Partnership Registration

Partnership Registration

As per the 1932 Partnership Act, organization enlistment isn’t mandatory. The company does not have a separate legal identity and registration will not change this fact. However, registration is the ultimate proof of the company’s existence and its legality.

Failure to register a company has real legal consequences for partners and the company itself. Therefore, it is always advisable to draw up written articles of association and register the company in the company register. The consequences of such omission are as follows:

The company cannot bring legal action against third parties under any circumstances. For example, if a customer has failed to pay the company his obligations, the company cannot sue him if he is not registered.

An unregistered company cannot void actions against a partner for any reason (such as mismanagement, theft, etc.)

A partner of an unregistered company also cannot sue any of the other partners.

Registration procedure

As per India’s 1932 Partnership Act, there is no time limit to register a company. The company may be registered on the day of its establishment or at a later date. The required fees and fines must be paid. The procedure for such registration is as follows:

1] Application to the Registrar of Companies in the required form (Form A). Currently, this service is even available online. Such a request should contain basic information about the company, such as:

Partner company name

Names and addresses of all partners

Place of business (address of main offices and branches)

Duration of the partnership

Affiliate membership date

Date of commencement of activities

2] A duly signed copy of the articles of association (which includes all conditions) must be filed with the registrar

3] Submit/pay the necessary taxes and stamp duty

4] After approval of the application by the Registrar, the company will be entered into the registers. The registrar will also issue a registration certificate.This is how the registration process will end and the company will receive legal recognition.A partnership is an agreement in which the parties, known as business partners, agree to work together to promote their mutual interests. Partners in a partnership can be individuals, companies, interest-based organizations, schools, governments or associations. Organizations can work together to increase the likelihood that each will accomplish its mission and expand its reach. A partnership may result in the issuance and maintenance of capital or may be governed only by a contract.Partnerships represent complex negotiations for the parties involved and specific challenges that must lead to an agreement. General goals, give and take levels, areas of responsibility, lines of power and succession, how to assess and share success, and often many other factors that need to be negotiated. Once an agreement is made, the partnership is usually civil enforceable, especially if it is well documented. Partners who want their contract to be unambiguous and enforceable usually write articles of association. Trust and pragmatism are also key because you can’t expect everything to be written in the initial partnership agreement. Therefore, quality management [14] and clear communication are key factors for long-term success. Information about official partners is often made public, for example in a press release, a press advertisement or a law on public archives.While modern organizations can reinforce shared interests and quicken achievement, a few types of participation can be viewed as morally tricky. For example, when a politician engages with a company to support its interests in exchange for a benefit, a conflict of interest arises; as a result, the public good may suffer. Although technically legal in some jurisdictions, this practice is generally viewed negatively or as corruption.

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