Partnership Deed registration Form A

REGISTRATION PROCESS OF A PARTNERSHIP FIRM IN PAKISTAN; A COMPLETE GUIDE
February 15, 2017 Zaheer Advocate
Partnership
Registration Process of a Partnership Firm in Pakistan: A Complete Guide
Contents [hide]
1 What is partnership?
2 Numbers of Partners;
3 Types of Partnerships;
3.1 Ordinary/General Partnership/Simple Partnership Agreement
3.2 Limited Partnership
3.3 At-Will Partnership
4 How to register/form a Partnership Firm in Pakistan?
5 Registration of Partnership is not mandatory;
6 Partnership Deed;
7 Name Restrictions;
7.1 About Zaheer Advocate
What is partnership?
Partnership is relation between two or more persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
For the constitution of Partnership firm the following things are necessary:-
A business;
Mutual Partnership Agreement, express or implied, to share profits or losses of that business;
The business must be carried out by all or nay of the partners acting for all;
The Partnership Act, 1932 (hereinafter referred as to “Partnership Law” is regulated all the businesses, works under Partnership format. According to Partnership Law, the registration of Partnership firm/business is not mandatory and registration is left at the option of the partners but it is highly recommended that the partnership should be registered with registrar of Partnership under Partnership Law. The registration business is performed by the Registrar of Firms who has been given such powers under the said Act.
It does not emanate from status, it is the creation of agreement between individuals; it is a relation between individuals who have entered into agreement. The individuals bound in relation of partnership are individually called partners and are collectively called a firm.
Numbers of Partners;
In Partnership business, minimum 2 and maximum 20 partners can register their partnership firm legally. All these persons are liable for the risks and rewards of their business in accordance with their holding in the business.
Types of Partnerships;
There are three types of partner ships
Ordinary/General Partnership/Simple Partnership Agreement
In simple partnership agreement each and every partner is equally involved in all the activities of business such as anyone can present his money or anything for the purpose of investment but the liabilities are equalities divided in all the partners and the profit and loss is also divided simultaneously.
Limited Partnership
When partners are limited in their liabilities and duties then it is known as the limited partnership. In this partnership any partner can dissolve his position without any issue by the others. In this conditions the profit and loss is also limited as per the investment and liabilities.
At-Will Partnership
What is partnership at will is a very common question. This is the best partnership policy because it contained on both the above types of partnership. It is because in this partnership policy one can invest on his will, can took up liabilities as per his or her expertise and pocket. The profit is divided according to his investment and his works. In case of death or dissolution of a partner the profit will be delivered in to his family account (vary/assume partner to partner) until the firm in running.
How to register/form a Partnership Firm in Pakistan?
The Partners of the firm, themselves or through their representatives can apply for the registration of partnership under the law of “The Partnership Act, 1932”. The following document shall be submitted along with application:
Original Partnership Deed duly signed by all partners with firm stamp on the stamp paper of Rs.2000/- as well as attested with notary public/oath Commissioner.
Copy of Partnership Deed duly attested with notary public/oath Commissioner.
Attested Photocopy of CNIC of all Partners
Statement in prescribed form (Form A)
Challan of Rs.110/- deposited in National Bank of Pakistan
Blank Stamp Paper of Rs.50/-
Authority letter in favor of legal representative
Once all the above documents are ready, that shall be submitted before the Registrar of Firm of the area in which any place of business of the firm is situated or proposed to be situated.
The above documents shall be examined by the concern Registrar of Firms and if the Registrar of Firms satisfied with the correctness of the particulars given in the above documents, he shall record an entry of the statement in the Register of Firms and issue a Certificate of Registration. However, if he found any discrepancy(s) in the particulars, the Registrar shall issue notice
Any person who signs any statement, amending statement, notice or intimation under this Chapter containing any particular which he knows to be false or does not believe to be true or containing particulars which he knows to be incomplete or does not believe to be complete, shall be punishable with imprisonment which may extend to three months, or with a fine or with both
Registration of Partnership is not mandatory;
Registration of Partnership business is an option but non-registration has some consequences as Section 69 of the Act which deals with the effects of non-registration denies certain rights to an unregistered firm. Under the Act:-
A partner of an unregistered firm cannot file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act 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.
No suits 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.
An unregistered firm or any of its partners cannot claim a set off (i.e. mutual adjustment of debts owned by the disputant parties to one another) or other proceedings in a dispute with a third party. Hence, every firm finds it advisable to get itself registered sooner or later.
However, non-registration of a Partnership firm shall not affect:-
The rights of third parties to sue the firm and/or its partners.
The firms or partners in the firms which have no place of business in the territories to which this Act extends, or whose places of business in the said territories are situated in areas to which the act does not apply.
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 realize the property of a dissolved firm.
Partnership Deed;
It is noteworthy to mention here that Partnership Deed is a very important document that outlines in details, the responsibilities and rights of all partners. It just like a constitution of that business which provides a boundary to run business within, therefore it is advisable to have a correctly drafted Partnership Deed carefully detailing the terms and conditions of the business relation. The following are the main area that should be covered in a Partnership Deed:
Name of the Partners along with fresh residential addresses and designation
Name of the partnership
The place or principle place of business of the firm
The date when each partners joined the firm.
Business Objectives is one of the main area that requires proper attention. You have to clearly set out the primary business of the partnership together with any restrictions on the type of business.
Responsibilities of partnership should be clearly incorporated in the Partnership Deed.
Ratio of profit and loss.
Management of the Partnership
Capital contribution
Meeting of the partners
Financial Management and Taxation
Partners Interest
Termination of Partnership
Resignations of Partners
Resolving disputes
Duration of Firm
However, in absence of proper drafted Partnership Deed, future benefits may be negated by minor mistake which would otherwise be avoided by properly draft the terms of the partnership deed.
Name Restrictions;
A firm name shall not contain any of the following words, namely :‑“Government” “Jinnah”, “Quaid‑i‑Azam”, or words expressing or implying the sanction, approval or patronage of the Federal Government or any Provincial Government of the Quaid‑i‑Azam, except when the Provincial Government signifies its consent to the use of such words as part of the firm name by order in writing.
A firm name shall not contain the name of the “United Nations” or its abbreviations through the use of its initial letters or of any subsidiary body set up by that body unless it has obtained the previous authorization of the Secretary‑General of the United Nations in writing.
A firm name shall not contain the name of the “World Health Organization” or its abbreviations through the use of its initial letters unless it has obtained the previous authorization of the Director‑General in writing.
A firm name shall not contain any word which may be declared by the Provincial Government, by notification in the official Gazette, to be undesirable:
Provided that firm which has as part of its name any word declared by the provincial Government to be undesirable shall, within one month of such declaration, alter its name and send a statement to this effect to the Registrar.