Partnership in a company is what never lags in the dynamic development of the state and also every partnership needs to do Partnership Firm Registration for the purpose of security. Companies seek different talents through partnerships to earn a better profit. While there exist both registered and unregistered partnership firms in Uttar Pradesh and other states, for entities in Uttar Pradesh having a partnership registration in Uttar Pradesh provides certain benefits over the unregistered entities. Partnership firm registration in Uttar Pradesh is a process that has to be done diligently through the Registrar of Company. Partnership Act, 1932 provides for both registered and unregistered partnership firms. However, registered partnership firms have an edge over unregistered partnership firms.
What is Partnership Firm?
Persons establish a partnership by having agreed to come together to share profits in a business. Two or more parties come together to form a business entity as per a binding agreement, a partnership deed. In such a partnership firm duties, benefits and liabilities are shared amongst all partners. Requiring a minimum of only two partners, Partnership firms are on the rise due to the flexible operation.
Who is Eligible to become a partner?
Similar to the eligibility of entering a contract, a person who
- Has attained majority according to law governing him/her,
- Is of sound mind, and
- Is not disqualified to contract in any law governing him/her.
Benefits of Partnership firm registration in Uttar Pradesh
- Division of responsibilities as required
- Pre-defined duties, liabilities, terms, and conditions
- Operational Flexibility
- Various Financial Returns to the Partners, and additional benefits.
Required Documents for the Registration
For a Partnership registration in Uttar Pradesh, the following is required:
- PAN Card of the applicant
- Partnership deed- Certified original copy.
- ID and address proof of all the partners – Aadhaar Card of the applicant, Driving License, Voters ID
- Declaration affidavit certifying the correctness of the application.
- In case of non-ownership of property, supporting document for registered offices. In case of rent or otherwise, a rent agreement or NOC by the landlord.
Steps for Partnership firm registration in Uttar Pradesh
Step 1 – Choosing a Partnership Firm Name –
Note- the name should not be trademarked or copyrighted or an unregistered entity. Availability can be checked with MCA.
Step 2 – Drafting and finalizing Partnership Deed –
An agreement is defining all the terms and conditions of the partnership firm coming into force, in stamp paper and notarized in said jurisdiction.
- Name of the Firm.
- Full Address of the registered office of the Partnership Firm.
- Description of the nature of the business involved.
- Profit Sharing Ratio between the partners.
- Partners’ details- Name & Full Address.
- Remuneration to the Partners
- Capital Contribution by each Individual Partner.
Step 3 – Application for PAN for partnership firm –
Like each of its partners, a partnership firm also requires a PAN for taxation purposes. PAN in the name of the partnership is irrespective of the fact whether it is a registered or unregistered firm.
Step 4 – Registration Application –
Assembling the application by including all necessary documents.
- Application for Registration of Partnership in Form No. 1 is mandatory and one have to do that.
- Partnership deed- Certified true copy.
- Ownership proof of the principal place of business or rental/lease agreement for the same.
Step 5 – Submit the Application –
File the application to the Registrar of Company.
Step 6 – Stamp Duty and Fees –
The final step towards partnership firm registration in Uttar Pradesh is the payment of prescribed fees and stamp duty for partnership registration. Fees and stamp duty may vary from state to state depending upon the state in which the firm is registered.
Step 7 – Registration Certificate –
After verification of application to the registrar, the registration certificate is sent to the registered email id.
This completes the partnership firm registration in Uttar Pradesh
A partner plays a firm role in the success of new ventures. The partnership allows one to have partners of choice to support this growth. The main motive of partnership firm registration in Uttar Pradesh is to thrive with surplus benefits. Pre-determination of terms and conditions, ease of setting up, minimal compliance requirements, versatile working conditions, and distribution of liabilities and duties help achieve a mutually beneficial operating condition and further a booming company. Thus, it is a clever option to register as a Partnership in Uttar Pradesh; if you need any help, you can contact the team of BizAdvisors.