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PARTNERSHIP FIRMS - PROCEDURES (MAHARASHTRA)

 

Sr.
No.

Subject

Form No.

 Time Limit

Sec.

Enclosures

Filing Fees Rs.

Other Charges

Penalties

 Documents and Stamp Duty Amt.
Sec. Amt.

1

Appeal against refusal by registrar to register the firm under a particular name

Plain paper

30 days

58(4)

1. Copy of order appealed against

2. Copy of receipt

150

—

—

—

—

2

Registration

A

1 year

58(1) & (1A)

1. Forwarding letter with Rs. 5 court fee stamp paper

2. Rs. 10 Non-judicial stamp paper

3. Copy of partnership deed certified by CA/HC
Advocate/any other officer

4. Marathi translation of Partnership deed duly certified

5. Copy of ROF letter approving firm name (if any)

300

20

59A-1

Rs. 100/-  year or part thereof

Instrument of Partnership
1. Rs. 500 for no share of contribution or share contribution in cash up to Rs. 50,000 and

2. Rs. 500 for every additional share contribution in cash of Rs. 50,000 or part thereof subject to a maximum of Rs. 5,000

3. For share of contribution brought in by way of property (excluding cash, — same duty will be leviable as on conveyance on the market value of the property (For rates, refer Article 25 given on page 16.3 of the Referencer)

3

Change in principal place/nature of business/firm name

 B

90 days

60(1)

As per enclosures 1 & 2 mentioned under Sr. No. 2

100

30

69A

Up to Rs. 10/day

With effect from 12-5-2005, Supplementary Deed on the Stamp Paper of Rs. 200/- is required to be executed stating the facts as mentioned in Form B as concrete evidence. An
attested copy of such deed is required to be
submitted along with the notarized Form B.

4

Opening and closing of branches

C

 90 days

61

As per enclosures 1 & 2 mentioned under Sr. No. 2

100

30

 69A

Up to Rs. 10/day

With effect from 12-5-2005, Supplementary Deed on the Stamp Paper of Rs. 200/- is required to be executed stating the facts as mentioned in Form C as concrete evidence. An attested copy of such deed is required to be submitted along with the notarized Form C.

5

Change in the Name and Address of the Partner

D

90 days

62

As per enclosures 1 & 2 mentioned under Sr. No. 2

100

30

69A

Up to Rs. 10/day

With effect from 12-5-2005, Supplementary Deed on the Stamp Paper of Rs. 200/- is
required to be executed stating the facts as mentioned in Form D as concrete evidence. An
attested copy of such deed is required to be submitted along with the notarized Form D.

6

Change in Constitution —Admission/Retirement/
Dissolution/Death of Partner

E

90 days

63

As per enclosures 1 & 2 mentioned under Sr. No. 2

100

30

69A

Up to Rs. 10/day

(a) Instrument of Partnership on re-constitution of the firm: Stamp duty as under Sr. No. 2

(b) Instrument of Dissolution/Retirement

 

 

 

 

 

 

 

 

 

 

1. Where immovable property is given to a
partner other than the partner who brought
in that property stamp duty will be leviable
as on conveyance on the market value
subject to a minimum of Rs. 100.

2. Any other case — Rs. 200

7

Minor attaining majority and elects to become/not to become a Partner

F

90 days

63(2)

1. As per enclosures 1 & 2 mentioned under Sr. No. 2

2. Copy of Advertisement
published in one vernacu-
lar local newspaper

100

30

 69A

Up to Rs. 10/day

In case he elects to become partner same as Sr. No. 2. In case he does not become partner same as Sr. No. 6

8

Change in Profit/Salary/Interest

—

—

 

—

—

—

—

—

Supplementary Deed Rs. 200/-

9

Rectification of Mistakes

 —

—

64(2)

An application for certification with enclosure 2 mentioned under Sr. No. 2

100

30

— 

—

—

10

Inspection of Register

—

—

66(1)

1. An application for Inspection
2. Copy of Receipt

20

—

—

—

—

11

Inspection of documents

—

—

66(2)

1. An application for Inspection

2. Copy of Receipt

20

—

—

—

  —

12

Certified copy

—

—

67

1. An application for certified copy

2. Non-judicial Stamp Paper of Rs. 10/-

Rs. 10/100 words or part thereof

—

—

—

 —

 

 

 

 

 

 

 

 

 

 

 

13

Intentional furnishing inaccurate/false particulars

—

—

—

—

—

—

70

Fine/ —imprison-
ment for a
term which
may extend
to one year
or both

 

  1. Forms A, B, E should be signed by all the partners (including the retiring partner). Forms C and D by any one partner and Form F by partner attaining the age of majority. All the forms have to be signed before Notary/Magistrate. The Marathi Translation which is required to be filed at the time of registration of firm should be signed by all the partners along with Form A.

  2. In cases of retirement, Form E should be signed by both Incoming and Outgoing Partner/s or two separate E forms duly signed each for admission and retirement respectively are required to be submitted along with the Instrument of Partnership and Retirement Deed.

  3. Fees include copying charges, where applicable.

Some important tips to be remembered to avoid objections from Registrar of Firms in respect of forms filed.

  1. Always write full Name with correct spellings in Deed of Partnership and on all the Forms at all places wherever necessary and also adjacent to the signature in case of all the forms (viz., Forms A, B, C, D, E, F).

  2. Stamp paper must be in the name of firm or partners.

  3. If change in constitution is simultaneous with change in address, both forms E and B or D are required to be filed. Even if the changed address is mentioned in partnership deed, it cannot be considered as notice of change unless Form B or D is filed.

  4. Change in Karta of HUF is required to be intimated to ROF.

  5. Date of filing of documents must be within one month of such notarization.

  6. Always check date of stamp paper, date of execution of deed and effective date of partnership deed.

  7. In case of change in name on account of marriage Form ‘D’ along with marriage certificate copy should be filed. If Form ‘D’ is not filed and only name and signature of married partner (particularly Lady partner) is changed, then subsequent changes also will remain to be recorded in spite of filing of required forms.

  8. Always match the particulars in the deed with the information being filled in the form and compare it with last entry on record.

  9. Ensure that the seal of Notary is put with Red ink and initials of Notary on all pages of the document or form, which is notarized. Do not forget to obtain Name and Address stamp of the Notary on the notarized document or form.

  10. In case of rectification application filed under section 64, requesting correction of error on account of spelling mistake or omission of any submission etc. signature of all existing partners is necessary on the said application. However, letter of authority to appear before the Registrar of Firms for personal hearing can be signed by any one of the existing partners.

  11. After a personal hearing, you are required now to make an application in writing to obtain a copy of order which states the amount of fine payable on account of delayed submissions. After you receive the said order, you can pay fine and then receive entry on record on a stamp paper of Rs. 20/- supplied by you along with the submissions.

  12. In case of Partnership Firm of Chartered Accountants, Partnership Deed of the said firm has to be attested by a Chartered Accountant other than the partner of the said firm.

  13. The stamp paper which is used for execution of Deed of Partnership should be dated within 6 months of the date of issue of such stamp paper. This provision is effective from 1-12-1989.

  14. With effect from 31-8-2005, in case of a firm as per the object clause of the Partnership Deed, if a specific permission or registration or any legal compliance is required, to commence or do any business by the firm and if any document as a proof of such permission or registration or compliance is not available at the time of registration of firm to be submitted to the Registrar, then a declaration in the form of Affidavit is required on the stamp paper of Rs. 20/- duly notarized, signed by all partners is required to be submitted in original along with Form A. (e.g., IEC Number in case of Import/Export Business or Liquor Licence in case of Wine Shop).

  15. As per the circular issued by Registrar of Firms dated 20-1-2007, it is necessary to give an authority to a person who is going to represent the firm either to collect any document or to discuss any issue related to objection raised by the Registrar. Send the same duly signed by all the partners to the Registrar along with the other submissions.

Recent Court Decision

Maharashtra State Amendment to Indian Partnership Act 1932 (Maharashtra Act, 29 of 1984, S.14) came into force w.e.f. 1985. By this amendment, a time limit was laid down within which Registration and subsequent changes were to be intimated to the Registrar. A new section 69A was inserted providing for levy of penalty in case of delay in furnishing the forms required by u/s. 60 to 63 of the Act. (Refer chart for time limits). In case of M/s. Adamji Lookmanji & Co. Registrar of Firms levied penalty for non-intimation of changes in partnership in time limits (which has been prescribed w.e.f. 1-1-1985) for changes that took place prior to 1-1-1985. The penalty was challanged by M/s. Adamji Lookmanji & Co. since there was no prescribed time or clauses of penalty prior to 1-1-1985.

The petition was allowed and it was held in M/s. Adamji Lookmanji & Co. & Ors. vs. State of Maharashtra & Anr., that the demand of such penalty in respect of changes effected prior to 1-1-1985 is without the authority of law. Any change or alteration if made in terms of sections 60, 61, 62 or 63, prior to the Amendment by Maharashtra Act 29 of 1984 will be governed by the provisions of law as they stood before the amendment. Even in respect of such change if a party applies for effecting the change or alterations after the Amendment Act has came into force, considering the language and perusing the ambit of section 69, it will be governed by the law before the Amendment. It is only change or alteration after the amendment which will be governed by the amended provisions. The above demand is therefore illegal, bad and without jurisdiction. The respondents at the highest can consider and/or impose penalty in respect of changes which took place after 1-1-1985.

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