Procedure for Registration of a Partnership Firm
2.
Under Section 58 of
the Act, a firm may be registered at any time (not merely at the time of its
formation but subsequently also) by filing an application with the Registrar of
Firms (the District Registrar, Registration and Stamps Department in the State of
Andhra Pradesh and Telangana) of the area in which any place of business of the
firm is situated or proposed to be situated.
·
Application shall
contain:-
·
Name of the firm
·
Place or principal
place of business
·
Names of any other
places where the firm carries on business
·
Date on which each
partner joined the firm
·
Name in full and
permanent address of partners.
·
Duration of the firm
·
Application shall be
signed and verified by all the partners or their duly authorized agents.
·
Application shall be
accompanied by prescribed fee as well as the following documents:
·
Certified true copy of
the Partnership deed entered into.
·
Ownership proof of the
principal place of business
·
Name of the firm
should not contain any words which may express or imply the approval or
patronage of the government except where the Government of India has given its
written consent for the use of such words as part of the firm's name.
3.
The law relating to a
partnership firm is contained in the Indian Partnership Act, 1932.
4.
Under Section 58 of
the Act, a firm may be registered at any time (not merely at the time of its
formation but subsequently also) by filing an application with the Registrar of
Firms (the District Registrar, Registration and Stamps Department in the State
of Andhra Pradesh and Telangana) of the area in which any place of business of
the firm is situated or proposed to be situated.
·
Application shall
contain:-
·
Name of the firm
·
Place or principal
place of business
·
Names of any other
places where the firm carries on business.
·
Date on which each
partner joined the firm
·
Name in full and
permanent address of partners.
·
Duration of the firm
·
Application shall be
signed and verified by all the partners or their duly authorized agents.
·
Application shall be
accompanied by prescribed fee as well as the following documents:
·
Certified true copy of
the Partnership deed entered into.
·
Ownership proof of the
principal place of business
·
Name of the firm
should not contain any words which may express or imply the approval or
patronage of the government except where the Government of India has given its
written consent for the use of such words as part of the firm's name.
5.
Under Section 59 of
the Act, when the Registrar of Firms is satisfied that the provisions of
section 58 have been duly complied with, he shall record an entry of the
statement in the Register of Firms and issue a Certificate of Registration.
6.
Penalty for furnishing
false particulars (Section 70) : Any person who signs any statement, amending
statement, notice or intimation under this Chapter containing any particular
which he knows to be false or does not believe to be true or containing
particulars which he knows to be incomplete or does not believe to be complete,
shall be punishable with imprisonment which may extend to three months, or with
a fine or with both.
7.
Any alterations,
subsequent to Registration shall be notified to the registrar:-
·
Change in firm name
and principal place of business (Section 60)--- These events shall require
sending of a new application form along with the prescribed fee, duly signed
and verified by all the partners.
·
Change relating to
opening and closing of branches. (Section 61)--- When a registered firm
discontinues business at any place or begins to carry on business at any place,
such place not being its principal place of business, any partner or agent of
the firm may send intimation thereof to the Registrar.
·
Change in the name and
permanent address of any partner (Section 62)---When any partner in a
registered firm alters his name or permanent address, an intimation of the
alteration may be sent by any partner or agent of the firm to the Registrar.
·
Change in the
constitution of the firm and its dissolution [Section 63(1)] ----When change
occurs in the constitution of the firm, any of the new, continuing or the
outgoing partner, while when a registered firm is dissolved, any person who was
a partner immediately before the dissolution or the agent of any such partner
or person specially authorized on his behalf, may give notice of such a change
to the Registrar, specifying the date thereof.
·
Under Section
63(2)---When a minor who has been admitted to the benefits of partnership in a
firm attains majority and elects to become or not to become a partner, he or
his agent specially authorized in this behalf, may give notice to the Registrar
that he has or has not become a partner.
·
Accordingly, the
various forms prescribed under the Indian Partnership Act, 1932, for the
alterations in the registered partnership firm are:-
8.
Partnership Act, 1932
does not provide for compulsory registration of firms. It is optional for
partners to set the firm registered and there are no penalties for
non-registration.
However, Section 69 of the Act which deals with the effects of non-registration denies certain rights to an unregistered firm. Under the Act :-
However, Section 69 of the Act which deals with the effects of non-registration denies certain rights to an unregistered firm. Under the Act :-
·
A partner of an
unregistered firm 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 unless the firm is registered and the person
suing is or has been shown in the Register of Firms as a partner in the firm.
·
No suits to enforce a
right arising from a contract shall be instituted in any Court by or on behalf
of a firm against any third party unless the firm is registered and the persons
suing are or have been shown in the Register of Firms as partners in the firm.
·
An unregistered 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. Hence, every firm finds it advisable to get itself
registered sooner or later.
9.
However,
non-registration of a Partnership firm shall not affect:-
·
The rights of third
parties to sue the firm and/or its partners.
·
The firms or partners
in the firms which have no place of business in the territories to which this
Act extends, or whose places of business in the said territories are situated
in areas to which the act does not apply.
·
any suit or claim or
set-off not exceeding one hundred rupees in value which, in the
Presidency-towns, is not of a kind specified in Section 19 of the Presidency
Small Cause Courts Act, 1882 (15 of 1882), or outside the Presidency- towns, is
not of a kind specified in the Second Schedule to the Provincial small Cause
Courts Act, 1887 (9 of 1887), to any proceeding in execution or other
proceeding incidental to or arising from any such suit or claim.
·
the enforcement of any
right to sue for the dissolution of a firm or for accounts of a dissolved firm,
or any right or power to realise the property of a dissolved firm.
·
the powers of an
official assignee, receiver or Court under the Presidency-towns Insolvency Act,
1909 (3 of 1909), or the Provincial Insolvency Act, 1920 (5 of 1920), to
realise the property of an insolvent partner.
10.
Rectification of
mistakes (Section 64 of the Act)
·
The Registrar shall
have power at all times to rectify any mistake in order to bring the entry in
the Register of Firms relating to any firm into conformity with the documents
relating to that firm filed under this Act.
·
On application made by
all the parties who have signed any document relating to a firm filed under
this Act, the Registrar may rectify any mistake in such document or in the
record or note thereof made in the Register of Firms.
11.
Inspection of Register
and filed documents (Section 66 of the Act)
·
The Register of Firms
shall be open to inspection by any person on payment of such fee as may be
prescribed.
·
All statements,
notices and intimations filed under this Act shall be open to inspection,
subject to such conditions and on payment of such fee as may be prescribed.
12.
Grant of copies
(Section 67 of the Act)
The Registrar shall on application furnish to any person, an
payment of such fee as may be prescribed, a copy, certified under his hand, of
any entry or portion thereof in the Register of Firms.
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