Meghalaya Partnership Firm Registration

In India, Partnership and Proprietorship are the most common forms of business entities adopted by MSMEs. These firms can be easily set up as the number of required statutory compliance is less than the required number of statutory compliance by Limited Liability Partnerships and a Company. A partnership firm is a business organization where two or more individuals can own by abiding the rules and regulations set in the Partnership Deed. In a firm, all partners can share the profits and the loss at an agreed rate. In this article, we look at the procedure for starting a Meghalaya partnership firm registration.

Partnership Registration

In India, the Partnership Act, 1932 regulates every partnership firm registration. The total number of partners in a firm can range from two members to twenty members. It is not mandatory to register a partnership firm; therefore, registering a partnership firm is entirely up to the firm's owners. However, after firm registration, it entitles to receive some benefits.

Need for Registration

The state's Registrar of Firms (ROF) is responsible for registering partnership firms. A firm has to be registered so that people can join to run the business and to continue with the legal bindings and share their profits according to their rules laid by them.

Required Documents

To register a partnership firm in Meghalaya, following document along with the application form

Form No. 1 application form
Partnership deed signed by all the members
An affidavit that states the partner's intention to join the firm
Rental or lease agreement of the property

Selecting Name

A partnership can select any desired name for their firm, considering the given norms.

The name should not be identical to an already existing name of a firm. This may result in conflicts and confusions between the firms.
The name should not contain terms like Crown, Emperor, Empress, Empire or terms that stand for approval or patronage of a Government.

Partnership Deed

A partnership deed is a document that contains the rights and necessities that has to be followed by the members of a firm. A partnership deed has to be given in written format since a verbal partnership deed does not add for any tax purposes. Given below are the components of a partnership deed:

Details of all the partners
Nature of the business carried by the firm
Date of commencement of the business
Partnership duration
Capital contribution of every partner
Profit and loss that has to be shared among the partners

Additional requirements in the deed are as follows:

Interest on Partner's Capital, Partners' Loan, and Interest, if any.
Salaries, Commissions, etc., if any, payable to partners.
Method of preparing accounts and arrangement for audit.
Division of task and responsibility, i.e. the duties, powers and obligations of all the partners.