Anyone in India can form a partnership firm through a written or oral agreement. Under this agreement, two or more people agree to split the profits from a business run by all or any of the partners. Partnership firms are required to submit a partnership deed as proof of existence for Income Tax purposes. In addition, a GST Registration application is required. In this article, we discussed the procedure for applying for a registering for GST as a partnership firm.
A partnership is simple to form because no complicated business formalities are required. The Partnership Act of 1932 governs the formation of partnership firms in India. The registration of the partnership firm requires a minimum of two people.
Partnership registration is not required, and it is entirely up to the partners whether or not to register the partnership firm. However, a partnership firm cannot obtain legal benefits unless it is registered, so it is always advisable to register it.
A Partnership firm is not difficult to form because no mind-boggling business conventions must be followed. Partnership Firm Registration and the Partnership Firm Registration Documents Required aren’t required, and it’s up to the partners whether they want to join the association firm or not. However, an association firm cannot benefit from legal advantages if it is not enrolled; thus, it is always appropriate to enlist it.
Documents Required For GST Registration of Partnership Firm
To take advantage of the benefits of the input tax credit, any company, firm, or individual must register under the Goods and Services Tax (GST). GST registration can be completed online at the Goods and Services tax follows are
- PAN card of partnership firm and designated partners;
- Photograph of all the partners;
- Identity proof of all the partners;
- Copy of address proof for registered office;
- The electricity bill, water bill, landline bill etc.
- Copy of legal ownership document or municipal khata copy (in case of owned premises)
- Rent agreement and No Objection Certificate (NOC) from the owner of the premises (in case of rented premises).
- Copy of partnership deed;
- Copy of bank statement or cancelled cheque or first page of the passbook.
Partnership Firm Registration
A partnership firm should be registered by submitting an application form and fees to the Registrar of Firms in the state where the business is based. The application must be signed by all partners or authorized representatives. Whenever the Registrar of Firms is pleased with the application, he would enters the company into the Register of Firms and issue a Certificate of Registration.
Current Bank Account
- Partnership deed
- Partnership firm PAN card
- Address Proof of the partnership firm
- Identity proofs of all the partners
- Partnership registration certificate (if the partnership has been registered)
- Any registration document issued by central or state government (normally GST certificate is submitted)
- Copy of electricity bill, telephone bill or water bill (not more than 3 months old)
- Authorisation letter on the letterhead of the firm authorising a partner as authorised signatory for the bank account.
Frequently Asked Questions
Is it mandatory to register a Partnership Firm?
According to the Partnership Act of 1932, it is not necessary to register a partnership firm. However, it is preferable to form a partnership firm. If the firm is not registered, it will be unable to take advantage of any legal benefits provided by the Partnership Act of 1932.
What are the legal benefits provided for the registered partnership firm?
The registered firm or its partners may sue a third party for breach of contract. If the partnership firm is not registered, it cannot file a case against a third party, but the third party can file a case against the partnership firm. In addition, the unregistered firm or any of its partners cannot claim set off in the event of a dispute with a third party.
How much time does it take to register a partnership?
In India, the registration of a Partnership Firm can take up to 10 working days. However, the time required to issue the Certificate of Registration may vary depending on the regulations of the relevant state. The registration of a Partnership Firm is subject to the Government’s processing time, which varies by state.