Bihar Partnership Firm Registration
Setting up a partnership firm in Bihar involves a systematic registration process governed by the Indian Partnership Act of 1932. This form of business organization allows a group of individuals to collaborate for a common profit-oriented goal. Understanding the registration process and the benefits of forming a partnership firm can be crucial for entrepreneurs looking to venture into business together.
Registration Requirements Under the Indian Partnership Act
A partnership is defined as an agreement between two or more individuals who are legally capable of entering into a contract. To qualify for registration, the following criteria must be met:
- All partners must be of legal age as per the prevailing laws.
- No partner should be legally disqualified from entering a contract.
Advantages of Registering a Partnership Firm
Registering a partnership firm comes with several benefits that are worth considering:
Simple Setup Process
The registration process is straightforward compared to other business structures like Limited Liability Partnerships (LLPs). There is no requirement for obtaining a Digital Signature Certificate (DSC), Director Identification Number (DIN), or name approval from the Ministry of Corporate Affairs. Instead, registration falls under the jurisdiction of state laws, making it more accessible.
Flexibility in Naming
Partnership firms have the liberty to choose their business name, as long as it does not infringe upon existing trademarks. This flexibility allows businesses to establish a unique identity in the market.
No Annual Filing Requirements
Unlike LLPs or corporations, partnership firms are not mandated to file annual returns with the Registrar, which can reduce administrative burdens.
Implications of Non-Registration
Failing to register a partnership firm leads to specific legal disadvantages:
- Partners in an unregistered firm cannot file a suit against co-partners or against the firm for any claims.
- The firm cannot initiate legal action against third parties.
- Partners cannot claim set-off against claims made against an unregistered firm.
Guidelines for Naming a Partnership Firm
When deciding on a name for the partnership firm, it is essential to ensure that it does not resemble any existing company that operates in a similar domain. Additionally, names that include royal terms like "Emperor," "Crown," or "Empire" require prior approval from the state government.
Understanding the Partnership Deed
The Partnership Deed is a critical document that outlines the terms of the relationship between the partners. It includes the following essential elements:
- Name of the firm and its partners
- Address of the firm and partners
- Business type
- Commencement date of the firm
- Duration of the partnership
- Profit-sharing ratios
- Capital contributions of each partner
In addition to these core elements, the deed may include provisions related to:
- Loan interest rates
- Salaries or commissions for partners
- Accounting methods
- Role distribution among partners
- Conditions relating to the retirement, death, or entry of new partners
Required Documents for Registration
To register a partnership firm, the following documents must be submitted:
- Application for registration
- Affidavit in a prescribed format
- Certified copy of the Partnership Deed
- Proof of ownership or rental agreement for the business premises
Online Registration Procedure for Partnership Firms in Bihar
The process for registering a partnership firm online in Bihar is straightforward and can be completed in several steps:
Step 1: Access the Official Website
Visit the official portal of the Bihar Registration Department.
Step 2: Navigate to e-Services
On the homepage, click on the “e-Services” tab to access various registration options.
Step 3: Choose Registration Type
Select “Society/Firm Registration” from the dropdown menu.
Step 4: Proceed to Firm Registration
Click on the “Firm registration click here” link to initiate the registration process.
Step 5: Create a User ID
Create a User ID by providing your name, email address, password, and mobile number.
Step 6: Verify OTP
An OTP will be sent to your registered mobile number. Enter this to continue.
Step 7: Login
After successfully creating your account, you will be redirected to the login page.
Step 8: Fill Application for Registration
Once logged in, navigate to the application form for firm registration.
Step 9: Document Submission
Complete the application with the necessary details and upload the required documents.
Step 10: Payment
Make the online payment as required to finalize your application.
Step 11: Get Application Number
After completing your payment, you will receive an application number, which can be used to track the status of your registration later.
Checking Application Status
To track your application status:
Step 1: Go to the Official Site
Return to the Bihar Partnership Registration portal.
Step 2: View Application Status
Click on the “View application status” option found on the homepage.
Step 3: Enter Details
Fill in the required information like registration type, certificate number, and application ID.
Step 4: Verify Status
Click on the “View” button to check the status of your application.
Conclusion
Registering a partnership firm in Bihar is a structured process that provides numerous advantages, including ease of setup, flexibility in naming, and fewer regulatory burdens. Familiarizing yourself with the requirements and following the proper procedures can pave the way for successful business operations in a partnership structure.