Partnership Company Registration in India: A Complete Guide with FAQs
A partnership company is a type of business structure in which two or more individuals own and manage the business together. In India, partnership firms are regulated by the Indian Partnership Act, of 1932, and the rules and regulations are specified under it. If you are looking to start a partnership firm in India, it is essential to understand the process of partnership company registration.
In this article, we will take a detailed look at the steps involved in registering a partnership company in India, along with answering some frequently asked questions (FAQs) to help you understand the process better.
Steps Involved in Partnership Company Registration in India
Obtain a Digital Signature Certificate (DSC) and a Director Identification Number (DIN)
The first step in registering a partnership company in India is to obtain a Digital Signature Certificate (DSC) and a Director Identification Number (DIN) for each of the partners. A DSC is a secure digital key used to file electronic documents with the Registrar of Companies (ROC), while a DIN is a unique identification number assigned to each director of a company.
Choose a Unique Name for your Partnership Firm
The next step is to choose a unique name for your partnership firm. You can check the availability of a name by conducting a name availability search on the Ministry of Corporate Affairs (MCA) website.
Prepare the Partnership Deed
A partnership deed is a legal agreement between the partners that outlines the terms and conditions of the partnership, including the rights and responsibilities of each partner. The partnership deed should be drafted by a professional and should be signed by all the partners.
Register the Partnership Deed with the Registrar of Firms
Once the partnership deed is ready, the next step is to register it with the Registrar of Firms. The registration process involves submitting the partnership deed along with the required documents, such as the DSC and DIN of the partners, to the Registrar of Firms.
Obtain PAN and TAN for the Partnership Firm
After the partnership deed is registered, the next step is to obtain a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) for the partnership firm. PAN is a unique ten-digit alphanumeric number assigned to the partnership firm, while TAN is a unique ten-digit number used for deducting and collecting taxes.
Obtain GST Registration (if applicable)
If your partnership firm is involved in taxable supplies, you will need to obtain Goods and Services Tax (GST) registration. GST registration is mandatory for all businesses whose turnover exceeds Rs. 20 lakhs per annum.
Open a Bank Account
The final step is to open a bank account in the name of the partnership firm. This will allow you to carry out transactions and manage the financials of the partnership firm.
FAQs on Partnership Company Registration in India
- What is a partnership company in India?
A partnership company in India is a type of business structure where two or more individuals own and manage the business together. - What is the Indian Partnership Act, 1932?
The Indian Partnership Act, 1932 is a piece of legislation in India that regulates the functioning of partnership firms. - What is a Digital Signature Certificate (DSC)?
A Digital Signature Certificate (DSC) is a secure digital key used to file electronic documents with the Registrar of Companies (ROC). - What is a Director Identification Number (DIN)?
A Director Identification Number (DIN) is a unique identification number assigned to each director of a company in India. - What is a partnership deed?
A partnership deed is a legal agreement between the partners in a partnership company that outlines the terms and conditions of the partnership, including the rights and responsibilities of each partner. - What is the Registrar of Firms?
The Registrar of Firms is the government agency responsible for registering partnership firms in India. - What is a Permanent Account Number (PAN)?
A Permanent Account Number (PAN) is a unique ten-digit alphanumeric number assigned to a partnership company in India. - What is a Tax Deduction and Collection Account Number (TAN)?
A Tax Deduction and Collection Account Number (TAN) is a unique ten-digit number used for deducting and collecting taxes from a partnership company in India. - What is Goods and Services Tax (GST) registration?
Goods and Services Tax (GST) registration is mandatory for all businesses in India whose turnover exceeds Rs. 20 lakhs per annum and are involved in taxable supplies. - Why is it important to have a bank account in the name of the partnership firm?
Having a bank account in the name of the partnership firm allows the partners to carry out transactions and manage the financials of the partnership firm.
In conclusion, partnership company registration in India is a straightforward process that requires careful planning and attention to detail. By following the steps outlined in this article and understanding the FAQs, you can ensure that your partnership company is registered smoothly and efficiently.