How to register a company, especially in the case of a partnership? As we know that an agreement between two or more persons with the aim to start a legal business for earning profit is known as Partnership.
The process in which the business name is going to be documented with the registrar of partnership firm under which the firm is carried on through legal entity is known as registration of a firm. It is the main confirmation of the continuation of the business.
In Partnership is Registration is Compulsory?
Under Partnership Act 1932, the registration of business in case of partnership firms with the registrar is not compulsory. However, if the partners want to register a company and willing to gain the payback of registration, it can be possible through fulfilling of requirements such as filling of the prescribed form and depositing the requisite registration fee.
How to Register a Company
You may easily register a company by fulfilling this process, infect registration process is divided into two parts.
- Application form
- Application Form
The application on the prescribed printed form for registration of the business is required to be submitted with the registrar of a partnership firm. The entire partners are also required to duly sign the prescribed application form. It includes the following details regarding the firm.
- Business name
- Business location
- Name of another location where business run its branches.
- The joining date of partners in the firm
- The name along with complete detail of the permanent address of the partners.
- The life period of the business
On a collection of the said application form to register a company, the registrar will examine the given detail according to the requirements. If the given information satisfies the registrar, he will register/record the name of the business in a specific register called the Register of firms. After fulfilling all the formalities a certificate is given to the partners that are called a certificate of registration.
Changes in Content after Registration
When a firm is registered and later on if any changes are required about the Business Organization name, business location, closure of the branches or any constitutional changes, they will have to compose the important changes in the official record.
Rectification of Mistakes
In case of any mistake is occur in the documents during the process of the register of a company, it may be corrected and signed by all the partners, it is necessary that such matter should be brought in the notice of registrar of firms so that later on he will rectify such mistake in the documents.
Merits of Registration of a Company
On the basis of these advantages, we should register a company.
- Terms of Agreement
One of the merits of a registered firm is that the conditions of contract which is written by an expert lawyer clear to every partner.
- Legal Document
It plays a vital role in decisions making process as everything is cleared to partners under a lawful document, in case of arising of any problem among partners, it may easily be solved under the light of legal documentation.
- Income Tax
One of the main reason to register a company is to hold relaxation in tax dues. If a company is registered, then the profit is equally divided in the middle of the partners and the tax is stimulating individually on the earnings of the partners. On the other hand, if the firm is not registered with the office of income tax, the firms have required paying a complete amount of tax and there is no compensation for them.
- Benefits to the Firm
One of the merits of a registered firm is that it helps to sue against external partners in court for the enforcement of its rights.
- Benefits to Retiring Partner
Any partner after retirement was not held legally responsible for any amount outstanding of the business. The retirement notice should be submitted by means of the registrar. Which is measured by convincing evidence of his retirement? So this is also one reason to register a company because it saves your rights in your business.
- Benefits to Incoming Partner
Registration is a firm that is all about detailed information about the registered business and can easily be available for a new introducing partner from the office of the registrar. He can easily decide accurately whether to connect with the business as a partner or deny.
On the basis of these mentioned advantages, we should register a company and enjoy all these benefits. Registration of the firm also enhances the business legality. So don’t waste your time in asking a question, how to register a company, go ahead and complete the registration process.
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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