Doing Business in Lahore
Partnership Firm Registration in Lahore
A Partnership Firm formed under Partnership Act 1932 in Lahore under which two or more people join together to commence a business to share profit and loss. Profit and loss are divided based on written Agreement signed between the Partners, which known as Partnership Deed.
Registration of Partnership Firm in Lahore protects the legal rights of partners in case of disputes arises. In the case of registered partnership firm legal action in a court of law is taken against the convicted party found in any dispute, and this is enforceable in any court of law.
Essential Elements of Partnership Firm in Lahore
There are five crucial elements of a partnership firm which are as under;
- Agreement/ Contract of Partnership
- Limited contribution of 20 Partners
- Nature of business
- Sharing of profits and loss
Mutual activity in a partnership
Benefits of Partnership Firm Registration in Lahore
- Easy Formation
- Flexibility in Operations
- Sharing Risk of Losses
- Loan Facility
- Easy to Dissolve
Contents of Partnership Deed
Partnership Deed contains all the formal terms and conditions that are necessary for Agreement to safeguard the rights of Partners. A Partnership deed must include the following contents;
- Name of the Partnership Firm
- Detail of Partners contributing to Partnership Firm
- Address of Business Premises
- Objects of Partnership Business
- Duration of Partnership Business (If any)
- Capital contribution of Partners
- Profit and Loss percentage
- Duties and Powers of contributing Partners
- Bank opening and operating Partner
- Dissolution of the Partnership Firm
List of Document Required for Partnership Firm Registration in Lahore
- Each partner’s– Full Name, Father or Husband’s Name, Residential Address, and copy of the National Identity Cards of each partner.
- Partnership deed on stamp paper of Rs. 1000/-. A Partnership Deed is the document details of Partner’s rights and obligations participating in this Business.
- Proof of the address of the business location, usually utility bills
- If the business location has taken on, then the rent deed/Ownership document is required.
- Original Deposit Slip of Partnership Deed Fee Deposited in National Bank of Pakistan.
- Signature of all the partners on Partnership Deed along with two witnesses
Process of Partnership Firm Registration in Lahore
Some simple steps need to follow for Partnership Firm registration in Lahore as under;
STEP 1: Name Selection for Partnership Firm Registration in Lahore
The first step is to choose a Firm name that should not contain prohibited words for getting the name approved. The process of naming your Firm must be understood to save time and hassle-free. The use of a specific type of words like Pakistan, Lahore, and Co, etc. prohibited for purpose in the Name of the Firm. The availability of the name needs to checked first because few words and phrases are not allowed to be taken as part of the Firm name while registering your Firm / Business in Lahore Pakistan.
STEP 2: Drafting of Partnership Deed Agreement
A Partnership deed is a partnership agreement agreed, written, and signed on by all the partners constituting the Firm in the presence of witnesses. A partnership usually has a minimum of 2 and a maximum of 20 members who are jointly responsible for all matters relating to the Business.
The nature of Business should be mentioned clearly and must be legally upright; illegal or irrelevant objectives specified in the partnership deed result in the rejection of registration by the registrar. The profit and loss ratio needs to mentioned in the Partnership deed.
The Partnership deed must be as per Partnership act 1932, so that before preparation of partnership deed, Act should be kept in your mind or prepared by experienced people or lawyers, who know about all the relevant clauses. This Partnership deed printed on stamp paper of Rs. 1000/. All issues that can later result in a clash of opinion or annulment of Partnership must discuss in the deed.
STEP 3: Submission Of Documents For Firm Registration in Lahore
After completing the documents mentioned above, the partnership deed can register with the Firm Registrar of an area where the office of the Firm is situated.
STEP 4: Fee for Firm Registration in Lahore
Once all the required documents are collected, the application form (Form-1) is downloaded. The partnership deed prepared on a stamp paper of Rs. 1000/- and the Form filled accurately. All the partners of the Firm must sign a partnership deed. Furthermore, the Partnership Deed and Form I must be verified by the Notary Public. Registration fees should submit at the National Bank of Pakistan, and the challan form should attach to the application. The application generally processed within 3-7 working days.
STEP 5: Commencement of Partnership Firm Business
Once the Firm is registered, the Business can start after applying for National Tax Number (NTN) from FBR. If any partner wishes to leave the Firm at any point, then the amended partnership deed is prepared, and there would be a Newspaper Advertisement for outgoing Partner. Outgoing Partner will appear himself in front of the registrar and sign requisite Form.