How do I register a partnership company
How do partnership companies come about?
Read this article to learn more about "How are Affiliate Companies Established?"
There must be an agreement between the partners in order to do business. The agreement on business partnership can be made orally or in writing. If this is done in writing, the document containing the conditions is called the partnership deed or articles of association.
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It contains the name of the company; Kind of Store; Names and addresses of partners; Place of business and business address; Length of partnership and type of dissolution; the amount of capital contributed by each partner; the share of the profit to be taken from each partner; the type of administration; the powers of the partners; Conditions under which a partner can retire; Exclusion of partners; Introduction of new partners etc.
Registration of companies :
The Indian Partnership Act of 1932 provides for company registration, but registration of a partnership company is not mandatory. Therefore, an unregistered company is not an illegal association. However, an unregistered company suffers from certain handicaps and so registration is desirable to do business.
Registration formalities :
A company can be registered by the registrar of the local office. A declaration in the prescribed form, specially signed and verified by all partners or their agents, containing the prescribed fee, stating: the name of the company, (b) the location or headquarters of the company, ( c) the names of all other places where the company does business, (d) the date each partner joined the company, (e) the full and permanent addresses of the partners, and (f) the duration of the company.
Consequences of not registering:
An unregistered company and its partners suffer from certain disabilities due to non-registration:
1. A partner cannot bring a lawsuit (against the company or one of its partners) to enforce a right under a contract or a right granted by the Partnership Act.
2. A lawsuit cannot be brought against a third party on behalf of an unregistered company in order to assert a right under a contract.
3. An unregistered company cannot demand set-off in a lawsuit.
There are certain exceptions to the above rules.
1. A partner of an unregistered company can file a lawsuit for the company to be dissolved and for accounts.
2. Lawsuits can be filed for the realization of the characteristics of a dissolved company, even if it has not been registered.
3. The official agent or recipient can identify the characteristics of an insolvent partner of an unregistered company.
4. There is no remedy against unregistered companies and the partners in areas where the provisions on company registration are not applicable through notification of a state government.
5. An unregistered company can file a lawsuit (or set off) for an amount not greater than Rs. 100 worth, provided the lawsuit is of such a nature that it must be brought in the small cause court. Proceedings in connection with such lawsuits are also permissible, e. B. the execution of financial statements.
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