With the number of business firms booming in India, it is not a surprise that young Indians are inclined to start a firm and work at their own pace. To have a legal provision for the firm and grasp the advantages of the partnership deed, firm registration in Delhi is in demand.
Thanks to the digital world, the registration process has become simple and accessible to all remote parts of the country with a single click.
This article will help you understand the different types of firms, the online registration process, and the documents necessary for the registration. So let’s cover each topic one by one.
You might have come across boards referring to a law firm or an accounting firm. But is it the same as a company or an industry? No. A firm is a for-profit business run by an individual or group of persons manufacturing or selling goods and services, especially professional services.
Common examples of a firm are law firms, accounting firms, consulting firms, and others.
On the other hand, a company refers to a for-profit business providing all types of business trades and structures. An LLP, sole proprietorship, private limited, and public limited are the types of companies.
There are two types of firms that are common in India.
The Partnership Act of 1932 is the most important Act for a partnership firm. The number of partners is limited to 100 according to the Companies Act of 2013.
Whether Proprietorship or partnership firm, you need to know the in and out of the registration process, and here is where we can help. We have a team of experienced professionals, and we have assisted several firms in obtaining their Partnership Firm Registration in Delhi, thus safeguarding the business with legal binding.
A sole proprietorship is the simplest and the most common type of firm in India. It has many advantages, such as less compliance, an easy application process, and complete authority in decision-making.
The application procedure has become simple by online methods. Given below are the detailed instructions-
Before applying to the proprietorship firm registration in Delhi, you need the following documents for the application process:-
As said earlier, it is easy to get a sole proprietorship registration in India. These are the three steps to follow-
You can start your sole proprietorship firm by registering as a Small and Medium Enterprise (SME) under the MSME Act of 2006. However, it is not compulsory to register as an SME, but it can be a plus point.
Depending on the number of employees and the business type, the Municipal Corporation issues the Shop and Establishment certificate to the potential business owners. The process is different from state to state. The entire process does not require more than ten business days.
If the annual turnover of your business exceeds INR 20 lacs, it is mandatory to obtain a GST registration certificate. You can apply online on the GST portal and submit the documents. You will get the GST-IN within 3-4 days.
To ensure a smooth-running business with equal responsibilities and liabilities, you must get a partnership firm registration in Delhi.
The documents required are:
There are five steps to obtain online firm registration in Delhi for partnership firms. They are given in detail below-
The name has to be unique and not used by others. It can end with “And Company," and Co., "and Associates.” The name can include the name of the member in the partnership.
It is the most important step in the whole application process and hence, takes extra care while drafting the deed. In the partnership deed, you must furnish the details of the members, profit and loss estimation, and salary to be paid, among others. Once the draft is ready, you must execute the deed with the e-stamp and the signature of the partners.
Once you get a partnership deed, the next step is to apply for a separate PAN in the firm's name.
The Registrar of Firms (ROF) authorizes the partnership deed. You must fill out Form 1 as per the Partnership Act of 1932. Form 1 has to include all the documents mentioned above, and the notarized form is safe to authenticate the documents.
Once you complete the above four steps, you will receive the Registration certificate within ten business days. To avoid any shortcomings and errors during the registration, you can consult a trusted company to ease your efforts.
If you are based in Delhi and require a firm registration in Delhi, we can assist you with our team of talented individuals. Although the process seems complicated, we make it hassle-free to ensure your business is on the right track to going legal.
A great idea combined with hard-working minds can make a successful firm. However, it is not sufficient. To run a business, you require authorization from the governing body to secure the rights of your services professionally.
So, a partnership firm registration in Delhi will not only provide you a safety net from the encroachers but also guarantee you growth with your capital investment. There is no better way to build your firm than with legal protection.