Introduction:
Registering a partnership company in Pakistan is a common choice for entrepreneurs who wish to establish a business together. A partnership company is a form of business where two or more individuals join forces to carry out a commercial venture. This article provides a detailed guide on how to register a partnership company in Pakistan, including definitions, examples, case studies, and a conclusion.
Definitions:
Partnership:
A partnership is a business structure where two or more individuals, known as partners, come together with the shared goal of conducting a business. Partnerships can be formed with a written or oral agreement, and they can be registered or unregistered.
Partnership Deed:
A partnership deed is a legal document that outlines the rights, responsibilities, and obligations of the partners. It includes details such as profit-sharing ratio, capital contributions, decision-making processes, and the duration of the partnership.
Steps to Register a Partnership Company in Pakistan:
Select a Suitable Name:
Choose a unique name for the partnership company that does not infringe upon any existing trademarks or copyrights. It is advisable to check the availability of the chosen name with the Registrar of Firms.
Prepare a Partnership Deed:
Draft a partnership deed that clearly defines the terms and conditions of the partnership. Include details such as the names of partners, their addresses, capital contributions, profit-sharing ratio, roles, and responsibilities of each partner, and the duration of the partnership.
Stamp the Partnership Deed:
Purchase the required stamp paper and have the partnership deed printed on it. The value of the stamp paper depends on the capital investment and the rules of the relevant province.
Sign and Notarize the Partnership Deed:
All partners should sign the partnership deed in the presence of witnesses. Get the partnership deed notarized by a notary public to authenticate its legality.
Register with the Registrar of Firms:
Submit the partnership deed along with the prescribed registration form to the Registrar of Firms in the relevant district. The form should include details such as the name of the firm, partners’ names and addresses, date of partnership commencement, and other necessary information.
Pay the Registration Fee:
Pay the registration fee, which varies depending on the capital investment and the province’s regulations. Obtain the fee challan and attach it with the registration documents.
Obtain the Registration Certificate:
Upon submission of the partnership deed, registration form, and fee payment, the Registrar of Firms will review the documents. Once approved, a registration certificate will be issued, confirming the partnership company’s legal existence.
Examples:
XYZ & Co.:
XYZ & Co. is a partnership company in Pakistan formed by Mr. A and Mr. B. They decide to establish a clothing retail business together. They draft a partnership deed that outlines their capital contributions, profit-sharing ratio, and the roles each partner will undertake in the business. They register their partnership company with the Registrar of Firms, and upon receiving the registration certificate, they begin operating their clothing store.
ABC Law Firm:
ABC Law Firm is a partnership company in Pakistan established by three lawyers, Ms. X, Mr. Y, and Mr. Z. They specialize in providing legal services to clients. They create a partnership deed that clearly defines the scope of their services, profit-sharing arrangement, and decision-making procedures. After registering their partnership company, they start offering legal advice and representation to clients.
Case Studies:
Partnership Company Case Study: PQR Pharmacy:
PQR Pharmacy is a partnership company in Pakistan founded by two pharmacists, Mr. M and Ms. N. They decide to open a chain of pharmacies together. They prepare a partnership deed that specifies the location of each pharmacy, the investment ratio, and the responsibilities of each partner. After registering their partnership company, they open multiple pharmacy outlets across different cities, leveraging their combined expertise and resources. The partnership allows them to share the workload, pool their capital, and benefit from each other’s knowledge and experience in the pharmaceutical industry.
Partnership Company Case Study: LMN Design Studio:
LMN Design Studio is a partnership company formed by three designers, Ms. P, Mr. Q, and Ms. R, in Pakistan. They specialize in graphic design and branding services. They create a partnership deed that outlines their individual roles, profit-sharing arrangement, and client acquisition strategies. After registering their partnership company, they collaborate on various design projects, combining their creative skills and expanding their client base.
Conclusion:
Registering a partnership company in Pakistan involves selecting a unique name, preparing a partnership deed, stamping and notarizing the deed, registering with the Registrar of Firms, paying the registration fee, and obtaining the registration certificate. Partnership companies offer entrepreneurs the opportunity to collaborate and combine their resources, skills, and expertise for business ventures. By following the registration process, partners can establish a legally recognized partnership company and embark on their entrepreneurial journey together.