Firm Registration Procedure
Firm registration is not compulsory. But it is in the interest of the partners themselves to have their firm registered under the Partnership Act. The Act contemplates the registration of the firm and not the registration of the partnership deed. Registration is also necessary when a new partnership comes into being. For example, on the reconstitution of the firm.The firm registration procedure is given below.
The registration is, however, absolutely optional and not compulsory. The effect of non-registration is only that the partners have to face the consequences stated in Sec 69. So mere non-registration of the firm does not affect the partnership deed, or its clauses including the arbitration clause.
A partnership Deed is required to be registered. Even if immovable property is brought in the firm. Similarly a deed of retirement or dissolution is not needed to be registered as it does not amount to a transfer.
Application for Registration
a. The firm registration may be passed at any time by delivering or by sending by post to the registrar of the locality. Which any area of business of the firm is proposed to be situated or placed. A statement in the prescribed form.
b. It is not essential that the firm should be registered from the beginning. When the partners decide to get the firm registered. As per the provisions of section 58 of the partnership Act. They have to file the statement in the prescribed form.
c. The statement must be accompanied by the prescribed fee stating
(i) the firm’s name
(ii) the principal place of business,
(iii) the names of its other places of business
(iv) the date of joining of each partner,
(v) the permanent address of the partners
(vi) the names in full and
(vii) the duration of the firm.
The same case is to be signed by their agent or all the partners by particularly licensed in this behalf. Every partner so signing it shall also verify in the prescribed manner.
Firm Registration Procedure
d. Attested partnership deed is required to be submitted 1 of application at the time of registration.
e. Registration under the Indian Partnership Act is not compulsory in the sense. The only effect of non registration is that no suit can be instituted by or on behalf of a firm. Ref. Section 69 of Partnership Act 1932). Therefore, registration though not mandatory is advisable. Once a registration is obtained all the subsequent changes are required to be intimated to the Registrar. Firm registration is essential. If the firm has to sue in its own capacity as a firm.
f. Nature of business should be mentioned precisely and not in a summarized form. It is advisable to reproduce the object clause in partnership deed. Names of the partners should be written in full.
g. Date of joining should be correctly written; i.e., the date of joining and not the date of execution of the Partnership deed.
h. Duration should be as per partnership deed. In case, a partnership deed is silent about the duration of the partnership, then it should be mentioned as, “AT WILL” in the form of application.
i. Details of minors and date of attaining majority in particular should be verified before submission.
j.It is observed that names of signatories are not written while signing the forms along with the signatures of the respective partners. It is, therefore necessary to write the name of the partner preferably in capital letter adjacent to the signature and ensure that the date is identical with the date of notarization.
k. Name of the Firm :
Always write correct name, preferably in bold letters. It should be identical to that which is mentioned in the deed of partnership.
l. Date of stamp papers :
It should be ensured that in execution of Partnership deed. The date of execution of the deed and effective date of partnership are properly specified. The date of execution can never be prior to the date of the stamp paper. For example, partners may enter into a partnership effective from 1st April. But if the deed of partnership is executed on 10th April, in such a situation, the partners must state that the deed is executed on 10th April.
m. Stamp paper used for any document in case of a firm must be in the name of any partner.
n. Notarization of document:
The date of signing of forms by partners and date of attestation of the said document by a notary should be identical.
o. Address of the firm :
The address as is mentioned in the partnership deed be identical with that mentioned in the forms. Short forms or abbreviations should be avoided.
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