Procedure to Register Law firm in India

Author – Priya Sharma

Procedure to Register Law firm in India, basically the first thing that a person requires to set a law firm is the age of 21 years old and shall have a law degree from recognized university of India or a university of foreign by the Bar council of India. Every state has its known bar council so after getting a degree from recognized university person needs to register him/herself with any state Bar council of India.

REQUIREMENTS NEED TO CONSIDER BEFORE REGISTRATION:-

While doing any we need to consider some factors so accordingly at the time of registration of a law firm there are some factors which a person from legal background needs to understand and also take them into consideration before he/she Plans to set up a law firm and register into it. These are some of the essential conditions which a person needs to follow for the establishment of the new firm.

• The first most important point to consider is that in limited liability partnership the personal assets of the partners cannot be sold but in the sole proprietorship the individual’s personal assets can be sold. As they can be used to repay the debts of the business.
• In sole proprietorship all the functions of management, like decision making, financing, records keeping, tax bearing shall be done by the single person. But in the partnership firm all the works are divided according to the specialization and tax would be paid by all the partners.
• In sole proprietorship the burden of entire management is on the single person he/she by their own shall take all the decisions and shall act as per that only. But in the partnership firm all the partners can give their personal opinions as different people have different opinions that can lead to specialization in the work but can also lead to conflicting decisions.

 DIFFERENT TYPES OF LEGAL STRUCTURES AND THEIR REGISTRATION:-

• Sole proprietorship
• Partnership
• Limited liability partnership

Sole proprietorship: – is a business managed and operated by a sole proprietor he/she does not get the benefit of limited liability and in the recovery of the loan amount the personal assets of the sole proprietor can be used.

There is no formal procedure in the registration of a sole proprietorship law firm in India it can be simply obtained by opening the bank account in the name of proprietors firm or by obtaining the license for conducting the business.

To open a current bank account couple of things is needed:-

1. Service tax registration.
2. Letter verification from CA regarding the nature of the business.
3. Your letterhead with the firm name and firms address.
4. Stamp in the name of the proprietorship.
5. Address and the ID proof of the proprietor it include it’s both addresses office as well as resident for proof.

Now the next is PAETNERSHIP FIRM:-

WHAT DOES PARTNERSHIP MEANS?

So basically partnership consists or have two or more people who by themselves own and run the firm. Partnership may be in two ways i.e general or limited and they are generally governed by an agreement that also sets the responsibilities and obligations of all the partners.

Partnerships firms are governed by Indian partnership act, 1932 in India sometimes it is not compulsion to register the partnership firm because there are no penalties for non- registration.

Partnership firm can be register in two ways:-

First whether at the time of its formation and second is even subsequently. It’s required to file an application with the registrar of the firms regarding the area in which your firm is located.

WHAT ALL THINGS ARE INCLUDED IN REAGISTRATION OF PARTNERSHIP FIRM:-

1. Name of the firm.
2. Name of the location where the firm is located.
3. Date of joining the firm by partners.
4. Full names and permanent address of the partners.
5.  The duration of firm.

NECESSARY DOCUMENTS FOR REGISTRATION:-

1. Application in prescribed form-I for registration
2. Duly filled specimen of  Affidavit
3. Certificate copy of partnership deed
4. Proof of ownership of the place of business

Once all this is done and registrar is satisfied of the fact that the application procedure has been duly complied then he shall record an entry in the register of firm and issue a certificate of registration.

Register of firm is maintained to keep up-to-date information about each registered firm. The register of the form is open for inspection by any person.

Any person he or she interested in viewing the details of the can request view the same by requesting registrar of the firm without any payments.

Third is LLP (limited liability partnership):- as the name indicates limited liability partnership limits the liability of partners and it also offers each partners protection from negligence, misdeeds or incompetence of the other partners.

PROCEDURE TO REGISTER an Indian LLP:-

1. First the most important is to apply for a designated partner identification number ( DPIN)
2. Requirement to acquire digital signature certificate (DSC)
3. After the application of DSC a unique name for the LLP would be asked for.

All these documents will be used to file for incorporation with MCA and the certificate of incorporation will be approved at the end of this process. It’s also the need to get the LLP approved with the ministry of corporate, every LLP needs a registered permanent account number (PAN) and also the tax account number (TAN)