In Pakistan, you should register a firm before you establish a partnership business. Why? because it can benefit you in many ways. Like you can gain more confidence of the general public, fewer chances of the dispute between partners, and etc.
The Partnership act 1932 governs the procedure to register a firm in Pakistan. But once the firm registration process is complete you get to enjoy certain statutory rights which non-registered firm are unable to enjoy.
Here we will explain how to register a firm or partnership? What are the requirements to register a firm? And what is the firm registration fee in Pakistan?
But before it is important to explain what is firm?
Firm or Partnership
Section 4 of partnership act explains the term Partnership;
“It says that it is a relation between persons who have agreed to share the profits and losses of a business carried on by all or any of them acting for all”
The act of the partner is called partnership but collectively their business is known as firm.
The partnership is commonly feasible where the operations of business consist of small and medium-sized. Although there is no compulsory requirement to register a firm of a partnership in Pakistan.
Nonetheless registering a partnership firm does lead to tax and litigation related consequences that are advantageous to the business.
Firm Registration Offices
The government has opened a firm registration office in almost all major cities. In these offices, an official has been appointed which is called the registrar of the firm. They are entrusted with responsibilities to issue certificates after the firm registration process completes.
The firm registration office in Lahore, Rawalpindi, Islamabad, and Karachi are successfully performing their duties.
Requirements To Register Firm or To Register A Partnership
To register a firm or to register a law firm, it is necessary to have two or more persons but not more than 40 people. Because in that case, you have to convert a partnership into a registered company.
Section 58 of the partnership act 1932 also explains the legal requirement to register a firm. These requirements are;
- Each partner’s full name, Father or Husband’s Name, Residential Address, and Occupation.
- Copy of the National Identity Cards of each partner.
- Partnership deed on stamp paper valuing Rs 1000 only. A Partnership Deed is the document containing an agreement that details the rights and obligations of each partner participating in the venture.
- Proof of the address of partnership business, usually utility bills
- If the address of the partnership business is rented then the rent deed is required
- Copy of the original receipt of the Partnership fee (Firm registration fee in Pakistan is Rs. 1000). This fee needs to be deposited at the National Bank of Pakistan, through a Challan Form under the Head of Account: C-03545 (Click here to download Challan form)
- Signature of all the partners in partnership\firm business in the presence of a registrar or an authorized officer.
Documents Required To Register Firm
To register firm or partnership business one should need these documents.
- Fill Partnership Form No. 1 (Click here download form)
- Partnership Deed on Stamp paper Rs. 1000 (click here for partnership deed format)
- Affidavit of truthfulness regarding the information on Stamp paper valuing Rs. 50.
- Receipt of Firm registration fee.
- Copy of rent deed/ lease agreement of office premises.
- Copy of Utility Bills mainly electricity bill.
- Copy of Computerized National identity card of partners and witnesses.
- Duly attested Stamp paper from a notary public.
Procedure To Register Firm
First, you need to fill Form no 1. Provide complete details. Then draft partnership deed and affidavit on prescribed stamp paper. Notarized them as well. Submit fee of firm registration attaches to its challan receipt. Prepare a complete file and submit it to the registrar of firms.
After a complete inspection of the documents, he will give you a date with is normally 2 or 3 days. After this, he will give you a certificate of the registered firm.
How To add or Remove Partner from Registered Partnership Firm
This question is asked many times how a new partner can be added to a running partnership business. If you want to add a new partner in a firm then you need to file an amended partnership deed ith affidavit of all existing and newcomer partners.
All partners will appear before the registrar of the firm and submit their statements. Then a new Form C will be issued to you.
Note: If you want to register a firm or partnership firm of any kind and you need help. We can provide you our services. Our charges are very minimal and affordable.