PARTNERSHIP FIRM REGISTRATION IN KERALA
Business is something that has its twists and turns all along. The graph of an entrepreneur, especially in the starting phase will be like a roller coaster. The sole proprietorship company is always what people suggest but there are circumstances where it is literally impossible for an entrepreneur to arrange for the requisite resources and capital. The question of which type of company registration one should adopt solely depends on the nature of business. Adopting partnership is a very common way to implement business organisations in India, mainly for a medium-scale business. By adopting for a partnership, one has to join forces with another person or a group of individuals to run a business.
Individuals usually fail to carry on the partnership business when the profit shared between them is lesser that the risks are taken and also when the size of business undertaken is not that huge for a company form of organisation. For running a partnership business successfully one has to look forward to the main pillars that the partnership depends on, that is a division of work, supervision and control and sharing of risks.When additional support is needed to run the business in every aspect a partnership can be undertaken by the entrepreneur. Let’s shed some light on the partnership form of business and the way in which partnership firm registration takes place in India.
In order to register company partnership in Kerala one must first create a partnership deed, next step, register that deed with the Registrar of Firms. The Partnership registration isn’t mandatory, but it will be helpful as a proof of the existence of your firm and also allows you to change to a different form of organization, more easily.
Begin by finding a name for your partnership. When choosing a name make sure that it is unique and showcases your business to the public. It can’t be extensively similar to other registered business names in order to avoid tarnishing the goodwill of the existing firm. Words such as crown, empire, imperial, king, queen, royal or any other words that imply direct approval, patronage, sanction or by the government are prohibited from using as a company name.
Partnership Deed is a document that describes your business and lists down the rights and duties of each individual partner in your partnership firm. In other words, partnership deed is the perfect way to chart out the rights & responsibilities of respective partners in the business entity. The Deed is enforceable by law & acts as a perfect guide to all the partners in carrying out day to day activities of the company.At a minimum, partnership deed should include certain details like the name & address of the firm, the nature of your business, the capital contribution of each partner and also mention the profit sharing ratio among the partners.This in terms helps us to avoid any disagreement or discrepancy with regards to each partner’s role and the benefits that they get.The partnership deed also involves in the method of accounting that is, profit & loss, assets & liabilities of the business. It also determines the fiscal year for all the accounting statements and also gives a clear cut idea of how such statements are to be shared between the partners and other shareholders.Duties, powers and the liability of each partner. The Deed will spell out the name of the partners who are chosen to act as the managing partner and would also be liable for managing the day-to-day business.It provides information regarding the necessary actions to be taken in case of the death of a partner or withdrawal.It also contains the details related to changing the partnership rights when the expulsion of a partner happens.It provides insight into the methods of dissolving the partnership in case the business was terminated.The important step is to finalize the deed in the proper format. As per rule, the partnership deed is to be printed on stamp paper and have to get it signed by all the other partners. All the partners’ signatures have to be signed in front of a notary. The notary will attest each signature as valid.The value of the stamp paper required varies from location to location. You can find the actual rate by checking the Stamp Act for the state of Kerala where your partnership is located.Once the deed is signed, make enough copies for each partner for their records. Keep the original safely as part of the business records.
Process for Partnership Firm Registration in Kerala
This form of business entity comes under Indian Partnership Act, 1932. According to this, it is not compulsory to register partnership firms. This means it is a choice for partners to choose whether to register such a form of business entity or not. The catch in it is, if the partners choose not to register, they would not get the benefits available for registered partnership firms.
- Application for Registration
Partnership company registration in Kochi starts with filling out an application in Form No. 1. Attach the requisite fee and a true copy of the partnership deed along with the form and submit it to the registrar. The application must outline the firm name and nature of the business, principal place of business, date of joining of each partner, full names and addresses of the partners, duration of the firm. Make sure that all this happens within a period of a year from the date of the formation of the partnership firm.
- Verification of Application for Registration
Each partner signing the application must verify the same in the manner as mentioned under the Act.
- Documents required for Registration
The following are the documents that have to be submitted to the Registrar.
Registration Application in Form No. 1
Duly filed affidavit
A certified and true copy of Partnership Deed.
Proof of ownership or rental Agreement of the place of business
- Fee for Registration
According to section 71 of the Act, the State government can make rules regarding the fees that has to be given to the Registrar along with other documents for registration.
- Naming A Partnership Firm
The naming of the partnership firm is mentioned in the above section of this article.
- Entry of Statement in a Register
As per section 59 of the Act, the concerned Registrar makes the entry of the Statement in a register which is called the register of forms. This is done only if the Registrar is satisfied with the application of registration. The date of registration is the date in which the Registrar files the Statement.
- Apply For a PAN Card
Please note that the Registrar of Firms doesn’t include the registration with the Income Tax Department. For that one has to apply for registration with the Income Tax Department and get a PAN Card.
- Open a Bank Account
the firm must open a current account right after receiving the PAN Card. This is to undertake all the company operations via the current account.
9. Start the Business
Once you have opened the bank account you can start the business and if required you can take GST registration.