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Partnership firm registration in Chennai
What is Partnership Firm registration: 4143615
Partnership Firm registration in Chennai, the business arises when two or more people come together to carry out a business to achieve their common business goals.
In India, we have a definitive law that covers all aspects of a partnership business, the Indian Partnership Act of 1932.
The law defines a partnership as “the relationship between two or more persons who have agreed to share in the profits of a business conducted by all of them or any of them on behalf of/acting for all”
Definition of Partnership firm registration in Chennai
If you are well versed in some domain but do not have enough sums of money to invest and start your own business, you can choose the basic option of starting a partnership firm with your friends or family.
On this page, we are going to see in detail about the type of business entity partnership.
Characteristics for Partnership company registration in Chennai:
Minimum 2 Partners are required for a partnership business
The formation based on written agreement & it’s called partnership deed registration
Profit shared as agreed upon through Partnership deed registration
Partners are collectively and individually responsible for liabilities
Advantages of registration of partnership firm in chennai
There are many advantages to being a Partnership company registration in Chennai, which is why many people choose this type as their business entity. Here we will see the main advantages of the association company.
- Easy to form a Partnership Firm by simply signing a Partnership Deed
- Less legal complications as compared with a Private Limited Company
- Decision making process is faster in a partnership firm as compared with the other entities
- When there are more than one people in the business, it is easy to raise fund
- Simple to dissolve and exit from the business.
- Easy to Form: A partnership firm is easy to form. It can be formed by simply signing a partnership firm Registration on a stamp paper. partnership registration in Chennai is just optional.
- Flexibility in operation: Partnership is flexible to operate. At any time the Partners can decide and change the Object, Capital, and even the business activity.
- Sharing the Risk: As the profit any also Loss are shared between all the partners as per the agreement agreed upon. Hence the risk is equally shared upon.
- Credit: As the Partnership firm is of the nature of Unlimited Liability, the debtors can easily process the loan.
- Legal Restrictions: There is no excessive legal restriction as related to Partnership firm. Hence there is a freedom in administration.
- Simple Dissolution process: The Partnership business can be dissolved by simply signing the dissolution deed. Even the partners can quit easily from a Partnership firm by simply signing the reconstitution deed.
What are the types of registration of partnership firm in chennai
Based on legal differences, there are two types of partnership firms: one is a Registered Partnership Firm and the other is Non-Registered Partnership Firm. As per the Indian Partnership Act, a partnership firm can either be registered or unregistered.
Registered Partnership Firm
Non-Registered Partnership Firm
Registration of Partnership Company in Chennai
Although the Parnership law states that registration is only optional, there are many advantages in registered partnership firm to an unregistered Partnership Firm.
To register a partner company, we must do it before the registrar of firms chennai is located near your business address.
The main advantage of being a registered partnership firm is that it gains trust among partners and also among suppliers. In addition, a registered partnership firm may acquire property in its own name.
Non-Registered Partnership Firm:
This type of partnership firm is easy to form simply by signing a partnership deed by all the partners, but there are certain disadvantages.
The disadvantages of being an unregistered partnership firm is that the company cannot sue any third party on its own behalf.
Even the partners cannot sue the other partners for breach of contract, if it is an unregistered partnership firm. You can’t even acquire property in your firm’s name.
Basic requirements for partnership deed registration in chennai
Two Partners
There must be at least two people to form a partnership firm. Even an artificial legal entity can be a partner in a partnership business.
Foreign nationals or NRI cannot be a part of a partnership firm.
Address
There should be a proper business address for the partnership firm.
The premises may be a rented or own property, but it should be a premises of commercial nature.
The entire licenses and registrations would be granted based on this address.
Lawful Business purpose
A Partnership firm can be formed only for conducting a lawful business activity and that should also for the moto of making profit.
So to form a partnership business, we need to finalize the business activity
Capital
To operate any business, it requires money for its day by day activities, which we call its operational cost. So to manage the expenses we need capital.
As per the partnership act, there is no specific sum of money mentioned as capital. So with even a minimum of 10,000/- also we can start a partnership business.
Partnership Deed
A partnership firm comes into existence when all the partners agree with the terms and signs the agreement which is called a Partnership deed.
This speaks about all the terms and conditions of the partners and also the rules and regulations of the business.
What is a Partnership Deed
You may have a very important question, what is a partnership deed? And what are the points that should be mentioned in a partnership deed?
A partnership agreement is a proper legal document that contains the terms and conditions that are agreed upon by all the partners who are about to start a legal business for the purpose of sharing the profits.
The partnership firm comes into existence as soon as all partners sign the agreement in front of witnesses.
In the event of dissolution, the rights of the retiring partners and the distribution of business assets will be divided according to the agreed terms as mentioned in the partnership deed.
The association details would contain the following details
Name of the partners
Business Name
Purpose of Business
Principal place of business
Capital Contribution
Profit and Loss Ratio
Rights and Responsibilities of partners
Borrowing power
Dissolution procedure
Documents required for registration of partnership company in Chennai
Proof of the partners
- Aadhar Card of all the partners
- PAN Card of all the partners
- Passport size photo of all the partners
Proof for place of business
- Partnership Agreement
- Rental Agreement
- Utility Bill
Steps to register a partnership deed registration in Chennai
Tamil Nadu partnership firm registration online
Step 1: Signing of Partnership deed
As already discussed, the partnership deed spells out the rights, duties, and responsibilities of all partners. In addition, the deed is the bylaw of the company.
The agreed terms and conditions must be written as an agreement and must be signed by all partners.
The partnership deed will be printed on a stamp worth Rs.300/-.
Step 2: Submit details online
The details of the partners and the business of the partnership firm will be uploaded to the Tamil Nadu government website.
The appropriate site to submit details is https://tnreginet.gov.in/.
Once the details are entered correctly, the applicant must upload all partner proofs online.
Step 3: Take an appointment online
Once the details are submitted appropriately, the payment for registration to be submitted online and further, an appointment to be taken.
The appropriate authority for registration of partnership company in chennai. it’s registrar of firms chennai is located at the justdition of the principle place of partnership business
Step 4: Registration
All the partners to be present during the registration time before the registrar of firms. Once the details are verified the registrar will grant the certificate of registration. There is no requirement of renewal of the registration certificate.
Step 5: Licenses
Once the Partnership firm is registered, other licenses such as PAN Card, GST registration certificate, Shop and Establishment license, Product license to be obtained in order to run the business legally.
How to end a Partnership business:
Most of the time, the partners would cooperate to grow the company from one level to the next. But in some cases, there may be some conflicts or misunderstandings between the partners.
In such a case, the partners may agree and dissolve the partnership. This is possible by signing an agreement called a Deed of Dissolution.
By signing a deed of dissolution by all the partners, the partnership company is closed. Again, even this deed of dissolution must be registered with the registrar of companies.
This agreement also speaks of the rights of retired partners.
What is the difference between a Partnership Firm and a Private Limited Company?
| SL | Feature | Private Limited | Partnership Form |
|---|---|---|---|
|
1 |
Members |
Minimum Number of members that is needed to form a Private Limited Company is 2. But the maximum is 200
|
Minimum Number of members that is needed to form a Private Limited Company is 2. But the Indian Partnership Act doesn't mention about the maximum limit for members. |
|
2 |
Liability |
The most important feature of a Limited Company is that the Liablity of share holders are limited by their Shares
|
The partners are Jointly and individually liable. Which it is called as unlimited liablity.
|
|
3 |
Governing Law
|
Private Limited Company is Governed by The Companies Act, 2003
|
Partnership Firm is governed by Indian Partnership Act, 1932
|
|
4
|
Creation
|
By Incorporating the Company under Companies Act, it can be formed
|
By simply signing the Partnership Agreement, a Partnership Firm can be formed. Registration is Optional
|
|
5
|
Name
|
Name of the Company need to be approved by the ROC. Further there are many regulations for name approval.
|
No option for getting a name approval in Partnership Firm.
|
|
6
|
Audit
|
Mandatory
|
Not Mandatory
|
|
7
|
Management
|
The Board of Directors Manages the Private Limited Company
|
Partners manages the Partnership Firm
|
|
8
|
Capital
|
Minimum 1 lack share capital is required to form a Private Limited Company
|
Partnership Act does not mention requirement on Capital
|
|
9
|
Separate Legal Entity
|
Partnership Firm is not a Separate legal entity
|
Partnership Firm is a Separate legal Entity
|
|
10
|
Perpetual Succession
|
It does not have perpetual succession as this depends upon the will of partners
|
The company keeps on existing in the eyes of law even in the case of death, insolvency, the bankruptcy of any of its members. This leads to the perpetual succession of the company.
|
To know about company registration in Chennai
Frequently Asked Questions :-
Not necessarily. However, if the company is not registered, the partners cannot enforce their rights in court against each other or third parties. Where the deed of incorporation creates, transfers or affects rights over property.
Under Section 4 of the Indian Partnership Act, a person who enters into a partnership with another person is called a ‘partner’.
A partnership deed is a legal document signed by the partners when a partnership firm is formed. It contains all the terms and conditions of the partnership firm.
The Companies Act does not prohibit a non-citizen to become a partner in an Indian company, but getting clearances and permission from respective authority is mandatory.
Partners in the partnership firm must be of legal age and not prohibited by law from entering into contracts. Minors cannot be partners in a partnership. However, under Section 30 of the Indian Partnership Act, they can enter into contracts for the benefit of the partnership with other partners through their guardians with the consent of all existing partners.
Registration of a partnership is not mandatory and the partners are free to register it or not. However, if the partnership is not registered, they cannot enjoy legal rights, so it is advisable to register it.
A sleeping partner is someone who contributes part of the capital but does not actively participate in the management of the company.
If a partner wishes to dissolve the partnership voluntarily, he/she can do so by giving notice. The partnership can be dissolved in accordance with the previously notified conditions.
Unregistered partnerships are valid, but the unregistered partnership deeds do not give the right to the general partner to take legal action against them.
The registrar of companies issues a incorporation certificate.
To know more about Partnership Firm Registration in Chennai
Also service is available at partnership firm registration in Bangalore
Le Intelligensia's Partnership firm registration Service Providing City in Tamil Nadu
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