Partnership Deed Format
A partnership deed, actually, is a Partnership Deed Format and write a legal document that underlines all the responsibilities and the rights of all the members of the partnership. There is nothing like a partnership firm must register themselves legally, however, the registration will just confer some benefits which can be used as the advantages for the firm.
The partnerships in the country are governed by The Indian Partnership Act of 1932. The Deeds of Partnership registration is good when it comes to the promotion of mutual trust and understanding among the members of the partnership. It is a testimony of the conditions and the terms on whom the businesses are founded and that is the reason it is of great importance when there are disputes. A partnership deed must be made and also should be registered under Indian Movable Property Act altogether with some other involving movable properties.
Even though it is not so important for any partnership firm to get registered under the Indian Partnership Act but it is usually advised to get it done s that the advantages can be taken. The transactions and the existence of the firm will be unharmed if it is not registered since the partnerships are just the agreement between just two or more than two people. However, if you want to get the following benefits, then the partnership firm must be registered.
- Right to file a lawsuit: Registration will simply allow the firm that they can file a lawsuit against any third party. If there is an unregistered firm wants to file some case, then they will have to get registered under Indian Partnership Act before filing the lawsuit.
- A co-partner’s right to protection: When there are some disputes in partners, the unregistered firm cannot sue the counterpart.
- Protection of property: The retired or deceased partner’s property still continues to be a liable one for the firm acts till the public notice is not served for the registrar change. But if the firm is unregistered, the property will simply be charging the debts even the person is deceased or retired.
- Creditors protection: The records must be up to the date of the registered firm as it can protect the creditors from liabilities evasion on partners’ part.
- Government facilities: There are some rules and regulations followed by the registered firms and they also get protection in production and business.
- Bank credits: The bank credits can be easily received as the registered firms comply with the rules of government strictly.
- Public confidence: The registered companies get the trust of the customers easily as they are under Government.
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The unregistered firms also get some rights that are allowed to them by non-registration | Partnership Deed Format
- They can bring the lawsuit of the dissolution of the firm or for the accounts settlement.
- The partners of the unregistered firms can claim or use a set-off where the matter of suit subject doesn’t exceed the limit of Rs. 100 in value.
- The third part can use the firms always even if it’s registered or not.
The partnership firm registration can be easily done before starting a business or during the times of continuation of partnerships. The registration process has two steps and they are filing an application and the required documents submission. The first step, filing an application is done with the Registrar of Firms. According to Indian Stamp Act 1899, the partnership agreement needs to be printed on a Non-Judicial Stamp Paper. This agreement is signed in all partners’ presence and every partner must have a signed original for their records.
The application has the following information | Partnership Deed Format
- Name of the firm.
- Principal firm place of business.
- Names of the Partners, addresses and the dates joining the firm.
- If there is a particular period for which the firm is started, it should be mentioned.
- If the firm is made for achieving a specific objective, it should be mentioned.
Along with these, the following must also be fulfilled | Partnership Deed Format
- Partnership registration application in Form 1
- ID and address proof of partners like Passport/Voter ID/Pan Card/Driving License Copy/Aadhar Card.
- Address proof of the business place. In case it is rented, rent agreement and NOC from the landlord must be given.
After the application procedure is completed, the Registrar of Firms will make an entry in the Registrar of Firms and will issue a Certification of Registration.