Manipur Partnership Firm Registration

Partnership and proprietorship are the two most popular forms of Indian business firms. It is very easy to set up a partnership or a proprietorship because the number of statutory compliance required by these organisations are less than the statutory compliance that is applicable to Limited Liability Partnerships (LLP) and companies. In this article, we look at the procedure for Manipur partnership firm registration in detail.

Partnership Firm

A partnership firm is a business establishment that is formed by two or more people abiding by the terms and conditions agreed in the Partnership Deed. Registering a partnership is not mandatory and it is up to the business owners to decide on the registration. On the other hand, when a partnership firm is registered, it can avail various benefits.

Partnership Firm Registration

All Indian Partnership Firms are administered by the Partnership Act, 1935. A partnership firm can be established by two or more people up to a maximum of 20 partners. In Manipur, all partnership firms have to be registered with the concerned Registrar of Firms.

Benefits of Registration

Though Partnership Firm Registration in Manipur is not mandatory, the following benefits can be obtained on registration.

Easy to Start

A partnership firm can be easily started when it is registered as it does not require any legal formalities. When a firm is not registered, certain legal benefits are restricted to the partnership firm.

Business Name

A partnership firm can select any name as long as it does not cause any violation of a registered trademark.

No Requirement of Annual Filing

A partnership firm need not file its annual accounts with the Registrar each year like an LLP or any other company.

Partnership Deed

The first step in registering a partnership firm is obtaining a partnership deed. A partnership deed is a document that contains the principles and obligations of the partners of the firm. In addition to this, the documents include the name and address of the partners, the nature of the business, place of business, duration of business, capital contribution and profit and loss sharing between the partners and the remuneration payable to partners. Other clauses that are required in the partnership deed are as follows.

Interest on Partner’s Capital, Partners’ Loan and attention have been charged on drawings.
Salaries, commissions, etc. that have to be paid to the partners.
Methods to prepare accounts and making arrangement for audits
Tasks and responsibilities, duties, powers and obligations of all the partners.
Rules and regulations that should be followed when there is a sudden demise or retirement of a partner and to add a new partner.