Amir Pathan (none) 10 December 2015

Partnership

Hello,

i am looking to start up a new firm with partnership. Should i go with notarized partnership deed agrrement or registered partnership agrrement? and why? does this partnership is liable to form firm as private limited company? sholud i have to do another registraion for private limited company?

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5 Replies

Srinivasa Rao Yaramati (advocate) 10 December 2015

a partner shiop firm mut be a registered one

Adv. Sagar R. Jadhav (Proprietor) 10 December 2015

Partneship firm must be registered with concern ROF (Registrar of Firm) and follow all procedure for registering the same.

Anil Upadhyay (Lawyer) 11 December 2015

You have both legal options for business, that are notarization and registration of partnership deed. Registered Deed shall be treated as evidence in court, if there is any dispute in future.

Partnership Firm and Private Limited Company, both are seperate entities for business, which are formed under two separate Acts.(i.e. Partnership Act and Companies Act). You can start business with Partneship firm and if needed you can convert it into a private limited company.

Adv. Yogen Kakade (+ 91 9225510883) 11 December 2015

Hi,

There is no meaning of getting the partnership deed notarised. You will have to get the formalities of registration done specifically at the office of the registrar of Partnership firms in your city.

Adv. Yogen Kakade

Jurycon Incorporation

Advocates & Consultants

Email: juryconincorporation@gmail.com
Web: www.juryconn.in

(Guest)

Section 69 of partnership act says partenrs cant file suit in unregister partnership in court of law.

It is always better to get partnership registered. Be careful about all requieste clauses in deed since there are high chances now a days of patnership running into rough weather due to greed and ego tussles.

69. Effect of non-registration.—

(1) No suit to enforce a right arising from a contract or conferred by this Act shall be instituted in any court by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or has been shown in the Register of Firms as a partner in the firm.

(2) No suit to enforce a right arising from a contract shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the firm.

(3) The provisions of sub-sections (1) and (2) shall apply also to a claim of set-off or other proceeding to enforce a right arising from a contract, but shall not affect,—

(a) the enforcement of any right to sue for the dissolution of a firm or for accounts of a dissolved firm, or any right or power to realise the property of a dissolved firm, or

(b) the powers of an official assignee, receiver or Court under the Presidency-towns Insolvency Act, 1909 (3 of 1909) or the Provincial Insolvency Act, 1920 (5 of 1920) to realise the property of an insolvent partner.

(4) This section shall not apply,—

(a) to firms or to partners in firms which have no place of business in 8 [the territories to which this Act extends], or whose places of business in 9 [the said territories], are situated in areas to which, by notification under 10 [section 56], this Chapter does not apply, or

(b) to any suit or claim of set-off not exceeding one hundred rupees in value which, in the Presidency-towns, is not of a kind specified in section 19 of the Presidency Small Cause Courts Act, 1882 (5 of 1882), or, outside the Presidency-towns, is not of a kind specified in the Second Schedule to the Provincial Small Cause Courts Act, 1887 (9 of 1887), or to any proceeding in execution or other proceeding incidental to or arising from any such suit or claim. State Amendments

(Maharashtra) —(1) In section 69,—

(a) in sub-section (1), insert the following proviso, namely:— “Provided that the requirement of registration of firm under this sub-section shall not apply to the suits or proceedings instituted by the heirs or legal representatives of the deceased partner of a firm for accounts of the firm or to realise the property of the firm.”;

(b) after sub-section (2), insert the following sub-section, namely:— “(2A) No suit to enforce any right for the dissolution of a firm or for accounts of a dissolved firm or any right or power to realise the property of a dissolved firm shall be instituted in any court by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm, unless the firm is registered and the person suing is or has been shown in the Register of Firms as a partner in the firm: Provided that the requirement of registration of firm under this sub-section shall not apply to the suits or proceedings instituted by the heirs or legal representatives of the deceased partner of a firm for accounts of a dissolved firm or to realise the property of a dissolved firm.”;

(c) in sub-section (3),— (i) for the words, brackets and figures “sub-sections (1) and (2)”, substitute the words, brackets, figures and letter “sub-sections (1), (2) and (2A)”; (ii) for clause (a), substitute the following clause, namely:— “(a) the firms constituted for a duration up to six months or with a capital up to two thousand rupees; or.” [Vide Maharashtra Act 29 of 1984, sec. 13 (w.e.f. 1-1-1985)].