How is a partnership firm registered in Uttar Pradesh, and is registration compulsory?

Why register

Under section 69 of the Partnership Act, an unregistered firm:

• cannot file a suit against a third party to enforce a contract;
• its partners cannot sue the firm or each other to enforce rights under the deed.

It can still be sued, and can still do business. Banks and government departments often ask for the registration certificate.

Before applying

1. Partnership deed: on non-judicial stamp paper of the value required under the Uttar Pradesh stamp law, signed by all partners and notarised. It should state the firm's name, business, place of business, capital, profit-sharing ratio, interest and remuneration to partners, and the terms for admission, retirement and dissolution.
2. PAN for the firm, and a bank account in its name.
3. Proof of the place of business: ownership document, or a rent agreement with the owner's NOC.

Applying in Uttar Pradesh

Applications are made to the Registrar of Firms, Societies and Chits for the district where the firm's principal place of business is, through the state's online portal. The application gives:

• the firm's name and principal place of business, and other places of business;
• each partner's name, address and date of joining; and
• the duration of the firm.

It is signed by all partners and verified, with the deed, identity and address proofs and photographs uploaded, and the prescribed fee paid. After verification, the registration certificate can be downloaded from the portal.

Later changes

Changes in the firm's name or place of business, and partners joining or leaving, are reported to the Registrar so that the register stays correct. A partner who retires should make sure the retirement is recorded, or they may remain liable to third parties.

Tax and GST

• Income tax: the firm is taxed whether or not it is registered, provided there is a written deed. See how a firm is taxed.
• GST: the firm registers in its own PAN if it crosses the threshold.