Understanding the registration process of the partnership-based startup

Do you want to initiate a partnership-based startup? Are you aware of the registration process? If no, then do not worry; this blog would certainly help you in that direction. Even though registration of partnership business in India is not compulsory, there are several benefits you can leverage by opting to do so.

Steps by which you can register a partnership-based startup in India.

If you intend to enlist your startup as a partnership business, then you are required to follow the normal process for registering a partnership firm. It is suggested to also register your business as a startup with the startup India.

1. Registration of a partnership-based business.

Step one – select the name of the business

You will have to ensure that your partnership business name is sui generis and does not match with any existing business firms. Also, to check this, you can visit the ministry of corporate affairs’ (MCA) official website. Additionally, you can enter your proposed name of the entity in the space given and check if it is available or not.

Step two – drafting a partnership deed

The partnership deed has to include the following details on it;

– Firm and its partners’ name and address.

– Each partners’ capital contribution to the firm.

– Also, salaries/commissions or other payables to the associates.

– The ratio of P&L sharing among the partners.

– The process needs to be followed on account of the retirement/death of the partner(s) and the firm’s wind up.

– Similarly, the duties, rights and obligations of the partners.

– Other clauses as mutually agreed by the associates.

Step three – implementation of the partnership deed

Once you finish the partnership deed format, it has to be implemented. It has to be duly signed by all the associates and witnesses.

Also, stamp duty has to be paid as mentioned by the stamp act of the concerned state. The deed has to be implemented either on non-judicial stamp paper or by franking. Once the payment is made, the deed has to be notarized.

Step four – preparing the documents

You are required to make the following documents ready while registering your partnership-based business;

– Application form-1.

– Affidavit’s specimen, duly filled.

– Partnership deed’s certified true copy.

– All the partners’ PAN cards (as ID proof).

– All the partners’ voter ID/Aadhar card/passport/driving license.

– PAN card with the business’ name on it.

– GST registration in the name of the business.

– Rent agreement (if rental) and registered office’s utility bill. If it is rental, then a NOC from the landlord is also needed.

– Current bank account details in the name of the business.

Step five – filing the registration application

The RoF (registrar of firms) of the concerned state government is the authority that regulates the registration process. You are required to file the application form (with duly signs of all the partners) along with the documents mentioned above with payment of a fee to the registrar’s office.

Step six – the sanction and issue of the registered certificate

The registrar will review the application along with documents. If they are satisfied, then the authority will sanction the registration and grant the registration certificate. Then it will be forwarded to the official Email address of the business. Now, you can enjoy the benefits of the registered partnership firm.

2. Registering a startup with startup India.

Step one – Visit the official website of the startup India.

Step two – Fill in the needed details concerned with your startup.

Step three – Enter the OTP sent to your mobile number and Email.

Step four – Click submit, and your startup profile will be created.

Step five – Now, you are required to acquire recognition for your startup from the department of promotion of industry and internal trade (DPI). Go to your profile and click on the ‘dashboard’ button. And then click on the ‘DPIIT recognition’ link.

Step six – On the DPIIT recognition page, check out the registration details by clicking on view details. Fill in the asked details in the startup recognition form and click submit.

Step Seven – you are required to upload certain documents;

– PAN card.

– Directors’ details.

– Website link’s proof and pitch deck.

– Your startup’s registration and incorporation certificate.

– Patents and trademarks details (if any).

Step Eight – Once the registration is successful, you will receive a recognition number for your startup. After the successful validation of your documents by authorities, you will receive a recognition certificate. Generally, it takes up to two days after the online filings.