Company IncorporationPartnership Firm

How To Register A Partnership Firm In Chennai?

Are you looking forward to registering a partnership firm in Chennai? Look no further, as this article will tell you everything you need to know about starting and registering a partnership firm in Chennai.

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In India, a partnership firm is one of the most commonly used business structures. It is much easier to form, and the compliance burden for a partnership firm is much lower than that of a company.

How to Register a Partnership Firm

Here is a step-by-step guide to registering a partnership firm and obtaining 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 does not match any existing business entity. For this, you can visit the MCA (Ministry of Corporate Affairs) website. 

You can enter the chosen firm name in the space provided and check if it has already been taken by another entity. You can also use this site to see if the name is protected by a trademark or a domain name.

STEP 2 – Drafting of the Partnership Deed

A partnership deed is unique to every partnership firm. You should always engage the services of professional legal experts while drafting the partnership deed. Broadly, it should mention the following details:

  • Name & address of the firm and its partners
  • Date of starting the business
  • Capital contribution of 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 in the event of the dissolution of the firm
  •  Other clauses as mutually agreed by the partners

Get in touch with our experts to know more.

GET PARTNERSHIP FIRM REGISTRATION

STEP 3 – Execution of the Partnership Deed

Once the partnership deed format has been finalised, it must be executed ( signed by all of the partners). Two witnesses must also sign the deed, and also provide their respective addresses.

And after that, stamp duty should be paid in accordance with the amount prescribed by the relevant state. The deed must be signed on non-judicial stamp paper or by franking. 

Franking is the payment of stamp duty through banking channels, and it is equivalent to purchasing stamp paper. The deed must be notarized after the payment is made.

STEP 4 – Preparation of Documents

You should keep the following documents ready before proceeding with registration – 

  • Application form to register the 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 identity proof)
  • Aadhaar card/voter ID card/passport/driving license of each of the partners (as address proof)
  • PAN card  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 needed.
  • GST registration certificate in the name of the firm
  • Details of the current bank account of the firm

STEP 5 – Registering the Partnership Firm

The Registrar of Firms (RoF), Government of Tamil Nadu, is the authority that oversees the process of registering a partnership firm in Chennai. An application accompanying the documents mentioned above should be forwarded to this authority. Each of the partners should sign the application form. Moreover, you should also submit the requisite fee for registering a partnership firm in Chennai.

STEP 6 – Approval and Firm Registration Certificate

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

The Takeaway

According to the provisions of the Indian Partnership Act, 1932, registration of a partnership firm is optional. Partners may or may not register their firm at their discretion. However,  a registered firm enjoys several benefits that unregistered firms do not. As a result, Vakilsearch experts strongly advise you to register your partnership firm as soon as possible. Get in touch with our team today!

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