Partnership Deed

A partnership deed is a legal document that outlines the terms and conditions of a partnership. It includes details such as the rights and duties of partners, the distribution of profits, individual capital contributions, and the partnership's duration.

This document is significant as it helps prevent misunderstandings and conflicts among partners by clearly defining their roles and responsibilities. Moreover, it serves as proof of the partnership's existence and can be used in legal proceedings to resolve disputes.

Who Can Be a Partner in India's Partnership Firms?

To become a partner in an Indian partnership firm, you need to meet these conditions:

• Mental and Legal Fitness: You must be mentally sound, not underage, not insolvent, and not legally prohibited from making contracts.
• Registered Partnership Firms: A registered partnership firm can partner with other firms or businesses.
• Head of a Hindu Family: A Hindu Undivided Family (HUF) leader can be a partner if they contribute their own skills and labor to the partnership.
• Companies as Partners: Companies, considered legal entities, can also be partners if their objectives permit it.
• Trustees of Specific Trusts: Trustees of private religious, family or Hindu trusts can partner unless their rules explicitly prohibit it.

Procedure for Partnership Firm Registration

The procedure for partnership deed registration is explained in detail below:

Obtain a Digital Signature Certificate (DSC)

Obtain a DSC for all partners. This electronic signature is necessary for online document signing and can be acquired from a certified agency.

Obtain a Designated Partner Identification Number (DPIN)

After securing the DSC, partners must apply for a unique DPIN. This identification number is required for all partners and can be obtained through the MCA website.

Choose a Name for the Partnership Firm

Select a unique name for the partnership firm, ensuring it is not identical or similar to any existing company or LLP. It must also comply with legal naming regulations.

Draft the Partnership Deed

Create a comprehensive partnership deed outlining the terms and conditions of the partnership. This document should include the firm's name, partner names and addresses, business nature, profit-sharing ratio, and the partnership's duration.

Application for Registration

Partners must apply with the Registrar of Firms, including firm details, partners' names and addresses, and the duration of the firm.

• The name of the Partnership Firm
• The principal place of business
• The location of any other sites where the firm carries on business
• The date of joining of partners
• The names and addresses of the partners
• The duration of the firm

Obtain the Certificate of Registration

Following verification by the Registrar of Firms, If the Registrar is satisfied with the application, a Certificate of Registration will be issued to confirm the partnership deed registration. This certificate proves the firm's registration with the Registrar of Firms.

Apply for PAN and TAN

Apply for a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. These numbers are essential for tax-related matters.