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Partnership Firm Registration in Pakistan

You can choose to register a Partnership Firm or Business in Pakistan. Partnership is a business arrangement regulated under the Partnership Act, 1932. The owners of the Partnership Firm or Business are called Partners. At least 2 partners are needed to manage and run the business operations. Partnership Firm or Business is often recommended for people who want to establish an entity for a specific purpose, object and period.

After the goals or objectives of the partnership have been met or the period of time for which the partnership was formed has ended, the partnership can be dissolved.

To register a partnership firm, a Partnership Agreement must be executed, which outlines the terms and conditions of the partnership, including but not limited to: the term, scope, object, shares of each partner, method and time for sharing profits, etc. As with any other agreement, the partners must expressly agree in writing to their rights and obligations to each other.

The process of registering a partnership firm requires the submission of an application to the district registrar of firms in whose jurisdiction the partnership firm is being established. The following documents are required for the registration process:

A partnership deed executed on non-judicial stamp paper worth Rs. 1,000/-, attested by at least 2 witnesses as prescribed under law. The partnership deed must mention the name and address of the partnership firm, as well as the rights and obligations of the parties against each other and any third parties.

In order to register your partnership firm, you will need to submit the following documents to the Registrar of Firms:

- A completed application form

- A bank challan for the prescribed registration fee

- Copies of the CNICs of all partners and witnesses, notarized by a notary public

- Partners may have to appear before the Registrar of Firms in person if required

The Registrar of Firms will process your application within 7 days after receiving all the required documents.

At Burhan & Associates, we help our clients with the process of registering their partnership firms with the Registrar of Firms. We understand our clients' concerns and draft partnership agreements that cover all aspects of the partnership business and protect our clients' interests in the venture. This helps avoid any disputes that may arise between the partners in the future. On behalf of our clients, we negotiate the terms and conditions of the partnership with the other partners. To register your partnership firm, we will need the following documents from you:

-Your proposed firm name

-The nature and scope of your business

-CNIC copies of all partners and witnesses

-The investment amount by each partner

-A Partnership Deed on non-judicial stamp paper worth Rs. 1,000/-

-The office address of the Partnership Firm

If you have any queries or questions about the registration process, or if you would like to secure your interest in the partnership business, please do not hesitate to contact us.

FAQs

To register a partnership firm in Pakistan, you need to draft a partnership deed outlining the business's terms, including partner roles, profit-sharing ratio, and other details. The deed, along with an application form, is then submitted to the Registrar of Firms at the respective provincial government office. Once reviewed and approved, the Registrar issues a certificate of registration.

Key documents for registering a partnership firm include:
Partnership deed (on stamp paper and signed by all partners)
CNIC copies of all partners
Application form (Form I) signed by all partners
Address proof of the business premises
Passport-sized photographs of the partners These documents must be submitted to the Registrar of Firms for official registration.

No, registering a partnership firm in Pakistan is not mandatory, and unregistered firms can still operate legally. However, registered firms enjoy certain legal advantages, such as the ability to file suits in their name and better access to bank loans and government tenders.

A partnership deed is a legal document that outlines the terms and conditions agreed upon by the partners, including profit-sharing ratios, roles, and responsibilities, and dispute resolution methods. It serves as a foundation for the partnership’s operations and helps avoid conflicts. For registered firms, the deed must be submitted with the registration application.

5. How much does it cost to register a partnership firm in Pakistan?

The cost of registering a partnership firm typically includes:
Stamp duty for the partnership deed, which varies depending on the business capital
Registration fee, which is relatively nominal and varies by province Additional costs may apply if legal assistance is used for drafting the partnership deed.

6. Can foreigners be partners in a Pakistani partnership firm?

Yes, foreigners can be partners in a Pakistani partnership firm, provided they meet local legal requirements. Foreign partners must submit passport copies and fulfill any additional regulatory conditions. In some cases, special permissions may be required from regulatory authorities.

The registration process typically takes about 1-2 weeks, depending on the completeness of the application and any specific provincial processing times. Delays may occur if documents are missing or additional information is required by the Registrar of Firms.

Yes, changes can be made to a partnership deed after registration. Amendments, such as adding or removing partners or altering profit-sharing ratios, require a new deed to be drafted and submitted to the Registrar for approval and official record-keeping.

Partnership firms have relatively simple compliance requirements compared to corporations. They must maintain accurate financial records, file annual tax returns, and adhere to any agreed-upon partnership deed terms. If the firm is registered, it should inform the Registrar of any significant changes in its structure or management.

Profit-sharing in a partnership firm is based on the partnership deed. Partners can agree to an equal or specific profit-sharing ratio depending on their contributions or roles in the business. This ratio must be clearly stated in the deed to avoid conflicts.

Yes, a partnership firm can be converted into a private limited company. This process involves registering the new entity with the Securities and Exchange Commission of Pakistan (SECP) and fulfilling all SECP requirements for company registration. It’s advisable to consult a legal professional to manage the conversion process smoothly.

Registering a partnership firm offers several advantages, including legal recognition, the ability to sue or be sued in the firm’s name, easier access to bank loans, and eligibility for government tenders. Registration also provides a level of credibility that unregistered firms may not have.

Yes, a valid business address is required for registering a partnership firm. This address serves as the official location for the firm’s operations and correspondence. Proof of premises, such as a rental agreement or ownership document, is generally required as part of the registration documentation.

If a partner leaves, the partnership deed may need to be amended, and the Registrar of Firms should be informed. The remaining partners can continue the firm if the partnership deed allows it, or a new deed may be created. Proper documentation helps avoid potential disputes or legal issues.



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Lahore Office

Block E 1, Johar Town , Lahore, Punjab , Pakistan 54000
Mr. Ahmed Burhan

Faisalabad Office

Burhan Center, 97-99, Gulistan Market Railway Road, Faislabad, Pakistan
Mr. Ahmed Burhan

UK Office

Associate Office (London)
Mr. Ahmed Burhan

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