Registration of a Partnership Firm in Tamil Nadu-Step By Step Procedure: People who have come together or entered into a partnership with another individual or group on a business are individually known as ‘partners’. They are collectively referred to as a ‘Partnership Firm.” A partnership firm is not a separate legal entity that has distinct firm names from its members.
The registration of a Partnership Firm highly depends on the Government processing time and varies for each State accordingly.
This article briefly elucidates the step-by-step registration procedure of a partnership firm in Tamil Nadu.
- Partnership Firm Registration
- Partnership Deed for Registration Of A Partnership Firm
- Documents Required for Registration Of A Partnership Firm
- Step-By-Step Registration Procedure Of A Partnership Firm In Tamil Nadu
- Drawbacks That An Unregistered Firm Faces
Partnership Firm Registration
A Partnership Firm works based on the guidelines and rules laid in the deed of Partnership or the Partnership Agreement. Moreover, each partner decides on the roles, responsibilities, and splits their profits and losses based on the Deed of Agreement.
The registration for the Partnership in India comes under the purview of Section 58 of the Indian Partnership Act 1932 and after successfully registering a partnership firm, the owners can start establishing and expanding their business network.
Partnership Deed for Registration Of A Partnership Firm
The most crucial step of registration of a partnership firm is registering the Partnership deed with the Registrar. The partnership deed holds a particular professional format that an advocate will be able to help the firm create.
Further, the firm must draft the deed in the said format, and make a copy of it onto a stamp paper of the appropriate value.
The partnership deed must be printed on a stamp paper of Rs. 300 and must hold the signatures of all the partners.
Every partner should keep a copy of the partnership deed, while the original must be kept with the firm.
Documents Required for Registration Of A Partnership Firm
- Deed of Partnership
- Attested photocopies of ID card proofs along with Address Proof of all partners in the firm
- No Objection Certificate or NOC for own premises
- Rental agreement if the partnership is based on a rented premises
- Acknowledgement of the payment of Government fees
- Authorisation letter given by the partners
- Original signed copy of Form-1( This can be obtained after successful registration)
Step-By-Step Registration Procedure Of A Partnership Firm In Tamil Nadu
Here is a step by step guide for the successful registration of a partnership firm in Tamil Nadu-
Step-1: Drafting A Partnership Deed
Each partner of the proposed partnership firm needs to draft an agreed deed of partnership, agreed mutually by all individual partners. The partnership deed must be printed on Rs. 300 stamp paper.
This is considered the first basic document of the registration process. You can refer to the model of a draft Partnership deed from the link provided below-
https://kalkimurali.wixsite.com/website/post/model-of-a-draft-partnership-deed
Step-2: Other documents
Upon successful completion of the drafting of the partnership deed, submission of the following documents as photocopies is required-
- Rental agreement if the partnership is based on a rented premises
- Attested photocopies of ID card proofs along with Address Proof of all partners in the firm
- No Objection Certificate or NOC for own premises
- Letter of Authorisation provided by the partners
Note: The letter of Authorisation will be provided by partners to authorise a professional, as a witness for the firm and the partners, to appear at the Registrar office.
Step-3: Online Registration (Registrar Of Firms Website)
The website link for the Tamil Nadu Partnership Firm online registration form is linked below-
https://tnreginet.gov.in/portal/index.jsp?JSESSIONID=AY3On6J1yffUcbncHHfVHB+Y.portal6
- Creation Of A User ID In The Firms Website: A partnership firm has to register on the official website and must create the login credentials. Upon successful creation of the login credentials, the user has to login into the website and apply for the completion of the firm registration. The Form-1 Application form will be displayed on the website portal.
- Filling Of The Form-1 Application Form And Submission: The Form-1 application form must be filled online. All the necessary information required to fill up the application form will be on the drafted deed of partnership. Additional details required for the application form are the details of the person who are undersigned as the witnesses of the firm, such as his or her name, Date of birth, Profession, and PAN Card number of the witnessing individual.
- Uploading Of The Supporting Documents And Signing Of The Form-1 Application: The firm must upload a supporting document- the scanned copy of all the documents mentioned above. Upon successful registration of the details, the Form-1 Application will be generated. The Form-1 Application needs to be manually signed by all the partners and also by the witness-bearing firm and the partners.
The person who witnesses may take up the role as an Auditor or Notary public or Advocate or IT practitioner.
Step-4: Payment Of The Government Fees
A fee of Rs. 200 must be paid online after submission of the Form-1 Application Form. The acknowledgement form of Payment needs to be printed out.
Step-5: Submission Of Documents To The Registrar Office
After successful submission of the form online and the successful payment of the fees in the Registrar of firms portal, the final step in the step-by-step registration process is the manual submission of the documents mentioned in the portal.
Step-6: Confirmation Of Successful registration Of Firm
After successful verification of the Application and the paperwork, the Registrar of Firms will confirm the registration and the status of the firm through an email along with the Firm registration number. The registration certificate of the firm will be issued by the Department within two to three days and the time taken for the Firm registration is generally seven to ten days.
Drawbacks That An Unregistered Firm Faces
When a firm has not registered, it dilutes its right to sue another party in case of any disputes or issues. Unregistered entities cannot approach a registered firm when it comes to filing a suit against the defaulter in case of a dispute.
A firm that doesn’t hold a registration cannot file a suit against any outsider entity in any court of law or tribunal. Unregistered firms do not hold the right to leverage any legal proceedings in any court of jurisdiction within India.