How To Register A Partnership Deed In Maharashtra

Partnership firms have gained quite a bit of popularity in recent years due to their ease of formation and minimal compliance requirements. One of the most integral components of registering a partnership firm is drafting and notarising a partnership deed. The deed serves as a written agreement between partners that defines the rules, guidelines, and details regarding the partnership. As a result, the partnership deed is the most important document required to register a partnership firm. In fact, according to the Partnership Act, 1932 firms can begin their operations as soon as the deed is registered. Hence, a partnership firm can commence operations before registering the firm, as long as they have a valid partnership deed. In this article, we will take a look at how to register a partnership deed in Maharashtra.

What is a partnership deed registration?

A partnership deed serves as an agreement between two or more partners and outlines comprehensive detail regarding the business. The deed contains information about the name and address of the firm and the nature of the business. Furthermore, the deed will also contain details regarding the capital contribution of each partner and the profit-sharing ratio it will follow. Additionally, it lists details regarding all partners and also sets down the procedure to be followed in case a partner dies, retires, or the firm wishes to add or remove any partner. Further, Partnership deed registration is the process by which the partners turn their draft into a legally binding document by authorising it and getting it notarized by a public notary.

Documents required for partnership registration in Maharashtra

1. True Copy of the Partnership Deed, certified by either a CA or advocate

2. Marathi Translation of the Partnership Deed, certified by either a CA or advocate

3. Blank Stamp Paper worth INR 100 in the firm’s name

4. Authority letter is signed by all partners in case an advocate or CA is submitting the documents.

5. Moreover, covering letter with a court fee stamp worth INR 5

6. Demand Draft worth INR 1600 in favour of the Registration of Firms of your Area. Make sure you add the name of a partner and their contact number behind the DD. In case the payment was made online, a copy of the Online Payment Receipt.

7. Additionally, in case one of the partners is a company, then the company’s Memorandum and Articles of Association.

8. In case one of the partners is a Trust, then a copy of the Trust deed.

9. Further, in case the business requires additional licenses, copies of such trade licenses.

10. Address/Ownership proof of the registered place of business

Partnership registration in Maharashtra

Initially, partnership registration in Maharashtra was a largely manual process for which partners had to approach the Registrar of Firms. However, of late, the process has been transferred to an online portal to improve accessibility and ease-of-use. Moreover, the Registrar of Firms enabled the online registration of firms from 2017 onwards. After online registration, the partners have to submit the documents to a Registrar office physically. Therefore, here’s a quick look at the process of partnership firm registration in Maharashtra;

1. First and foremost, go to the official website of the Registrar of Firms, via this link- https://rof.mahaonline.gov.in/

2. Create a new user ID and profile for yourself.

3. Choose your status from between Advocate and Individual.

4. Next, provide the required details, such as name, address, contact details, and password.

5. Moreover, use your activation link to login and complete the process of registration.

6. From the home page, go to the Management tab and click on Raise Form A.

7. Moreover, duly fill the registration form, and ensure that your Marathi column is filled appropriately.

8. Next, scan and upload copies of all your supporting documents and click on Submit.

9. Additionally, you can now make the required payment via any of the following options; Wallet, Net Banking, Credit/ Debit Card, or IMPS.

10. Further, take a print out of the registration form A on any Green Ledger paper.

11. Notarise and sign the application form and upload it onto the website, along with details of the public notary who authorised it.

12. Lastly, submit the attested form and the rest of the supporting documents to the office of the Registrar.

13. The executive at the office will conduct a preliminary verification of your details.

14. Once they give the go-ahead, submit all the documents to an officer to complete the process.

15. Therefore, you will now receive an acknowledgement slip which you may use to check the status of your request.

Things to keep in mind while drafting a Partnership Deed

Here’s a look at the contents of a Partnership Deed;

1. Date of execution of the deed

2. Name and address of the firm

3. Name and address of respective partners

4. Nature of business to be carried out

5. Date of business commencement

6. Duration of Partnership

7. Partner’s capital contribution

8. Profit-sharing ratio

9. Accounting period

10. Rate of interest on loans and capital

11. Method of accounting

12. Policy regarding the appointment of an auditor

13. A clause regarding bank account opening

14. Powers, duties, and responsibilities of each partner

15. Salaries paid to partners

16. Mode of account settlement

17. Adoption of the arbitration method

18. A clause on adding or removing partners

19. A clause on winding up

20. A Clause regarding credit facility

• Once all the information is collected, and the final deed is drafted, you need to print it on a stamp paper of the appropriate value.

• Next, the Deed must be signed by all partners and two extra witnesses.

• At the time of online registration, you will have to translate this deed into Marathi.

• The stamp paper for partnership deed registration should be in the name of either the firm or the partners.

• Also, the stamp paper for partnership deed registration should be dated within 6 months of the issue.

• In case six months have already elapsed after execution, the deed must be adjudicated appropriately by the Stamp Authority.

Stamp duty for partnership deed in Maharashtra

The stamp duty in Maharashtra and the selection of stamp paper for partnership firm registration depends on the fixed capital of the firm.

1. If there is no sharing of contribution and the amount does not exceed INR 50,000: Stamp duty of INR 500

2. Fixed capital paid in cash is more than INR 50,000: Stamp duty which is the lesser of 1% of the amount of INR 15,000

3. When share contribution also includes property: Stamp Duty is levied as per clause (a), (b) or (c), of Article 25 of the Maharashtra Stamp Act. Such stamp duty in Maharashtra depends on the market value of the property.