Partnership company – Registration Procedure

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Partnership Company– Registration Procedure

A partnership may be registered with Registrar of Joint Stock Companies and Firm of Bangladesh (“RJSC”).

The partnership registration process consists of two steps: a) name reservation; and b) registration of the entity. Under normal circumstances, a partnership registration can be completed within one/two days.

Step 1- Choosing the Partnership Name

The partners are free to choose any name as they desire for their partnership firm subject to the following rules:-

    The names must not be too identical or similar to the name of another existing firm doing similar business so as to lead to confusion. The reason for this rule being that the reputation or goodwill of a firm may be injured, if a new firm could adopt an allied name.
    The name must not contain certain words expressing or implying the sanction, approval or patronage of Govt.

Once you select a name, you should apply for name clearance using the website of RJSC.

Step 2 – prepare a Partnership Deed

You should prepare a partnership deed. Usually, a partnership deed contains the following clauses:

    Name and Address of the firm as well as all the partners;
    Nature of business to be carried on;
    Date of Commencement of business;
    Duration of Partnership (whether for a fixed period/indefinite time);
    Capital contribution by each partner;
    Profit sharing ratio among the partners;
    Rules to be followed in case of retirement, death and admission of a partner; and
    The above are the minimum essentials which are required in all partnership deeds. The partners may also mention any additional clauses.

The Partnership Deed should be on a stamp paper in accordance with the Stamp Act and should be signed by all partners. Then it should be notarized.

Step 3- Register Partnership deed with RJSC

The partnership deed and filled up Form I should be filed with RJSC. These documents will be reviewed by the officials of the RJSC. When the officials are satisfied with the points stated in the partnership deed, he shall record an entry of the statement in a register called the Register of Firms and issue a Certificate of Registration.

Source:https://resource.ogrlegal.com/partnership-in-bangladesh/