
1. Registration as a Partnership-Based Business
STEP 1: Choosing the Name of the Business
You need to make sure that the name of your partnership business is unique and does not match any existing business entity. Additionally, 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 it has been taken already by another entity.
STEP 2: Draft the Partnership Deed
The partnership deed should mention the following details
- Name & address of the firm and its partners
- The capital contribution by each of the partners
- Further, commissions/salaries or other payables to the partners
- Additionally, the ratio of profit/loss sharing among the partners
- The process to be followed on account of death/retirement of partner(s) and on the dissolution of the firm
- Likewise, the rights, duties, and obligations of the partners
- Other clauses as mutually agreed by the partners
This deed is the foundation of your business. So, instead of taking a risk, you can get it drafted by our experts at an affordable price.
STEP 3: Execution of the Partnership Deed
Once you finalise the partnership deed format, it needs to be executed. It should be duly signed by all the partners and the witnesses.
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. After the payment is made, the deed needs to be notarized.
STEP 4: Preparation of Documents
You should make the following documents ready while registering your partnership-based startup-
- Application form (Form 1)
- Specimen of the affidavit, duly filled
- A certified true copy of the partnership deed
- PAN cards of all the partners (as the identity proof)
- Aadhaar card/voter ID card/ passport/driving license of all the partners
- PAN card in the name of the business
- GST registration certificate in the name of the business
- Rent agreement (in case of rented premises) and utility bill of the registered office space. In the case of rented premises, an NoC from the landlord is also required
- Details of the current bank account in the name of the business.
STEP 5: Submission of the Registration Application
The Registrar of Firms (RoF), of the concerned state government, is the authority that oversees the process of registration. You should submit the application form (duly signed by all the partners), the documents mentioned above, and the requisite fee to the office of the Registrar.
STEP 6: The Approval & Issuance of the Registration Certificate
The Registrar would review the application and the accompanying documents. On satisfaction, the authority will approve the registration and issue the registration certificate. It will then be sent to the official email ID of the business. From the date of registration, your business will be able to enjoy all the benefits of a registered partnership firm.
2. Registration as a Startup with StartUp India
Visit the registration page of the Startup India website at: https://www.startupindia.gov.in/content/sih/en/registration.html
Fill in the required details related to your startup.
Enter the OTP sent to your email and mobile number.
Click “Submit”. Your Startup India profile will get created.
The next step is to obtain recognition for your startup from the DPIIT (Department for Promotion of Industry and Internal Trade). For this, go to your profile and click on the ‘Dashboard’ button. Then click on the ‘DPIIT Recognition’ link.
You will direct to the ‘Recognition Application Details’ page. On the page, go to the ‘Registration Details’ section and click the ‘View Details’ link. Fill in the required details in the ‘Startup Recognition Form’. Click ‘Submit’.
Now, upload the following documents-
- PAN card
- Details of the partners
- Proof of website link and pitch deck
- Registration/Incorporation Certificate of your startup
- Trademark and patent details (if available)
Upon successful submission, you will automatically receive a recognition number for your startup. You will get the recognition certificate after the successful validation of the documents by the authorities. This usually takes 2 days after online submission.
- What Are the Key Features of a Partnership Deed?
- What are the Advantages of Partnership?
- Advantages and Disadvantages of Partnership Firm
- Format of Dissolution of Partnership Firm
- The Relation Between Partners Arise?