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Partnership Firm Registration in Jharkhand

Partnership is the association of two or more persons. Partnership firm registration is not compulsory,However, unless a partnership firm is registered with the Registrar of Firms, the rights of the partners inter se or against strangers cannot be enforced in a court of law. Partnership firm are taxed separately and there is need to file separate income tax returns for your business.The major disadvantage, of course, is that the partners of a partnership firm are fully liable for the debts and obligations of the partnership. If your company is sued, then each partner will have to pay the damages and attorneys fees - and if the damages are steep, you could lose your shirt - and your house.

A limited partnership is similar to a general partnership except that the limited partners are only liable for what they put in to the partnership. Limited partners are like investors into the partnership - they can only lose what they invest. So to take the benefit of limited liability Partnership Firm.

A partnership is a business entity having two or more owners. Earnings are distributed according to the partnership agreement and are treated as personal income for tax purposes. Thus, like the sole proprietorship, the partnership is simply a conduit for directing income to its partners.

Partnership has a unique liability situation. Each partner is jointly and severally liable. Thus, a damaged party can sue a single partner or any number of partners- and that claim may or may not be proportional to the invested capital of the partners or the distribution of the earnings. This means that if the one partner did something to damage a customer, that customer could sue all the partners even though other partner played no part in the problem.

Step 1 : Draft Partnership Agreement

Step 2 : Notarized and executed Partnership Agreement and pay Stamp Duty

Step 3 : File an application with the Registrar of Firms of the area

Registration Procedure: A partnership firm can be registered whether at the time of its formation or even subsequently. You need to file an application with the Registrar of Firms of the area in which your business is located.

Application for partnership registration should include the following Documents:
1. Application for Registration in the prescribed Form I.
2. Certified copy of the Partnership deed contain following clauses :

  • Name of your firm
  • Name of the place where business is carried on
  • Names of any other place where business is carried on
  • Date of partners joining the firm
  • Full name and permanent address of partners.
  • Duration of the firm
  • The amount of capital to be contributed by each partner
  • Profit sharing Ratio
  • Admission, retirement, death of a partner
  • Transfer of shares
  • Rights, powers and duties of partners
  • Dissolution of Firm

3. Proof of ownership of the place of business or the rental/lease agreement thereof.
4. All Partners Id & Address Proof, Mobile No, Email Id and Passport Size Photograph required.
5. Every partner needs to verify and sign the application.

It may be noted here that the name of your partnership firm should not “contain any words which may express or imply the approval or patronage of the government except where the government has given its written consent for the use of such words as part of the firm’s name”.,/span>

Once the Registrar of Firms is satisfied that the application procedure has been duly complied with, he shall record an entry of the statement in the Register of Firms and issue a Certificate of Registration.

Know More About Partnership Firm

Frequently Ask Questions
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    • FontAwesome Icons
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    Find out more about using the Menu Editor in our documentation.
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    • Drag-and-drop Functionality
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