How to register Partnership Firm in KPK
Partnership is a legally binding contract between two or more persons for the purpose of conducting business. Partnership businesses are governed by the Partnership Act, 1932, and the registration procedures may vary across provinces. In this blog post, we will discuss the process of How to register Partnership Firm in KPK
Before we proceed further, we would like to highlight the legal differences between a firm and a company, and explain why a partnership can be a beneficial choice for many businesspeople.
Firms can be formed either for a specific time period or at will.
Specific Time Period:
If your business partnership is for a specific duration, you can create a firm accordingly—such as in the case of a joint venture.
At Will:
Most firms are formed at will, which means they can be dissolved at any time by giving a short notice from any partner. The firm is considered dissolved at the time mentioned in that notice.
Death of a Partner:
In the event of a partner’s death, the firm is automatically dissolved.
It is important to understand that a firm is not a separate legal entity. It cannot be sued independently of its partners. Each partner is jointly and severally liable for the actions of the others. If one partner is found guilty, the others may also be held accountable.
In comparison to other business forms such as a company:
- A company cannot be incorporated for a specific period.
- It cannot be closed or wound up by a director unilaterally.
- A company continues to exist even if all its directors have died.
- A company is a separate legal person, distinct from its owners.
- Directors of a company are not personally liable in the same way as partners in a firm.
However, there are specific provisions in both the Income Tax Ordinance and the Companies Act, 2017, which state that if a company defaults on the payment of taxes, all its directors can be held personally liable.
Moreover, when drafting a legal contract, it is common for both parties to include a clause whereby the directors personally guarantee the obligations of their respective companies.
Similarly, when obtaining a bank loan, banks often require personal guarantees from directors. In such situations, the concept of a separate legal entity does not offer full protection for private companies.However, for public limited companies, the principle of separate legal entity generally continues to prevail
The first step in forming a partnership is to draft a written agreement, known as the Partnership Deed. Once this is completed, the next step is to register the Partnership Firm.
How to register Partnership Firm in KPK : Requirements for Form-A :
- Partnership deed written / printed in English on stamp paper worth Rs.375/-, signed by all the partners in presence of two witness and duly attested by Notary Public and a copy thereof re-attested.
- Photo copies of Computerized National Identity Cards of all partners and witnesses.
- Attested copy of Notary Public license.
- Paid Challan of Rs. 2500/- as registration fee. The fee can be deposited in any branch of National Bank of Pakistan under the Head Account : “CO3545-Registration of Firms & Societies (Provincial)”
- Affidavit from the applicant that none of the partner has register with the same name of Firm.
- Physical appearance of partners before Registrar of Firms & Societies Peshawar.
The Partnership registration in KPK can be done either manually or online.
Manual Process:
Fill out Form-A and submit it to the Registrar of Firms (Assistant Registrar Cooperative Societies). The office is located at Khyber Bazaar Road, Shoba, Peshawar, Khyber Pakhtunkhwa.
Online Process:
Visit the official website: https://apps.kpitb.gov.pk/eodb/ Sign up by entering your CNIC, mobile number, email address, and other details. Upload scanned copies of all required documents and submit the application online.
After submission, all partners must appear in person before the Registrar for verification, along with original documents. Once verified, the Registrar will issue the Certificate of Registration (Form-H) to the applicant.
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