Easy incorporation, profit and loss sharing, minimum compliance, and economical maintenance. These are the benefits of registering a partnership firm. Learn how to establish your own partnership firm in the state of Tamil Nadu in this guide.
Choosing the right business structure is integral to ensuring business success. This is because the rate of taxation, frequency of returns filing and the stringency of compliance measures are all determined by the business structure. A partnership firm is best suited for small firms that intend to stay small. It is a suitable option for such enterprises because of the simplicity of its setup, low cost and minimum compliance requirements.
The rules on partnership firm registration in India is prescribed under Section 58 of the Indian Partnership Act, 1932. This Act also governs the rights and obligations of the partners among themselves, as well as the various legal relationships between partners and third parties that arise as a result of the establishment of such a partnership.
Here’s a deeper look at the registration process in Tamil Nadu
Partnership Deed for Registering a Partnership Firm
The partnership deed must be filed with the Registrar. This is because a partnership firm operates in accordance with the rules and regulations outlined in the partnership deed. Furthermore, the partners decide on the division of roles, responsibilities, and profits on the basis of this document. Hence, drafting a partnership is a crucial step of the partnership registration process.
Here’s a look at everything a partnership deed must address in order to register a partnership firm in India –
- Name of the firm
- Address of the firm
- The business of the firm
- The contractual period of the partnership
- Name and identify proof of each partner
- Duties of each partner
- Roles and responsibilities of each partner
- Initial investment from each partner
- Profit/loss sharing ratio
- Additional information to be included:
- Salary and commission of each partner
- Procedure to be followed in case of death or retirement of a partner
- The procedure to introduce or remove a partner, and
- lastly, the procedure to be followed while auditing
The partnership deed must be drafted in a particular format under the guidance of a professional lawyer. Furthermore, the agreement must be transcribed onto a stamp paper of the appropriate value. Following that, you must obtain the signatures of all partners. Also note that a copy of the partnership deed should be retained by each partner, while the original should be stored in the custody of the firm.
Documents Required for Partnership Firm Registration in Tamilnadu
Keep the following documents handy for registering a firm in Tamil Nadu –
- Copy of the original partnership deed
- PAN card of the firm
- Address proof of the firm (lease agreement/NOC from owner/property papers)
- Attested address proof of all the partners
- Attested ID proof of all the partners
- Affidavit certificate stating all details furnished are true and correct to the best of the partners’ knowledge and belief.
- Affidavit declaring that the partners intend to become a partner
- Authorization letter in case the partners wish to authorize a third party to conduct the registration and witness signing process on their behalf
- A signed copy of Form 1 in case registration was done online
- Acknowledgement slip of the partnership registration fee payment
Partnership Firm Registration in Tamil Nadu
- First and foremost, choose a simple, memorable, and yet distinct and relevant name for your company. Avoid choosing names that are already being used by other firms, as your registration may be denied on that count
- As soon as you come up with a name or logo for your firm, register a trademark to avoid copycats and protect your firm against infringement
- Next, you will have to draft a partnership deed. Our experts can get one drafted for you right away! Get in touch with us today
- After signing and executing the deed, the partners must obtain a PAN card for the partnership firm
- Next, the partnership firm must begin the process for registration
- After filling the form, all the partners must sign it in the presence of a notary who will notarize the signatures. The registration of partnership firms in Tamil Nadu can be done online, as well
- Next, you will have to locate the nearest Registrar of Companies and submit the application along with the mandatory supporting documents
- After verification by the Registrar, your partnership firm will be formally registered, and you will receive an intimation regarding the same via email
- Within a week, you will also receive your certificate of registration via mail.
Please do note that the above-mentioned steps are an extremely simplified version of the partnership registration process. Get in touch with our legal experts to ensure a hassle-free execution of partnership registration in Tamil Nadu.
Get Assistance From Vakilsearch
Once you get in touch with us and intimate us of all your needs and requirements, we will draft the partnership agreement for you within just 4 working days. We will also do up to two rounds of iterations, if you change your mind about the details, at no extra cost.
Once the partnership deed is registered according to the prescribed format, we will then proceed to register the partnership firm on your behalf. We will also remain in constant touch with the authorities to ensure that your certificate of registration gets processed as quickly as possible.