How to Register a Business Partnership?
“Registration of a firm does not provide a separate legal entity to the concern, as is the case with a joint stock company.”
Whenever individuals or companies form a partnership, they are to abide by certain rules and regulations that may vary from country to country. For example, if we talk of the partnership in England, registration of a partnership is strictly a compulsory matter. A partnership that is not registered stands null and void.On the other hand in India such a registration is not required at the first place. In India, there are certain privileges, which are allowed to those firms, which are registered. Unregistered firms are prejudiced in certain matters in comparison to registered firms.
It can also be said that registration of a firm is not compulsory directly but it is so in an indirect way. To avail of certain advantages under law the firm must be registered with the registrar of firms of the state. So, most partnerships make it a point that they get registered save those that are formed to achieve some ulterior motives.
Registration of a firm does not provide a separate legal entity to the concern, as is the case with a joint stock company. Partnerships don’t need registration for coming into existence because they are created by an agreement among two or more persons.
The registration of a firm merely certifies its existence but non-registration does not invalidate the transaction of the firm. A simple procedure is followed for getting a firm registered. This procedure is divided into two parts.
The first thing to be done is to file an application with the registrar of firms on a prescribed form. A small amount of registration fee is also to be deposited along with the application.
The application should contain information regarding the name and place of the firm, the name and address of the partners and the dates on which they joined the firm. If the firm is established for a particular period, that period also deserves mention. Similarly, the aims of the partnership are also not to be hidden.
The particulars are then submitted to the registrar for examination. It is also seen whether all the required legal formalities have been observed or not. If everything is in order, the registrar records the entry in the register of firms and the partnership acquires legal validity.
Author - DeeKay
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