How To Register A Partnership Firm In Delhi

In Delhi a partnership firm is ideal for businesses with fewer founders or owners. In this article, we will take a look at how to register a partnership firm in Delhi

In a recent communication, the MCA announced the decriminalisation of various provisions of the Companies Act. This is an attempt to improve further the ‘ease of doing business in the country. These include norms regarding filing annual returns, eligibility and appointment of designated partners, registration of partner changes, maintenance of books of account, and so on. A Partnership firm is a type of business entity wherein the partners involved agree to share the profits and losses incurred by the business in a predetermined manner. Due to its advantages, partnership company registration has grown in popularity in recent years. Partnership firm registration is the right choice for small and medium-sized business enterprises. Furthermore, partnership firm registration in Delhi is popular due to its ease of formation and minimal compliance requirements. 

Partnership Firm

The first step to making your firm a legal entity in India is to register it. Doing so provides a slew of benefits and ensures that you are protected from legal hassles later on. Partnership firm registration falls under the purview of the Partnership Act, 1932: https://www.mca.gov.in/Ministry/actsbills/pdf/Partnership_Act_1932.pdf. As per the Act, there are two types of partnership firms in India;

• Registered partnerships 
• Unregistered partnerships

Since the only criteria to function as a partnership in India is the execution of the partnership deed, partners have the option not to register their business. However, this is extremely risky and ill-advised, as partners won’t have certain rights, as mentioned in Section 69 of the Act.

Disadvantages of Unregistered Partnership Firms

1. Partners cannot file a lawsuit against other partners
2. The firm cannot file lawsuits to enforce a contractual or conferred right 
3. The firm cannot file suits to enforce a right decreed by another court of law
4. Partners cannot file suits on behalf of a third party
5. Partners claim set-off in case there is a dispute with an external party

Partnership Firm Registration Fees

While there are no statutory fees on registration of partnership firm in Delhi, the following expenses will be incurred:

1. Affidavit on an ₹10 stamp paper indicating the partner’s consent to enter into a partnership deed
2. Likewise, the court fee stamps are worth ₹ 3 on the application form.
3. Stamp duty for the paper on which the partnership deed is drafted may vary between 1% of the capital and ₹ 5000, whichever is lower. 
4. Similarly, the registration and documentation fee to register the deed depends on current state laws. Still, in most cases, it costs around ₹1000.
5. Further, the legal consultant charges professional fees to draft your legal documents.

Start your journey now by clicking here: http://vakilsearch.com/partnership-firm-registration

Documents Required for Partnership Firm Registration in Delhi

1. Duly filled Form 1 with an ₹ 3 stamp on it
2. Attested identity and address proof of partners – PAN/Passport/Driving License/Aadhaar/Voter’s ID
3. A true copy of the partnership deed 
4. Attested proof of address of the registered office – sale deed/lease agreement/latest electricity/gas/water/telephone bill/tax receipt
5. Additionally, NOC from the owner in the prescribed format on ₹10 non-judicial stamp paper.

Any of the following individuals must attest to all the documents mentioned above:

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

How to Register a Partnership Firm in Delhi?

Step 1 

First and foremost, the members should decide on a name and ensure that it is available and abides by the laws. Next, the members should work together to get all the required documents notarised and attested.

Step 2 

An integral part of registering a partnership firm in Delhi is drafting and notarising the Partnership deed. An experienced lawyer from Vakilsearch can help you draft a partnership deed, which must contain the following details;

• Name and address of the partnership firm
• Name and address of all the partners
• Nature of business and date of commencement of activities
• Partnership duration
• Profit-sharing ratio 
• Capital contribution ratio

Step 3

An attested copy of the notarised and registered partnership deed must then be copied onto a non-judicial stamp paper. Further, the value of this paper must be between 1% of the capital introduced and ₹5000, whichever is lower. 

Step 4 

Next, the experts at Vakilsearch will approach the concerned registrar with all the documents listed above. Following this, they will apply for registration on your behalf, along with all the supporting documents.

Step 5 

On submission, you will receive an application ID, which may be used for future reference. After verification, you will receive a Certificate of Registration.

Address of the Magistrate in Delhi to register your deed;

M. Band Gali,

Shastri Nagar,

New Delhi,

Delhi 110031

Advantages of a Partnership Firm Registration

1. Minimal compliance requirements
2. Do not have to file annual returns with the RoC, but only Form ITR-5
3. Additionally, financial statements are not made publicly available, granting them more privacy
4. Accounts need not get auditions
5. Partners can claim interest, salary, bonus, and commission paid to another partner as a deduction.

How Vakilsearch Makes Things Easier?

1. Submit your details, and we will connect with you
2. We will share the agreement’s first draft within 4 working days
3. We do up to two rounds of iterations, if necessary, at no extra cost.

Also Read:

• Reasons to Register a Partnership Firm
• What are the Advantages of Partnership?