Partnership firm registration in Hyderabad very much resembles the process of registration in other states and cities of India. The most noteworthy difference is the value of the stamp paper used in drafting the Partnership Deed, and in the registration fees of the partnership firm. One of the key advantages is that such firms offer is that they permit more than one person to invest in the business. This leads to a huge number of registrations of partnership firm in Hyderabad.
Moreover, when put side by side to Limited Liability Partnerships, partnership firms require a low level of compliance and are much easier to form. Partners are not required to go through the process of acquiring separate DINs, DSCs and to complete Partnership Firm registration in Hyderabad. Furthermore, the partnership firm comes under the horizon of the Telangana Government, and not the Ministry of Corporate Affairs. Now that we know why people have a preference to go ahead with Partnership Firm registration in Hyderabad, let us take a look at the process how it’s done.
Documents Required for Partnership Firm Registration in Hyderabad
Form No-1
A copy of the Partnership deed
Affidavit indicating the partner’s permission and intention to start a partnership firm
Address Proof of the business place
address and ID proof of the partners
How to register a partnership firm in Hyderabad
The partnership firm registration in Hyderabad happens through the Stamps and Registration Department. This directly falls under the Telangana Government, and generally, the registration procedures take place through their official online portal.
Below mentioned steps are to be followed to obtain partnership firm registration in Hyderabad:
1. Before starting the registration process, the partners have to verify their proposed names to avoid any kind of infringement of registered copyright or trademark. Whilst you can register a partnership firm with a similar name, this can lead to legal trouble in the future, and should, therefore, be avoided.
2. Next step is to form a partnership deed. The partnership deed is a legal document that holds all the necessary details regarding the partnership firm and its partners. Since an oral deed has no legal value when it comes to the purpose of taxation, the partnership deed must be drafted and properly notarized.
3. A partnership deed should contain the following information and details;
Name and address of the partnership Firm
Name and address of the partners
Commencement Date of business
Nature of business
Each partner’s capital contribution
Duration of the partnership
Profit and lass sharing ratio
4. Additional clauses must include:
Procedure to conduct an audit.
Commission and Salaries paid to the partner.
Rules, responsibilities and duties of partners.
Specific rules that will be followed in case of retirement or death of partners.
Each partner’s capital and Loan interest.
5. The partnership deed must be on a stamp paper of apposite value as per State laws.
6. The partners must then visit the official website of the Telangana Government and fill the registration application.
7. Partners have to submit the below-mentioned details online;
8. All the partners have to sign the registration application.
9. The payment of the registration fees will be online on the official portal of the Government.
10. Lastly, the partners have to send the registration application along with the necessary documents to the District Registrar’s office.
11. After the documents received by the office of District Registrar, a senior officer will examine them.
12.After successful examination, an approval letter will be assigned to the District Registrar.
13.If the District Registrar is satisfied with the registration application and provided documents, the registrar will approve the registration and digitally sign the certificate of registration.
14.For tax concerns, the partnership firm has to get registered with the Income Tax Department and apply for a PAN card.
15. After acquiring the PAN, the partners can open a Current Account in the bank in the name of the partnership firm to perform business transactions.
16.The issuing of the Registration Certificate, in general, takes three days.
Conclusion
The partnership firm registration in Hyderabad comes under the horizon of the Telangana Government, and not the Ministry of Corporate Affairs. One of the major advantages is that such firms offer is that they permit more than one person to invest in the business.