Partnership Formation

PARTNERSHIP FORMATION

The law relating to partnership firm in India is prescribed in the Indian Partnership Act of 1932. This Act lays down the rights and duties of the partners between themselves and other legal relations between partners and third persons, which are incidental to the formation of a partnership. Thus, the Act establishes the position of a partner as well as a partnership firm vis-à-vis third parties, in legal and contractual relations arising out of and in the course of the business of a partnership firm. In this article, we look at the various aspects of running a partnership firm in India in detail.

Essential Elements of Partnership

• A partnership must be a result of an agreement between two or more individuals. (Max 50)
• The agreement must be built to share the profits obtained from the business.
• The business must be run by all or any of them representing the rest.

Documents Required for Partnership Firm Registration:

• Application form, i.e., Form 1, duly signed by the serving partners.
• A true copy of Partnership Deed enclosing the seal and signature of the concerned authority.
• Specimen of an affidavit authenticating all the information cited in the partnership deed & documents are legitimate.
• PAN & resident proof of the partners
• Copy of Rent agreement (If rented property)
• Electricity/ Water bill (Business Place)
• Copy of Property papers (If owned property)
• Landlord NOC (Format will be provided)