Partnership firms in India are governed by the Indian Partnership Act, 1932. While it is not compulsory to register your partnership firm as there are no penalties for non-registration, it is advisable since the following rights are denied to an unregistered firm:
A partner cannot file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act
A right arising from a contract cannot be enforced in any Court by or on behalf of your firm against any third party
Further, the firm or any of its partners cannot claim a set off (i.e. mutual adjustment of debts owned by the disputant parties to one another) or other proceedings in a dispute with a third party
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 information:
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".
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.
On Receipt of the above mentioned documents, we will draft partnership deed as per your requirements and set of other documents and apply to the regional sub divisonal megistrate for registration of your partnership firm.
The Sub Divisonal Megistrate will verify the documents submitted and if find in order then will issue the registered copy of the partnership deed or may call one or more of the partneres for the physical verification.
The last step will be to apply for PAN/TAN of the partnership firm as per your requirements. PAN/TAN will be delivered to the registered office with in 15 days.