At the same time, others want to shift their company registered office to another location by moving forward to expand their business for facilities of better opportunities and growth. 

A company can change its registered office location to another address, as per Sub-Section (2) of Section 12 Companies Act, 2013 and Rules, 2014; for an Example, a company is registered in Mysore location, but they want to shift to Bangalore where they don’t have a registered office address.

In this case, they have to intimate their Ministry of Corporate Affairs (MCA) through Registrar of Companies (ROC) in Bangalore Karnataka by filing specified forms and specified attachments like rental agreement/ lease agreement/ sale deed, utility bill, board resolution copy, etc.

The rules and regulations regarding changing the registered office according to the Companies Act 2013; that are stated in Section 12 of the Companies Act 2013. Over there it is stated that a company should have a registered office at least from the 15^th day of being an incorporated entity.

This is necessary so that it can receive all the notices and other communication that are addressed to it. It is also important for a company to submit verification of the registered office within 30 days of being incorporated to the ROC of companies (ROC). It also states that in case there is a change in the office’s location, the ROC needs to be notified within 15 days of the change.

The company in question needs to use Form INC-22 in order to notify the ROC of companies regarding the changes. The Indian government has the Companies Rules 2014 which prescribed a couple of rules – 25, 26, 27 and 28 – so that the new location of the company’s registered office can be verified properly.

Rule 27: Notice and verification of change of the situation of registered office –

Rule 27 deals with verification and notice of the change of the situation of a registered office of a company. It states that apart from having to file Form INC-22 to notify the ROC about the change within 15 days of having made the same, a certain amount of fees has to be attached to the form as well.

Sub-section (2) of Section 12 of this rule mentions the documents that have to be attached with the application as well as the manner in which it needs to be done. The documents that have to be attached should provide information regarding the office’s location at the time when it was incorporated along with any and every change in the same.

The documents that have to be provided for verifying the change in registered office address normally depend on the ownership status of the property in question. If the company itself owns the registered office it would have to provide the conveyance deed of the property in question. It is also important for the deed to be in the name of the company itself.

If the company has rented or leased the property it would have to furnish the rent agreement or lease deed. In case, it is a rented property it would have to show the rental receipts as well. It is very important that the rent receipt is not older than by a month.

If the premises have not been leased by the company and if the director or any other individual owns them the company would have to show the proof that it has the permission necessary to operate from that particular location. It could be done in the shape of a no objection certificate by the owner. It would also have to furnish copies of utility bills such as mobile phone bill, electricity bill, telephone bill, and gas bill.

It is very important that these bills are in the name of the company itself and they should also have the address that is being used by the company as its registered address.  It is also important that they are not more than two months old.

It is also important for the company to pass certain resolutions such as board resolution and special resolution in this regard. The special resolution has to be passed at a general meeting in case the registered office is being shifted to a place that is outside the local lists in that city, village, or town, where the office is located at present. The board resolution needs to be passed so that the director can be authorized to sign and then submit the Form INC-22.

3 location cases may arise during the shifting of registered office address from one place to another;

It can be categorized as follows – 

1. In the same city; 
2. Same city with different jurisdiction of ROC; or
3. One state to another state;

Shifting the registered office to a local place of same city

If a company wants to shift its registered office address to another place of same city of the state; should intimate the MCA with same details by filing the eForm INC-22.

The applicant needs to apply in Form INC-22 for getting approval to change the office address of the company. Here you have to fill this form and make attachment the necessary documents through your regional ROC.

Procedure to Change the Registered Office Address of a Company within the City of a State

1. Arrange the Board of Directors Meeting to pass the resolution for changing the Registered Office

2. File e-Form INC-22 within 15 days of passing the resolution along with the following attachment

Attachment to INC-22

1. Board Resolution
2. Rental Agreement/Sale deed/ Lease Agreement/Property tax paid receipt
3. Utility Bill
4. NOC from the owner of the premises

3. Updated in the Master data; it is straight through process

Rule 28: Shifting of registered office to a different ROC within the same state

In similar way, it has the provision as per the amendment of Companies Incorporation Rules, 2014; if the company is looking to amend its registered office from the jurisdiction of one Registrar of Companies (ROC) to another in same state; first it needs to file eForm MGT-14 and then eForm INC-22 through its regional circle, in order to receive the permission to do so from the regional director (RD). After the RD allows this change to happen, it has to file with the ROC within a period of 60 days so that it can get confirmation from there as well.

Normally the ROC confirms the change within 30 days of having filed for the same.

Procedure to Change the Registered Office Address of a Company for different jurisdiction of ROC

1. Arrange the Board of Directors Meeting to pass the resolution for changing the registered office

2. Fix the Date, Place, Timing for General Meeting

3. Pass the Special Resolution in General Meeting to change registered office address

4. File the Special Resolution with ROC in E-Form MGT-14 within 30 days of change with following attachment

1. Copy of MOA and AOA
2. Copy of notice of AGM with explanatory statements
3. Copy of resolution for change in Registered Office of the Company and alteration of MoA
4. Copy of the minutes of the General Meeting containing the details regarding the number of votes cast in favor of and against the resolution.
5. List of Creditors/ debentures holders

5. File e-Form INC-22 with the below following attachments

1. Rental Agreement/ Sale deed/ Lease Agreement/ Property tax paid receipt
2. Utility Bill
3. NOC from the owner of the premises

Changing the registered office from one state to another

In case, a company wishes to shift its registered office address from one state to another state or from one jurisdiction of ROC to another.

In this context, the company has to file the following forms to make into an effect of such changes

1. Form MGT-14

2. Form INC-23: File application form with Central Government in Form No.

3. Form INC-28

4. Form INC-22

If the company wants to change its registered office to another state then it would have to change its memorandum of association (MOA) for that. The company has to pass a particular declaration in order to alter the MOA. Within 30 days of passing the resolution it would have to file the same in the Form MGT-14 with the concerned ROC.

The company also needs to file Form INC-23 with the CG in order to get the approval necessary to change its registered office from one state to another.

For this it needs to attach documents such as a copy of the special resolution that sanctions the alteration – it should be passed by the company’s members; a copy of the MOA and the articles of association (AOA); a copy of the notice that conveys the general meeting with a proper descriptive statement; a copy of the minutes of the general meeting where the resolution that permitted this change was taken; a list of debenture holders and creditors; a copy of power of attorney or board resolution; and documents related to paying the application fee.

Within 60 days of making the application the central government will give its nod to the change and make it happen.

However, before it does that the government will also find out if this is being done in accordance with the wishes of the debenture holders and creditors. After the Indian government provides its approval the company shall file it with the ROCs in both the states where the new and the old registered offices are. The ROC of the new office location would register the same and provide the applicant a new certificate of incorporation.

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Also Read:

Procedure to Change the Name of a Private Company

Procedure Involved to Incorporate a Compnay in India

Guideline to Choose the Name of a Compnay

Get Chartered Accountant Services in Bangalore

We all know that India is heading towards the business hub where it stood amongst the top 5 countries in the world in terms of startups; so startups scenarios are increasing day by day since from 2014 and they are building the Startup Ecosystem stronger than strong. India is creating a better platform for budding entrepreneurs’ as well as nation’s growth and development.

As per NASSCOM’s report, India will be the homes of 10,500 startups by 2020, so more than 65 percent of startups are already incorporated in various cities like Bengaluru, Delhi NCR, Mumbai, Hyderabad, Ahmedabad, Chennai, Pune and Jaipur as on 2017. A creative thinker can be a part of this to go ahead of his/her career by passion and innovative thought. And apart from this, import or export business is in race with this sector.

Before you jumping towards the import export business, you should cultivate about it properly, see the horizon and go through the deep thought and think about it, really do have I the experience, skill and talent to give the new direction to my business towards the land of new opportunity? Yes, of course, I am the right person to carry out the business into my goal.

What is Import Export Code (IEC)?

Importer Exporter Code is shortly called as IEC is allotted to a person or business owner for importing goods/products into or exporting goods/products from India. It is a must required license for an every organization where those are going to start an import export business in India.

Import Export Code is a code which consists of 10 digits of alphanumerical numbers granted by the joint DGFT (Director General of Foreign Trade) office of India under the Ministry of Commerce and Industry to the authorized business entity/person/company for carrying out the import export business in Bangalore Karnataka or any cities in India or abroad. This is the first legal proof to run your business smoothly under the loving governance of legal department.

Features of Import Exports Code Registration

When you get registered your import/export business, you will get benefits from DGFT, Customs, Excise, Export Promotion Council, Foreign Trade Policy and etc. and here you can follow the below important features and benefits of IEC (Import Export Code).

• This IEC certificate is the first most document proof of a firm/ proprietor/ partnership/company for carry out the importer and exporter business.
• IEC code license is the primary document for recognition to the Government of India as an Importer/Exporter
• It is most required to obtain IEC before running your business. Means you cannot import goods and services from India without the legal consensus.
• A sole proprietorship can also obtain IEC code on his/ her name, but not necessary to setup a business for the same.
• Once IEC is issued, it has valid for a lifetime. This means that, it does not need any renewal during your business period.
• Giving a quotation for IEC is must required when you are importing or exporting goods/products in India.
• Import Export Code (IEC) is mandatory for making international or foreign bank transfer during the business process activities.
• No taxes for exporting goods from India and also gets various incentives on export.
• Some cases, government even waive the import duties, if you are promised to export the goods within a limited time frame.
• IEC code is legal and valid for all branches of your import export business.
• IEC is not mandatory for government or personal purposes.
• IEC certificate holder doesn't require filing any returns and compliance.

Opportunities available for export and import business in India

As such imports/ exports businesses can form an integral part of the country’s economy as well as self and organizational growth and development which would create employment facility for young talented individuals. It means that in this particular domain plenty of opportunities are waiting there at doorstep of budding entrepreneurs. Just it needs to require the innovation thinking for this sector.

However, now this world is changing rapidly and no country in this world can exist without interacting with other countries and import and export might be form an important part of said interaction. As and when you get into this business there are plenty of opportunities that you can explore.

Here you can see the top 10 import export business ideas, which can creates door for innovatives entrepreneurs

1. Electronics and Electrical Products

2. Pharmaceutical Products

3. Vehicles & Machinery Products

4. Crude and Petroleum Oil

5. Iron & Steel Products

6. Warehouse as Shipping and Receiving

7. Organic Products

8. Cotton Materials or Cotton

9. Natural or Cultured Pearls and Stones

10. Copper Made Products and many more

Looking at the online marketplaces

These days, there are plenty of online sellers such as Amazon, Alibaba, Allexpress, and DHGate to name a few. Here on these sites, as an exporter and importer, you can get listed as a vendor, and then you would be connected to buyers around the world. In this case, the internet would be playing the role of a bridge. This way, you would be exporting your products to your customers who may be thousands of km away from you. This would also open up the international markets to you.

Steps to Start an Importer or Exporter Business in Bangalore

The first step is that you need to take action in order to start an import export business in India; is to have a proper business set up. You should ideally start a sole proprietorship and for this you can get a VAT (value added tax) registration or get registered for service tax as well. You should also have a name and a logo for your business. And after this, you need to follow the certain steps to land your business in a perfect way such as

1. Getting PAN for your business

2. Starting a Current Bank Account in the name of your business

3. Getting Import Export Code from DGFT department

4. Getting RCMC from export promotion councils

Here the steps are summarized below to start an importer or exporter business in Bangalore Karnataka or any other cities in India.

1. Getting a PAN (permanent account number) card for your business

Once you have received the abovementioned registration you should get a PAN card for your business from the income tax department. This is mandatory.

2. Starting a current account

Once you get your business registration followed by the PAN card you would have to start a current bank account. You would need to open this account at a commercial bank. It would be done solely for business purposes.

3. Getting the import export code

The next step in this regard would be to get the import export code (IEC). As far as opening an import and export business in India is concerned this happens to be one of the most important requirements. In fact, you would need the IEC in almost every case with the exception of prohibited and restricted services and goods.

In order to get the IEC you would have to apply straight away at the website of DGFT (Directorate General of Foreign Trade) wherein we explained it below thoroughly in “how to apply IEC online” para. The documents that you need to provide in order to get the IEC are: (a) your personal PAN card or the one that you are using for your company, (b) your photograph, and (c) a copy of a cancelled check from the current account that you are presently maintaining for your business. You should remember in this context that it is mandatory to have a PAN card in order to get this code and you will get only one code for each PAN card.

4. Getting the RCMC

Once you get the IEC you would have to get the RCMC (Registration Cum Membership Certificate). These are provided by the export promotion councils. They help you get authorized for imports and exports as well as all other kinds of benefits. India has almost 26 export promotion councils that can provide you an RCMC. Once you have got the RCMC and IEC you would be able to start your export and import business from India as well. The IEC and RCMC are accepted in all businesses and their branches across the country.

Normally, it takes around 5 to 7 days to get all the registrations out of the way.

How to Apply for Import Export (IE) Code Online in Bangalore?

To apply for import export code registration in Bangalore and getting the registration certificate; you must have to follow the online procedure and for this matter, we can help you to obtain your IEC certificate smoothly. This IEC application process is completely based on online; it depends upon your regional authorities (RA) area, from where you want to obtain your importer exporter code (IEC) number.

By applying through the proper requisite, you must have to go for online and log on to the official website of Directorate General of Foreign Trade; which comes under the Ministry of Commerce and Industry, Government of India and ready to apply IEC online in India.

Here we explained briefly the application procedure for obtaining import export code, have a look on it and get an overall idea about IEC registration in Bangalore, Karnataka or any other cities in India and get your IEC Number from the specific joint regional directorate foreign trade department.

Now we are taking you to the online application process of IEC, when you visit the above mentioned site you can find a Menu Bar on top of the site which carries various menus for its operation. For online IEC application go to “Online Application” menu Tab, otherwise you can do it directly by going to Quick Links section both are same processes.

Below that you will find Importer Exporter Code (IEC) through which you can apply for it so rightly and see the below steps for import export code registration process.

Setp-1: Go to http://dgft.gov.in website; move your mouse to “Importer Exporter Code (IEC)” link, under from the Quick Links segment, then click on “Online IEC Application” for fresh application.

Step-2: When you click on the “Online IEC Application”, it is promptly landed to the “Login for IEC Online” page with displaying Enter Your PAN box.

Enter your or company PAN number and click to NEXT button. Then it will display MOBILE and EMAIL ID box in addition to your given PAN number. You have to fill that Mobile Number and Email Id box and click on GENERATE TOKEN button verifying with the captcha code.

After clicking on GENERATE TOKEN button, in same dialog box you will find “Mobile Token” and “Email Token” blank field and a message has already came to your given Mobile Number and Email ID bearing with Mobile Token and Email Token. You have to fill this two box and click on the SUBMIT button with verifying the captcha.

Step-3: After clicking on SUBMIT button, you will be directed to Importer Exporter Code (e-IEC) window and here you see the left side bar of the window and click on IEC Master and fill the Fresh IEC Application form with required data. And submit it.

Step-4: Go for side bar and click on the Branch menu that just down to IEC Master. Fill the form if you have any branches, otherwise you can leave it.

Step-5: In step five, click on Director Link from side bar and fill all the data regarding to Proprietor/ Designated Partner/ Director of the company and submit it.

Step-6: Click on Appl. Fee link from same side bar and make a payment here of Rs. 500 online.

Step-7: Click on Verify Fee link from same side bar, if your payment is done it will be verified automatically.

Step-8: Click on Attachments link and here you will have to attach Photo in GIF format, PAN card and Cancelled Cheque in PDF format.

Step-9: Click on Checklist link and it will show a list of information that you have to choose Yes or No option according to your uploaded information.

Step-10: Click on Preview link to check what information you have given here and it will display all your given data in ANF-2A form.

Step-11: In step eleven, click on Print Appl. link and take the physical copy of application; in which this will have to submit in your Regional Director General of Foreign Trade department office.  for further use

Step-12: Click on Submit (Dig. Sig) link, here you must required a Digital Signature to proof the identification of the applicant.

Step-13: Last step is Appl. Status; here you can check the progress of your IEC application status. By verifying your

Documents required for import export code registration in Bangalore Karnataka

For a smooth and continuous registration process, keep the following documents details in your hand and be ready

• Digital Photograph of the Signatory Applicant
• Self attested PAN card copy of the applicant (Proprietor’s or Company’s or Partnership’s PAN card in case of proprietorship or company or partnership)
• Bank Certificate
• Details of your bank account
• Copy of Passport/Voter ID/Driving License/Aadhaar Card
• In Application form your signature must be there on every page
• Company Incorporation Certificate
• MOA/AOA or Partnership deed

After completion of all your process you will get your IEC certificate by speed post or courier from the department of DGFT within 3 to 7 days.

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One of the measure things of a company is that after getting huge name and fame, if they think we are doing well, competing with the world brands and our name should be unique one; they can go for this. Company Names can also be changed when the aim and objects of the Company they want to change, if any name of the activity included in the name.

Here you can take a look at the examples of some big brand companies that originally had different names but changed to new one.

For example: some famous companies have also changed their original name to new distinctive one like, BackRub to Google, Brad's Drink to Pepsi, Blue Ribbon Sports to Nike, PC's Limited to DELL, Computing Tabulating Recording Corporation to IBM, Jerry's Guide to the World Wide Web to YAHOO and etc.

No matter what the objective is, a private limited company can change its name but for this at it needs. At the very least, the approval of its shareholders is must required. Apart from that, such a company also needs to get necessary permission in this regard from MCA (Ministry of Corporate Affairs). It also needs to be noted in this regard that the name change of a private limited company does not have any effect as such on its existence as a legal entity.

So before you change your company name, you need to follow the process that holds all the key points and prospects which carry out the whole process for changing the company name. Here are the following steps to lift up your spirit for name change.

These 6 steps are involved in company name change process:

1. Hold Board Meeting and Pass Board Resolution for Name Change
2. File INC-1 to MCA for Name Change Availability
3. Pass Special Resolution in EGM for Name Change and File MGT-14
4. Application to ROC for Name Changing in INC-24
5. If ROC satisfied with your application, then Registrar will issue a new Incorporation Certificate in INC-25
6. Make Changes in Company MOA and AOA

In short, we explained here below the name changing process of a company where you can gather the overall idea for your knowledge base.

1. Passing a board resolution

The first step is that you need to take in order to change the name of your private limited company is to take a resolution regarding that effect at the board of directors’ level. For decisions such as these a board meeting has to be called so that a resolution to change the name of the company could be passed.

At the same meeting a director needs to be given the necessary authority to apply to MCA. This is done to check whether the proposed new name is available or not. The same board meeting can also be used to take a decision in order to call an extraordinary general meeting, where the name of the company would be changed and alterations would be made to the MOA (memorandum of association) and AOA (articles of association).

2. Checking if the name of a company is available or not

Once a company passes a resolution whereby the proposed new name is said to be available the director, who has been authorized to do so, can apply to MCA in order to procure said name. The procedure that is followed over here is the same as the one, which is followed when a private limited company is incorporated.

This means that the new name must be decided on according to the guidelines that have been set in the naming guidelines of the Companies Act, 2013.

3. Passing a special resolution to change the name of a company

As soon as approval for the name can be procured from MCA the company needs to organize an extraordinary general meeting yet again. This needs to be done in order to pass a special resolution in order to change the name of a company. In this meeting some necessary changes also need to be made to MOA and AOA as well.

4. Application for approving the name change of a company

Once a company has passed a special resolution in order to change its name it must file an application with the Registrar of Companies whereby it seeks approval for changing its name. This application needs to be made in Form 1B and the necessary fee needs to be paid along with it as well.

5. Issuing a new certificate of incorporation

Upon being satisfied with the application for changing the name of the company the Registrar of Companies (ROC) will issue a fresh certificate of incorporation. When this certificate is issued, it can be said for sure that the process of name change is finally complete.

6. Making changes to the AOA and MOA

After the new certificate of incorporation has been issued, this steps have to be taken so that the new name could be incorporated properly in each and every copy of MOA and AOA.

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Guideline to Choose a Company Name

You need to Know About MOA and AOA

What is DIN and Its Necessity in Company?

What is DSC and Why is it Important?

New Company Registration Procedure – Jan, 2018

Highlights on ZERO Government Fees for Company Registration

To know more details about the budget Click Here for Full Report

New Company Registration Process – 2018

The Ministry of Corporate Affairs (MCA) has now made it simpler for you to register your company and limited liability partnership (LLP) from 26 January 2018, which incidentally also happens to be the 69^th Republic Day of the country. This can easily be called a giant step of sorts even as the government has rolled out a number of process changes to make it happen. The government is now letting you incorporate your company without any fee. This is part of a new service named Reserve Unique Name (RUN). Now there is no need any longer for you to file a form or even use a DSC (digital signature certificate) as such.

Thanks to this program you would also be able to file the e-form named SPICe without DIN (director identification number). Apart from the fact that the entire process has been made a lot simpler and there is no fee involved in the same the new process takes a lot less time as well.

RUN Form

Now, you can incorporate a company without seeking prior approval for the name or even using the SPICe form as such. And now, we want to inform one thing that the name will be reserved for 20 days as per new rule; however, earlier it was reserved for 60 days and this is a point that they reduced the time period of name reservation for a company to make the business do faster and easier with greater degree of simplifying process. As part of SPICe the incorporation certificate is only provided if MCA approves of the name of the new company.

Now, if you, as an entrepreneur, want to incorporate a company with a name that is unique you can do so for filing directly for incorporation by using the SPICe form. As has been said already, this will help you save plenty of money and time. If an entrepreneur however wishes to incorporate a company that has a name, which is same as that of a company that already exists, an existing trademark, or a current LLP, then they can do so as well but they would need to get the permission of MCA in order to be able to use that name.

What happened before RUN was introduced?

Before RUN (Reserve Unique Name) had been introduced companies had to apply to reserve their names through Form INC-1. At the most they had six choices from which they needed to pick their names. Applicants also needed to furnish at least one DSC and a brace of DINs.

How will the process be now?

Now, thanks to RUN; companies would be able to reserve their names only one in a shorter span of time and with a greater degree of ease process. Even they (entrepreneurs or business owners) would be able receive the name approval before they have received their DSC.

However, the applicant would not be able to opt for more than one name at a time. Right now, companies need to pay INR 1000 for reserving the name of their company using the web form RUN. Each and every time they do this; they would have to pay said amount. It does not really matter if the name has received approval or not. So we suggest that before applying for a name, you may like to be familiar with the Companies (Incorporation) Rules 2014, as amended, and conduct your own Name and Trade Mark search; for which you might not be pay again and again for acquiring the company name.

In order to apply for a name a company would first need to open an account at the MCA website. After that they would have to choose the kind of company that they wish to register and then they would have to provide their chosen name.

After this, they would have to check the name with the database of LLP and company names at the disposal of MCA. It needs to be noted in this context that the MCA database would run a check only to see if a proposed name is exactly identical to a company or LLP that already exists. However, as per the rules and regulations mentioned in the Companies Incorporation Rules, 2014 the proposed name of a company cannot even be similar to an existing one, let alone be an exact replica.

Here we are just showing you an overview of company registration process in present days as related to earlier days and from this you will get a basic knowledge on previous and recent process

Take a look on the new company registration process as on Jan, 2018

1. Get Name Approval from MCA by using RUN service

2. Obtain DSC (Digital Signature Certificate) from any Certifying Authorities (CA)

3. State Stamp Duty Fees

4. Incorporate Company with DIN, PAN & TAN with the help of SPICe e-Form

5. Appointment Directors, CEO, CFO to the Company

Here’s a quick look at earlier company registration process before 2018

1. Obtaining DSC

2. Obtaining DIN

3. Get Name Approval from MCA by filing INC-1 Form

4. Upload Various Forms in MCA using Spice

5. Certain Stamp Duty Fees

6. Company Incorporation Certificate along with PAN and TAN

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Also Read:

Highlights on New Company Registration with Zero Fees

Procedure Involved to Incorporate a Company in India

In India the Indian Partnership Act, 1932 governs the partnership firms. A partnership firm has been defined clearly in Section-4 of the act where a partnership has been said to be the relation between individuals who have consented to sharing the profits accrued from a business. By definition, this essentially must be a business where they are all involved to various extents.

Thus, if we go by the above definition, there are five things that should definitely be there in a partnership firm – a contract; the contract should be between at least two people; they should agree to do business together; they should have the common aim of sharing the profits; and they should all be involved in that business.

Contract for a partnership

Any and every partnership happens because there is a contract to that end. It does not happen because of factors such as status, inheritance, or operation of any law as such. This means that in case a partner in such a company passes away his or her daughter and son can definitely lay claim to a certain share in the property owned by that partnership but cannot become a partner immediately. For that she or he needs to enter a similar agreement that her or his deceased parent signed on.

The maximum number of partners in such a company

Normally, the highest number of people that can be there in a company such as this one is 20. A partnership is basically the aftermath of a contract and as such you need a minimum of two people to start one.

There is nothing mentioned as such in the Indian Partnership Act, 1932 regarding the highest number of people that can be there in a partnership.

However, the Companies Act has stated that you cannot have more than 10 people in case of a banking business and more than 20 in case of all other kinds of businesses.

Advantages of a partnership firm

One of the biggest advantages in a partnership is that the risk factor is always divided since there are plenty of people involved in the same. It is always easier to establish a startup as such since it does not cost you a whole lot of money to start one. Since there are more people pooling in money in a partnership; such a firm always has easier access to capital. It is also easier to borrow as a partnership because the capacity is much better.

With a partnership you can easily make a highly skilled employee your partner. There is always the possibility that you would be able to split your earnings. As a result of this a partnership is able to get tax related benefits as well.

How to register a partnership firm?

The first thing that you need to do in this regard is choose a name for your partnership firm. The next step is choosing a partnership deed or agreement. For this you can seek the help of professionals who specialize in work such as this.

The third step that you need to take in order to register a partnership company is to apply for a PAN (permanent account number) card, which will be issued in the name of your partnership firm. Once you get a PAN card, as well as the registered partnership deed, you need to open a current bank account for your partnership company.

There are certain documents that come in handy in cases such as these. The first of them is copy of an address proof cum ID card such as PAN card, Aadhaar card, voter ID card, and driving license of the partners.

Steps are taken for partnership firm registration in India

Here are the key steps we took to register a Partnership Firm in Bangalore, Karnataka or any other cities in India; to accomplish this, you need to follow the below 4 steps:

1. Select Your Partnership Firm Name
2. Draft the Partnership Deed/Agreement
3. Apply for PAN Card
4. Open a Business Current Account

Accordingly, here we explained briefly the steps of partnership registration; take a look over at this for gathering a little knowledge.

Step-1: Choose a Suitable Name of Your Partnership Firm – The partners have the right to choose a correct name for their business, cause they are the owners of the company and before choosing partnership firm name, they should keep it in mind that the name should not be violate the rules and regulations of Indian Partnership Act, 1932; according to the Section 58. And the name should not be identical to the existing one, otherwise it will be crucial to get name approval from District Registrar of Firms.

Step-2: Draft/Form a Partnership Agreement or Deed with the Help of Experienced Consultants – Partnership Dead/ Agreement/ Contract is a primary legal document which carries the objectives of nature of the business, capital contributed by each partner and their rights, roles, responsibilities and obligations to the firm, Managing Partner, registered office address, and etc.

To produce a partnership agreement or deed, you need to visit your nearest regional Sub-Registrar and register the Partnership Deed. Remember, partnership deed has to be notarized and it requires a stamp duty. The minimum value of stamp duty for partnership agreement/deed in Bengaluru Karnataka is Rs. 2000 and it varies from state to state as per their States Government Rules.

After verifying all the details of the Partnership Deed and partners documents, if the Registrar is being satisfied with your novelty then he shall enter your record of statements into Register of Firms and issue an acknowledgement of registration for your Partnership Firm, according to the Section-58(1) of the Indian Partnership Act.

The essential characteristics of Partnership Deed Agreement are as follows:

• Minimum number of members is 2 and maximum 20 as Indian Partnership Act.
• Partnership firm it stands on contract as operation of the law or inheritance.
• The partnership firm business should be carried on by al the partners or anyone acting them for all.
• The partnership firm registered to carry on the business and share the profits as per agreed in the partnership deed.

 Required below mentioned details while preparing the Partnership Deed is as follows:

• Names of the firm
• Registered Office address of the firm
• Nature of business of the firm
• Address of partners
• Capital contribution by the each partner
• Profit sharing ratio among the partners
• Interest on capital, if any to be paid to partners
• Loans and advances by partners to the firm
• Who is the Managing Partner
• Who will be the auditor of the firm
• Whether or not to pay salary or commission to partners.
• Methods of Maintaining bank accounts
• The mode of admission and retirement of partners
• How to manage or adjust the value of goodwill on admission, retirement and death of a partner during the business process
• Introduce provisions for arbitration to solve the problem in case of disputes arise
• Specify the methods of dissolution of your partnership firm
• Mention the settlement procedure of accounts between the partners, in case firm dissolution happens
• Who is the sleeping partner and benefits, if any

Step-3: Apply PAN card online for Partnership Firm – After receiving Acknowledgement of Registration of firm or Certificate of Registration for partnership, you can proceed to apply PAN for partnership firm.

Documents required for applying PAN card for partnership firm

• Copy of Partnership Deed/Agreement.
• Copy of Certificate of Registration of partnership firm issued by Registrar of Firms.

Step-4: Open a Current Bank Account for your Company based on the Firm PAN card and Registered Partnership Deed – You can apply for a Current Account for your partnership firm with the help of PAN card, Partnership Deed and  Certificate of Registration where all the transaction of firm accounts are to be kept here for future financial purpose.

Documents required for applying Current Account for partnership firm

• PAN card of the Partnership Firm
• Certificate of Registration of Partnership Firm
• Copy of Partnership Deed

The minimum essential documents required for Partnership Registration are as follows:

• Self attested PAN Card of all the partners.
•  Self attested Address Proof – Aadhaar Card/Voter ID/Driving License/Passport of all the partners
•  2 passport size digital photographs of each partner.
• Rental agreement of office address from the owner of the building
• Electricity bill of office address, which is not older than 1 month; if rented premises
• Take No Objection Certificate (NOC) from the owner of property/building for official context.
• Received BBMP tax paid receipt copy

Partnership firm business is the most popular type of business organization in India since the early days of business because it is easy to form, has no complicated legal formalities and less compliances as compared to private limited company, limited liability partnership and one person company. But each and every business entity has the special unique features to carry out the business.

Whenever entrepreneurs or the innovators are thinking about to setup a business entity, they are more likely to intend to start a partnership business rather than others; because it creates more trustworthy to their clients for its bonding nature and characteristics.

Only two partners of the company can run the business; if they want to grow their business, they can add more partners and invest capital to expand their business by implementing with some creative ideas and better customer services. Journey starts from here towards your goal.

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Also Read:

Procedure and Steps to Incorporate a Company in India

New Company Registration Procedure Through RUN Service