What Are the Prohibited Names for a Partnership Firm? When registering a partnership firm in India, certain names cannot be used because they are restricted by law or could create confusion or offense. Using a prohibited name can lead to rejection of the registration application by the Registrar ofRead more
What Are the Prohibited Names for a Partnership Firm?
When registering a partnership firm in India, certain names cannot be used because they are restricted by law or could create confusion or offense. Using a prohibited name can lead to rejection of the registration application by the Registrar of Firms under the Partnership Act, 1932.
1. Names Containing Words Suggesting Government Connection
A partnership firm cannot use words that imply affiliation with:
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The Government of India or any state government
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Any government department or agency
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Public institutions or national symbols
Examples of prohibited words:
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“National,” “Central,” “Federal,” “State Bank of …” (unless officially approved)
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Names of ministries or government schemes
This is to prevent misleading the public into believing the firm has official sanction.
2. Names Identical or Too Similar to Existing Firms
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The proposed firm name cannot be identical or deceptively similar to an existing registered firm in the same state.
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The Registrar may reject applications that could create confusion among the public or infringe on trademarks.
3. Names Containing Offensive or Obscene Words
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Any name containing vulgar, offensive, or obscene language is prohibited.
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The Registrar has discretion to reject names that are derogatory, defamatory, or illegal.
4. Names Suggesting Illegal or Immoral Activity
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Names implying illegal businesses or immoral activities are not allowed.
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Example: Firms cannot use words like “Gambling,” “Drug,” or any term associated with unlawful activity.
5. Names Requiring Prior Approval
Some words may require special approval from authorities before inclusion in the firm name, e.g.:
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Words like “Bank,” “Insurance,” “Stock Exchange,” “Co-operative”
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Names of international organizations or professional bodies
Without official permission, using these words can lead to registration refusal.
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1. Partnership Deed Definition: A partnership deed is a written agreement among partners detailing the terms of partnership, including: Name and address of partners Profit-sharing ratio Capital contributions Roles and responsibilities Duration of partnership Procedures for admission, retirement, orRead more
1. Partnership Deed
Definition: A partnership deed is a written agreement among partners detailing the terms of partnership, including:
Name and address of partners
Profit-sharing ratio
Capital contributions
Roles and responsibilities
Duration of partnership
Procedures for admission, retirement, or dissolution
Registration:
Optional under Section 69 of the Partnership Act, 1932.
Even if a partnership deed is not registered, the partnership exists; however, unregistered deeds limit legal remedies.
For example, an unregistered firm cannot file a suit in civil court to enforce a claim against another partner (Section 69(2)).
Purpose: Registration of the deed primarily provides proof of partnership terms and legal enforceability.
2. Registration of Firm
Definition: Registration of the firm is the act of officially recording the firm with the Registrar of Firms.
Procedure:
File Form A (or applicable form under state rules) with the Registrar of Firms in the state where the business is located.
Submit the partnership deed along with the application.
Upon acceptance, the Registrar issues a Certificate of Registration.
Legal Effect:
Registration of the firm gives the firm legal recognition and allows it to enforce claims against partners and third parties in civil court.
It also ensures transparency with the government for regulatory or tax purposes.
Mandatory Status:
Registration is not compulsory, but highly advisable to enjoy legal remedies under the Act.
3. Key Differences
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