Explain the procedure of registration of partnership firms
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Partnership firms in India are governed by the Indian Partnership Act, 1932. While it is not compulsory to register your partnership firm as there are no penalties for non-registration, it is advisable since the following rights are denied to an unregistered firm:
● A partner cannot file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act
●A right arising from a contract cannot be enforced in any Court by or on behalf of your firm against any third party
● Further, the firm or any of its partners cannot claim a set off (i.e. mutual adjustment of debts owned by the disputant parties to one another) or other proceedings in a dispute with a third party.
Registration Procedure: A partnership firm can be registered whether at the time of its formation or even subsequently. You need to file an application with the Registrar of Firms of the area in which your business is located.
◆Application for partnership registration should include the following information: – Name of your firm – Name of the place where business is carried on – Names of any other place where business is carried on – Date of partners joining the firm – Full name and permanent address of partners. – Duration of the firm
●Every partner needs to verify and sign the application
●Ensure that the following documents and prescribed fees are enclosed with the registration application :
– Application for Registration in the prescribed Form – I
– Duly filled Specimen of Affidavit – Certified copy of the Partnership deed
– Proof of ownership of the place of business or the rental/lease agreement thereof It may be noted here that the name of your partnership firm should not “contain any words which may express or imply the approval or patronage of the government except where the government has given its written consent for the use of such words as part of the firm’s name”. Once the Registrar of Firms is satisfied that the application procedure has been duly complied with, he shall record an entry of the statement in the Register of Firms and issue a Certificate of Registration.
● A partner cannot file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act
●A right arising from a contract cannot be enforced in any Court by or on behalf of your firm against any third party
● Further, the firm or any of its partners cannot claim a set off (i.e. mutual adjustment of debts owned by the disputant parties to one another) or other proceedings in a dispute with a third party.
Registration Procedure: A partnership firm can be registered whether at the time of its formation or even subsequently. You need to file an application with the Registrar of Firms of the area in which your business is located.
◆Application for partnership registration should include the following information: – Name of your firm – Name of the place where business is carried on – Names of any other place where business is carried on – Date of partners joining the firm – Full name and permanent address of partners. – Duration of the firm
●Every partner needs to verify and sign the application
●Ensure that the following documents and prescribed fees are enclosed with the registration application :
– Application for Registration in the prescribed Form – I
– Duly filled Specimen of Affidavit – Certified copy of the Partnership deed
– Proof of ownership of the place of business or the rental/lease agreement thereof It may be noted here that the name of your partnership firm should not “contain any words which may express or imply the approval or patronage of the government except where the government has given its written consent for the use of such words as part of the firm’s name”. Once the Registrar of Firms is satisfied that the application procedure has been duly complied with, he shall record an entry of the statement in the Register of Firms and issue a Certificate of Registration.
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Answer:
Along with the required payments, an application form must be sent to the Registrar of Firms of the State where the business is located. All partners or their representatives must sign and verify the registration application.
Explanation:
The Indian Partnership Act's (1932) procedure for registering partnerships:
- Sending an application filled out in Form No. 1 is the first step in the process of registering or incorporating a partnership business. According to section 58's requirements, it must provide the following information:
- the company's name.
- The partners' full names and addresses for their primary residences.
- the firm's timeframe.
- When each partner first joined the company, according to business.
- the location of the company's primary business transactions.
- the names of any further locations where the company performs its functional duties.
- All of the associate partners must sign this commitment or each partner's primary agent acting on their behalf must do so.
- Second, all partners must get their signatures on the application form in the presence of a witness who must be an advocate, a gazetted officer, a vakil, a magistrate, or a registered accountant.
- The Registrar must receive the application as described above, along with the required payments, at the address listed. States are permitted to enact their own laws governing the fee structure for partnership registration or incorporation under section 71 of the Indian Partnership Act.
- The Indian Partnership Act's Schedule I, however, specifies the maximum required fees that may be imposed by the states. The maximum registration price for a statement under section 58 is Rs. 525, according to Schedule I.
For more information on Partnership firms:
Further reading on the procedure of registration of partnership firms:
https://brainly.in/question/6823013
Features of a partnership firm:
https://brainly.in/question/6832061
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