How to register a partnership firm in india

Are you looking to register your partnership firm? Here you have it: simple setup, minimal expenses, painless processing, quick updates, and more. To get started, pay only ₹499*/- now, and the remaining later when processing begins.

Register Your Partnership Firm Online

One of the easiest ways to start a business with someone is to establish a general partnership firm. We help you with your general partnership registration in India in the following ways.

We study your business requirements.

We prepare the first draft and share with you within 4 working days.

We do up to two rounds of iterations, if necessary, at no extra cost.

Partnership Company Overview

A general partnership is a corporate structure in which two or more people manage and operate a company in accordance with the partnership deed's provisions and objectives. This structure is thought to have lost its relevance since the introduction of the limited liability partnership (LLP) because the partners in a general partnership firm have unlimited liability, which means they are personally liable for the debts of the business. However, low costs, ease of setting up, and minimal compliance requirements make it a sensible option for some, such as home businesses that are unlikely to take on any debt. Registration is optional for general partnerships. Contact our Vakilsearch experts now to know the recent partnership deed format.

Timeframe

The partnership firm registration process takes about 10 to 12 working days, depending on departmental approval and reverts from each department.

Name of the Partnership Firm

Any name can be given to a partnership firm as long as you fulfil the following conditions:

  • The name shouldn't be too similar or identical to another company in the same industry
  • It also shouldn't contain words like emperor, crown, empress, empire, or any other phrases that imply official authorisation or permission.

Checklist for Partnership Firm Registration

  • Drafting of partnership deed
  • Minimum two members as partners
  • Maximum number of partners equal to or less than 20
  • Selection of appropriate names
  • Principal place of business
  • PAN card and bank account of the firm
  • Initial investment to start the firm.

Documents Required for the Registration of a Partnership

  • Application for registration of partnership (Form 1)
  • Certified original copy of partnership deed
  • Specimen of an affidavit certifying all the details mentioned in the partnership deed and documents are correct
  • PAN card and address proof of the partners
  • Proof of principal place of business of the firm.

If the documents satisfy the registrar, the firm will be entered into the register of firms and a certificate of registration will be issued.

Benefits of a Partnership

Minimum Compliance

For general partnerships, there is no need for an auditor to be appointed or, if the company is still in the process of registration or is still unregistered, annual accounts filing with the registrar is not necessary either. Annual compliances are also lower when compared to an LLP.

Simple To Begin

A general partnership can be formed within 2-4 business days, with an unregistered deed of partnership. However, registering for the event offers its own set of benefits.

Comparatively Economical

A general partnership is substantially less expensive to start than an LLP. It will still be cost effective in the long term because the compliance needs are minor.

How to Register Partnership Firms in India

  • Step 1: First, a member of our Vakilsearch team will give you an overview of the process and present you with a list of essential documents for registration
  • Step 2: Documents can be submitted electronically via our mobile application or our website
  • Step 3: After the documents have been verified, a partnership deed is prepared and given to the partners for signatures
  • Step 4: All partners must sign the contracts on stamp paper and upload a copy to our systems
  • Step 5: Once the signed partnership deed is available, it is registered with the appropriate registrar of firms, and the partner is given a certificate of registration.

Why Vakilsearch?

  • Vakilsearch can help you start a partnership firm from start to finish
  • We are capable of advising and serving you, even as your company grows and expands
  • You can reach us at any time. You can contact us via text, whatsapp, email, or phone
  • We place a great value on ethical business operations
  • We believe that flexibility leads to greatness, so we customise all of our services to each client's individual needs.

FAQs on Partnership Firm Registration Online

The Glossary

A statement, written or oral, made before a person authorised by law to administer oaths (such as a notary public).

An agreement between an employer and an employee. This differs from other agreements, in that it is governed by employment law, which may take precedence over standard contract law.

The termination of a partnership.

A partner in a limited partnership who has authority to engage in operating the business.

A legal term for a document.

Partnership at will

A partnership in which the partners have not agreed to remain partners until the expiration of a definite term or the completion of a particular undertaking.

The official address of the company, as designated with the secretary of state. Any documents delivered to this address are considered to be legally served by the company.

Partnership firms governed by partnership deed are strong forms of business structure that enables accurate division of profit among the partners. Contrary to a sole proprietorship, this establishment is headed by a group of volunteered individuals supporting a common business agenda. Thereby, the agreed terms and profit beneficiary ratio minimizes the compliance as opposed to companies. Besides, its an easy organization structure to form.

Salient Features of a Partnership Firm
  • Formed on mutual agreement called Partnership Deed
  • Righteous business activity
  • Apt shares of profits and loss between partners
  • Liability between partners
  • Clear and collective management
  • Clear transfer ability clauses
  • Registration (optional)
  • Specified duration
Understanding the Pros and Cons of a Partnership firm

As stated before, partnership requires minimal compliance. For instance, it is excused from filing annual tax returns along with publicizing the financial statement of the firm. Further, auditing work isn’t mandatory. On the other hand, the partners do not acquire liability protection and don’t have eternal survival in the firm.

Additionally, the structure does not encourage investment from Angel investors, Financiers, or Private Equity units. Also, the rates of banks lending money to companies are higher than the Partnership firm.

Starting a Partnership firm

Consider the following things while starting a firm

Name of the firm

The name can be chosen by the partners keeping two points in mind

  • Name must not be too familiar or identical to any firm that is in existence.
  • The name should not contain words (king, emperor, crown) that require government’s sanction.
Partnership Agreement

The agreement among the partners of the firm that encompass rights, responsibilities, profit shares, along with all the necessary obligatory clauses is the Partnership Deed. Emphasize that, a deed must be written and signed (opposed to agreeing orally) to avoid future conflict. The necessary information to formulate a deed are:

How to register a partnership firm in india

Sample Partnership Deed necessary for staring a Partnership Firm

General details and Specific information
  • Name, address, nature of business, date of establishment, capital invested (separately by each partner), profit or loss division ratio.
  • Interest-based on the capital investment OD each partner
  • Salaries including all financial drawing by the partners
  • Rights, Duties, and obligations of every partner specified by name
  • Alignments in case of mishaps such as defaults or death of a partner
  • All the clauses mutually decided among the partners
Registration of the Partnership Firm

The registration of the partners is optional, thereby dividing the firms into a registered firm and non- registered firm. Despite that, the firm abiding the Indian Partnership act, 1932 governs the associates of the firm.

Even though, registration is not mandatory it is advisable because

  • The firm will not have a legal stand against the third party in any case
  • In the case of misconduct or disagreement, a file can not be registered against the partner.
  • The liability of an unregistered firm is less
Documents Necessary for Registration

As discussed earlier, any firm is not legally perceptible unless it is registered. Hence, these following document:

  • Application form for registration- Form 1
  • Partnership deed copy
  • Address proof (for the place of business)
  • Partners documents- PAN card and Address proof of each individual
  • Firm documents- PAN card (specially generated for the firm)
  • Supporting Documents- GST registration and Current account details
Registration Procedure

A very simple process is used to register the Partnership firm. That is

  • Initially, issue the application form
  • Fill the form with adequate data and subsequently sign (by all partners)
  • Further, submit the form to Registrar of Firms of the state where the business is located
  • Finally, payment of fee
  • Additionally, submit necessary documents

Following that, the official analyses the documents for accuracy. Subsequently, if the documents are factual, the officials issue a Certificate of Registration in the name of the Partnership firm.

Business partnerships play a vital role in the success of new ventures. They come with an extra managerial support – a blend of intellectual, monetary capital and skills. Stay alert with a few aspects of partnership firm registration in India prior to the process initiation. Maintaining partnerships is a task since factors like ego, money, disagreements can lead to a fallout.

Consider the following before you go for partnership registration

1. Do not rush in choosing a partner.

A lot of thought should go in choosing a right partner for your business. People with similar mind-sets, goals, and values usually create successful partnerships. Before you sign the partnership deed it is better to gauge your options. Networking is a great way to begin. It would help you to understand the other persons work methods and values.

Partnerships are dependent on two or more individuals working together for making profits in a business. If one of them disagrees with the other, it can harm the business. Hence, it’s best to choose your partner cautiously for a successful business arrangement.

2. Partnership Registration is highly recommended

Partnership registration is critical as the nature of partnerships is uncertain. All the clauses when spelt out create a sense of transparency. That is why it is recommended to create a balanced Partnership Agreement for partners.

Here are some of the benefits of partnership deed registration:

  • Gives partners the ability to file a case against third parties, and other partners
  • Grants the power to claim set-off against any third-party claim
  • It’s easier and faster to convert into any other business structure if the partnership is registered

The following are the essentials of a balanced and a well-drafted deed:

  • The name of the partnership: Preferably, it should be unique and original to have distinct recognition in the target audience/market
  • Partners’ contribution: Can be in form of Property, Services, or Cash. Their valuation as well as what ownership percentages the partners would have
  • Profit and loss allocation: Details about the divisions of profit and loss
  • Partners’ Authority: It covers aspects of decision-making, specifying who shall have a final say. The deed should also include if any decision requires a majority vote or a unanimous consent
  • Management duty: An ideal deed will include splitting-up duties amongst the members along with an individual’s responsibilities
  • New partner admittance: Should include details on how to bring in new partners. Establishing a system will make it easy to take decisions for getting new people on board
  • Partner withdrawal: A withdrawal process for a partner(s) by death or choice will prevent roadblocks in a partner’s absence. Creating a buyout scheme is advisable

Dispute resolution: Specifics about dispute resolution schemes must include ADR or court-order to handle disputes.

3. Look into LLP registration

Limited Liability Partnership is an ideal option to create a more secure structure than the general partnership. It keeps the liabilities among the partners limited.

LLP Registration offers the following benefits

  • Flexibility
  • Liability protection: One partner would not be held liable for the actions of the other
  • Tax Advantages: LLP gets extra benefits while other requirements remain the same as the general partnership
  • A separate legal entity from the partners: Allowing an LLP to own assets in its own name
  • Continuous existence: Exit or death of partners does not affect the LLP
  • Increases the credibility: Raising funds from financial institutions becomes easy

Hence, the risk is less.

4. Be careful in deciding the capital distribution

Capital is the fuel that ensures the running of every business. One can make capital contributions at any stage of the partnership firm registration. It can be your resources, money, contacts etc. Giving all your capital can create differences and clashes. Moreover, sharing expenses by dividing duties makes dissolution simpler.

The clause should specify:

  • Partners initial contribution to the firm
  • Changes made in the capital amount
  • If there is no contribution from any partner the deed should specify that too

The stamp duty amount is dependent on the capital invested during the registration.

The contribution can be made in various forms:

  • In cash
  • Tangible Assets, which can be machinery, land, inventory, building etc.
  • Intangible Assets, these include intellectual properties, goodwill, customers etc.

The partnership agreement must include the asset valuation as contributed by each partner. This makes dissolution easier by dividing share between the partners. Along with the deed, books of accounts should have all this information.

An additional agreement is required in case of a change in total capital or in an individual partner’s investment it. And if the partnership deed is registered, the changes are to be notified to the RoF.

5. Organize an exit strategy

The partnership agreement should have a specific exit plan. It should define

  • The procedure
  • Details about the distribution of profits
  • The firms’ dissolution strategy

An exit strategy should be such that it allows you or your partner to walk away from the partnership, or that provides options to buy out the other party. Voting rights are a must to avoid deadlocks, especially where it’s a 50/50 share partnership. Taking a third party on the board can help solve issues, as he can act like a tiebreaker.

These are some of the essentials one needs to be aware of before starting a partnership firm. These key points can help you make better decisions regarding the partnership firm and establish a successful business. Partnerships are great to start out with. But as one grows many other business structures can be opted for according to one’s requirements.

According to Section 4 of The Indian Partnerships Act, 1932 “Partnership” is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Registration of partnership is not compulsory but registering it gives advantages to the partnership.

Pre-requisites for registration

  • Minimum 2 partners out of which one partner must be an Indian resident
  • The partners must have at least attained the age of 18 years
  • None of the partners should be disqualified under the laws in force to form a partnership firm
  • The proposed name of the partnership firm should not be identical or similar to an existing company/ LLP name/ partnership
  • The proposed name of the partnership firm should not be similar to an existing pending or registered trademark

Registration

A minimum number of partners required for a partnership firm in India are 2 (two). It is registered under the said act by giving details of all the partners as necessary the partners of the firm will be held personally and severally liable for any losses incurred. The Registrar of Firms of the State is the administrative authority for registration of partnership firms in India.

The relationship between the partners as well as the profit and loss sharing ratio is governed by the Partnership deed entered into by the partners of the partnership firm. The partnership deed in India is required to be signed by all the partners before a notary public.

Addition of New Partner: A new partner in a partnership firm in India can be added by way of amendment of existing partnership deed and submission of the relevant form along with the supplementary partnership deed with the Ministry of Corporate Affairs (MCA).

Removal of a Partner: A partner may be removed in India by way of passing a resolution for excluding the partner from the partnership firm and amendment of existing partnership deed to the said effect.

Time frame: The estimated time frame for formation of partnership firm in India is approximately 10-15 days. However, this time frame may vary depending upon the backlog at the office of the Registrar of Firms of the relevant state.

Licenses to operate: A partnership firm is required to obtain respective central, state and municipal licenses/ registrations to operate its desired business in India. However, the nature and the type of licenses/ registrations will vary from business to business.

Dissolving a partnership: A partnership in India may be voluntarily dissolved in accordance with an agreement entered between the partners for the same.

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What is Partnership Firm?

A firm or company established between two or more partners with the goal of earning profit is called as a Partnership Firm.It is not compulsory to register a partnership firm but there are added advantages if a partnership firm is registered.Partnership deed is the legal document which is created to form a partnership firm.

Indian Partnership Act 1932 is the governing law which regulates the partnership firms in India.As per the act “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”. Maximum number of members in a partnership is 10 for a banking business and 20 for other businesses to enter into a partnership firm.

Partnership firms are not separate legal entity while the partners are.A partnership firm can not be debtor or creditor and can not own a property.The property, debit or credit of a partnership firm is actually for the partners in the eyes of law.The manner in which profits or losses are to be shared amongst partners must be explicitly mentioned in the partnership deed to avoid any confusions in the future.Every partner can carry on business on behalf of others.

A partnership firm would be dissolved if the number of partners reduces below 2 in case of death,incapacitation or resignation of a partner.

Current Account Opening

A current account is a type of deposit account that helps the professionals and businessmen to run their business. Businessmen can avail various benefits by Online Current Account such as:

  • Unlimited transactions
  • Customized features
  • Online banking services

Online current account reduces the hassle and provides the benefit to complete the banking process anytime and anywhere.

Incorporating a company through Simplified Proforma for Incorporating Company electronically (SPICe -INC-32), with eMoA (INC-33), eAOA (INC-34), is the default option and most companies are required to be incorporated through SPICe only.

Incorporation through SPICe (For details, SPICe FAQs under HELP & FAQS may be referred)

In order to register Part I Company, applicant is required to file Form INC-1 for name availability, first. After approval of the same, applicant is required to file Form No. URC-1 along with filing e forms INC-7, INC-22 and DIR-12 or e-forms INC-7 and DIR-12 as the case may be.

To register a section 8 company, applicant is required to file Form INC-1 for name availability. Once the name is approved, there is a further requirement of obtaining a license for a Section 8 Company, for which Form INC-12 is to be filed by such a company. After obtaining the license number, applicant can proceed further to incorporate a company by filing e forms SPICe or INC-7 (in case number of subscribers are more than seven) along with linked forms as the case may be.

Any foreign company can establish its place of business in India by filing eForm FC-1 (Information to be filed by foreign company).

Note: The eForm needs to be digitally signed by authorized representative of the foreign company. There is no need to apply and obtain DIN for Directors of a foreign company. However, it is mandatory to register the DSC of the authorized representative of the foreign company via associate DSC service available at MCA portal.

Registration of Partnership Firm
(Under Indian Partnership Act, 1932)
(Only in Tiswadi, Salcete, Bardez Talukas)

1] New Registration:

Documents required:
1. Form No.II
2. Certified copy of Partnership Deed.
3. ID proof of all parties.

Procedures:
1. Fill in Form No.II duly signed by all parties.
2. Party produces a Notarized copy of document on Non-Judicial Stamp paper (depends on Capital Amount).
a) In case where Capital Amount is not mentioned; the Stamp Duty applicable is Rs. 500/-.
b) In case where Capital Amount is mentioned; the Stamp Duty applicable is Rs. 500 for every 50,000 subject of max to Rs. 5000/-.
c) In case of immovable property, Stamp Duty is as per Conveyance slab.
3. Search is made in the records whether in the same name the Partnership Firm is registered in the office of Civil Registrar-cum-Sub-Registrar.
4. Payment of fees is done by the party.
5. After payment, the Partnership Firm is registered.
6. A copy of the Abstract with endorsement stating that it is true xerox copy of the original registered Partnership Firm is given to the party.

Fees:
1. In case of Computerized Data:
New Registration of Partnership Firm.
Registration Fees: Rs. 70/-
Processing Fees: Rs.10/- (per page)

2. In case of non-Computerized Data:
New Registration of Partnership Firm.
Registration Fees: Rs. 50/-
Xerox Fees: Rs.20/- (per page)

2] Reconstitution of Firms under section 63(1) and Rules 7(6):

Documents required:
1. Form No.VI
2. Attach Re-Constitution Deed.

Procedures:
1. Fill in the application form No.VI along-with Re-Constitution Deed.
2. Endorsement is done on the office register (in case of non-Computerized data).
3. Endorsement is done in the database (in case of Computerized data).
4. Payment of fees is done by the party.

5. After payment, Reconstitution of Partnership Firm is registered on the same day on the office register.
6. A copy of the Abstract with endorsement stating that it is true xerox copy of the original registered Reconstitution of Partnership Firm is given to the party.

Fees:
1. In case of Computerized Data:
Reconstitution of Partnership Firm.
Registration Fees: Rs. 70/-
Processing Fees: Rs.10/- (per page)

2. In case of non-Computerized Data:
Reconstitution of Partnership Firm.
Registration Fees: Rs. 50/-
Xerox Fees: Rs.20/- (per page)

3] Dissolution of Partnership Firm:

Documents required:
1. Form No.VII
2. Attach Dissolution Deed

Procedures:
1. Fill in the application form No.VII along-with Dissolution Deed.
2. Endorsement is done on the office register (In case of non-computerised data).
3. Endorsement is reflected in the database (In case of computerised data).
4. Payment of fees is done by the party.
5. After payment, Reconstitution of Partnership Firm is registered on the same day on the office register.
6. A copy of the Abstract with endorsement stating that it is true xerox copy of the original registered Dissolution of Partnership Firm is given to the party.

Fees:
1. In case of Computerized Data:
Dissolution of Partnership Firm.
Registration Fees: Rs. 70/-
Processing Fees: Rs.10/- (per page)

2. In case of non-Computerized Data:
Dissolution of Partnership Firm.
Registration Fees: Rs. 50/-
Xerox Fees: Rs.20/- (per page)

4] Certified Copy:

Documents required:
1. Application on plain paper requesting certified copy for the document.

Procedures:
1. Application is processed to the dealing clerk.
2. Xerox copies are attested by the Civil Registrar-cum-Sub Registrar.
3. Dispatch clerk issues the certified copy to the party.

Fees:
Prescribed Fees: Rs.20/-

NOTE: In case of any queries kindly visit dealing clerk of Civil Registrar-cum-Sub Registrar office of respective taluka.

Registration Of Partnership Firms in Maharashtra

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Apply for Registration Of Partnership Firms in Maharashtra provided by the Department of Law and Judiciary of the state. Information about documents required and guidelines to fill the form is given.

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Documents Required for Partnership Firm Registration Process in India

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Thinking of starting a partnership firm in India? Then, you must get done with the registration of partnership firm to avail all the benefits that a registered firm acquires. A partnership firm is a sort of business structured with mutual consent between two or more people who decided to share all the profits of the firm. Such firms are registered under the Indian Partnership Act.

Partnership Firm Registration Process & Documents Required

It is important as it benefits you from future legal disputes. There are three types of partnership firms in India, i.e. General Partnership, Limited Partnership, & Limited Liability Partnership.

What is the procedure for registration of partnership firm?

You can register your partnership firm in any of the above-mentioned categories. Follow the steps mentioned below for registration. Also, by simply sitting at home, you can do online registration.

  1. Apply to the registrar in Form A (Partnership Firm Registration Form) which consists; Name of the firm, Name & Address of Partners, Address of the firm & all branches, if any, Joining date of partners, Duration of Firm, Date of Commencement.
  2. File the Partnership Deed
  3. Pay partnership registration Fees
  4. Approval of the Application

Documents Required For Registration of Partnership Firm

To register your firm, you should have the required documents first. Here is a list of documents that are needed:

  • Partnership deed signed by all the partners of the firm
  • Pan card of all the partners
  • Address Proof of all
  • Pan card of the firm separately
  • Address proof of the firm. In case if the property is rented, then you need NOC from the owner.

Many of you may get confused about what is a partnership deed? Then it is a legal document signed by the partners of the firm to avoid any future disputes. It is signed on a judicial stamp paper that contains the information like: Name of all partners, Name of the firm, Nature of business, Date of commencement, Profit sharing ratio, and much more. In the end, you should also need GST registration for partnership firm.

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The term “Partnership Firm” denotes a business format that is governed by the provisions of the Indian Partnership Act 1932. Further, this format requires a minimum of 2 people and is based on the concept of Mutual Trust and Principal Agent Relationship.

Usually, a partnership firm as a business structure is chosen by Budding start-ups, small and medium enterprises, entrepreneurs who operates in unorganised sectors.

Moreover, a partnership firm refers to an association of people who decides to mutually carry out a business and share profits earned and losses incurred.

Some of the renowned examples of Partnership Firm are Uber and Spotify, Red Bull and GoPro, Louis Vuitton and BMW, Levi’s and Pinterest, etc.

Concept of Partnership Deed

The term “Partnership Deed” denotes a Magna Carta for the working of a Partnership Firm. All the terms, conditions, duties, rights, rules, and regulations are covered under Partnership Deed. It can be both written and oral. However, it is suggested to a have a written deed to avoid and minimise future havoc and dispute among partners.

Further, it includes all the specifications, details, profit sharing ratios, roles and responsibilities of each partner, nature of work, type of partnership, mode of winding up, etc.

Therefore, a partnership deed is termed as the Bible for a Partnership Firm, as it forms the basis for both firm and partners.

Benefits of a Partnership Firm Registration

The benefits of a Partnership Firm Registration are as follows:

  • It requires a minimum of 2 and a maximum of 20 people, However, in case the firm deals in banking activities then the maximum people required will not exceed 10;
  • There is no minimum capital requirement;
  • A partnership firm is known as the easiest and hassle-free business structures to form;
  • Partnership Deed acts as the basis for this business model;
  • Provides Ease in Decision Making;
  • Offers Ease in Raising Funds through various partners;

Key Features of Partnership Firm

The features of a Partnership Firm Registration are as follows:

  • Requires a minimum of 2 people;
  • Prescribed Roles and Responsibilities of all the partners working;
  • Fewer Compliances;
  • Minimal Legal Compliances;
  • Easy to Wind-up;
  • A Minor is not eligible to become a partner;
  • Provides Flexibility and Ease in Decision Making;
  • Inexpensive to Incorporate;

Different Types of Partnership Firms?

How to register a partnership firm in india

The concept of partnership firm is divided into the different types as follows:

General Partnership

Partnership at Will:

The term “Partnership at Will” denotes a firm whose closure depends on the wish of the partners. That means the partners of the firm tend to decide till when they want the said firm to continue.

Particular Partnership:

The term “Particular Partnership” denotes a firm that is created with a motive to carry out a specific project or undertaking. That means this type of partnership firm works on a contract-based project.

On the basis of Registration

Registered Partnership:

The term Registered Partnership denotes a firm that is registered under the provisions of the Indian Partnership Act 1932.

Unregistered Partnership

The term Unregistered Partnership Firm denotes a firm that is formed just by executing an agreement among the partners. However, it shall be taken into consideration that partners of an unregistered firm are not eligible to sue any third party but can get sued.

Documents Required for obtaining Partnership Firm Registration

In India, the documents required for obtaining Partnership Firm Registration are as follows:

  • Application in Form 1;
  • Specimen of Affidavit;
  • A copy of the Original Certified Partnership Deed;
  • Ownership documents of the premise being used as registered office;
  • A copy of Lease Deed or Rental Agreement;
  • Identity proof for every partner in the form of PAN/ Aadhar Card/ Voter ID/ Driving License/ Passport, etc.;
  • Utility Bills in the form of Property Tax Receipt, Water Tax Receipt, Electricity Bill, Property Tax Receipt;

Procedure for Partnership Firm Registration

How to register a partnership firm in india

The steps involved in the procedure of partnership registration are as follows:

Choose a Unique name

The first step in the process of registration is to choose a unique name for firm. However, it shall be taken into consideration that the name chosen must not include words, such as emperor, empire, empress, crown, etc.,

Further, the name selected should not be similar to the name of an existing firm involved in the same type of business.

File an Application

Now, the partners need to file an application in Form 1 to the ROF (Registrar of Firms) for the registration of the partnership firm. Also, the application must be in specified format, together with prescribe fees.

Prepare a Partnership Deed

In the next step, the partners need to mutually draft a partnership deed on a stamp paper. Also, a deed can be both written or oral. However, it is suggested to have a written deed as it reduces the chance of future dispute.

Submit Documents

After that, the partners need to submit all the documents required, together with the deed drafted.

Verification of the Application

After the successful submission of both documents and application, the ROF of the respective state will a Certificate of Registration for the said partnership firm.

Partnership firm is a business form in which 2 or more individuals can join hands to do business.

Easy Formation

Partnership firm can be easily & quickly registered in comparision to other form of business.

Low Cost Registration

As comparison to other business form, cost of registering partnership firm is very low.

Tax Benefit

More Tax Saving as compare to sole proprietor business form.

Sharing of Risk

Individuals having same business goal can form and share risk & rewards.

Compliances & Disclosure

Least compliance & disclosure required as compare to other business form.

How partnership firm is good business option for my business?

With the synergy of business partner you may boostastonish growth in your business. Forming a partnership deed is a quickest way to wrap up legally all agreed terms among partners such as profit/loss sharing ratio, capital contribution, remuneration, etc and kick start the business formally. Find out more

Upload the required documents & information to our web portal

Choose Package and Pay online with different payments modes available

We professionally draft and share the deed for your confirmation

Discussion over the telephone with legal expert

Help in execute partnership deed on stamp paper.

Apply PAN and TAN of Partnership firm

Documents Required

Identity Proof

Election Id Card

Nature of Business

Address of Business

Capital Contribution

PACKAGES

Basic

1999
Plus taxes

Draft & Execute Partnership Deed

Obtain Firm PAN & TAN

Current Bank Account*

Standard

3499
Plus taxes

Draft & Execute Partnership Deed

Obtain Firm PAN & TAN

Current Bank Account*

GST Registration

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Draft & Execute Partnership Deed

Obtain Firm PAN & TAN

Current Bank Account*

GST Registration

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frequently asked questions
Q. What is partnership firm?
Q. How much stamp duty attract on my partnership firm deed ?
Q. What is the legal proof of partnership firm?
Q. Can i name my partnership firm whatever i want?
Q. Is the liability of the partners limited in partnership firm?
Q. Do i need to register my partnership firm with state authority ?
Q. Do you provide this service in my town?
Q. Do I need to physically present for the process?

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Noted: The Partnership Firm Is Suitable For Small Business With 100% Indian Citizen Ownership. NRI/PIO Can Start A Partnership Firm on Non-Repatriation Basis. Foreigners And Non-Citizens Are Not Allowed To Form A Partnership.

Table Of Content

How to register a partnership firm in india

How to register a partnership firm in india

How to register a partnership firm in india

How to register a partnership firm in india

Arrange List of Documents For Firm Setup

The process starts with documentation of the partners and the Principal Place of Business, where the firm shall be operating its business in India. Ensure that the documents are updated and correct. We shall also require information in the Questionnaire For Partnership Formation.

Consideration of Name of the Firm

While keeping the Partnership Firm’s name, you should thoroughly check the name of existing business or trademarks. To check the name of an existing company or LLP, you may visit mca.gov.in, and for checking the trademark, the database visits mca.gov.in the Registrar of Trademarks’ website.

Drafting of Partnership Deed

The Partnership Agreement or the Deed is the constitution of the firm and is the primary document. The Deed of the Partnership must contain necessary covenants that determine the partners’ mutual rights and obligations among themselves. This document also specifies the capital and profit-sharing ratio and how the partners shall operate the firm. Our team of lawyers help startups in the drafting of the partnership deed.

Stamp Duty & Notary of Partnership Deed

After the draft partnership agreement is approved and adopted by the partner’s appropriate stamp duty, on the partnership deed has to be paid. The stamp duty/paper varies from state to state and depends on the firm’s capital. Finally, the partners signed the partnership deed in the presence of two witnesses, and after that, the deed should be notarised by presenting the same before a notary public.

PAN Card and TAN of the Firm

The application for allotment of Pan Number and Issue of the Partnership Firm’s Pan Card is made in Form No 49A. The TDS Number (TAN) of the firm is applied in Form No 49B, which is necessary to comply with the TDS Provisions

GST Registration of Partnership Firm

The GST is a tax on supply of goods or services and to comply with the GST Law provisions, the firm may need to get registered with the GST. Please refer to our dedicated webpage on GST Registration to know the threshold limit as may be applicable for seeking the GST Registration

Registration of Partnership Firm with ROF

Though registration of partnership firms is not mandatory under The Partnership Act, 1932, Section 69 of the act specifies the effect of Non-Registration. According to that, an unregistered firm shall not be able to recover any sum more than Rs. 100. Hence, for all practical purposes, the partnership firm’s registration with the Registrar of Firms is strongly recommended. We provide service to register the partnership firms with the ROF in select cities; however, our Basic and Silver Packs are available throughout India.

Partnership is a firm that comprised of two or more members who have decided to carry same business on an agreed manner. Here, partners supposed to share profit and loss and collectively responsible for any of the liability. The rules and regulations for partnership firm registration is controlled and maintained under Indian Partnership Act 1932. This form of corporate is one of the common and highly demanded in the Indian business market. With two or person you can start your business while getting registration as partnership firm. This form of company brings you with the simplest and easiest ways of carrying business without any risk of infringement.

The registering a partnership firm in India is being carried under the section 58 of the Indian Partnership Act by filing an application to Registrar office of company registration in the same state where the company’s head office is situated. There are several points that one needs to follow if one wants to apply for certificate of partnership firm registration. As in India a country with democratic corporate environment; it is mandatory to get register your company before commencing with any of the business tasks.

Registration Procedure for Partnership Firms in India

If the company is non-registered; then in case of any violation of acts by any of the third party or any other partner; the company could not claim or sue against the same. With registration; the company can reap the complete set of advantages in respect of legal rules.

A firm where the various partners decide the terms and conditions of the business operations and have many legal and compliance angles. This kind of matters are best solved by the Experts. That’s the reason why you should opt for All India ITR’s this plan and get your Partnership Firm registered, along with this also get the required documents handy.

Prices may differ according to your capital during the incorporation. The applicable price shall be informed to you by our tax expert during consultancy.

Services covered under this plan
  • Application of PAN
  • Drafting of Partnership deed
  • Filing of various documents along with deed with the registrar of firms
  • Registration certificate will be issued
  • Filing of the Affidavit with the registrar
Who can buy this plan?
  • A group of minimum two people having a business idea.
  • Small business that require resources by the multiple people
  • Any existing Partnership firm that is not registered

How the Plan works?

  • Buy the Plan
  • Consultation by the All India ITR’s Tax Experts
  • Upload the documents in the space provided
  • Drafting of Partnership deed
  • Application filing with the registrar
  • Receipt of the Registration Certificate
  • Estimated time of completion is 10 days

Information menu

Documents Required
  • Address Proof of the Partners of the Firm
  • Photo ID proofs of partners of the Firm
  • If the office space is rented, then the rent agreement of the registered office is required
  • If the office space is rented, then the no objection certificate from the owner is required
  • Stamp paper for Partnership Agreement of State where Partnership firm is to be Incorporated
What does a Partnership Firm mean?

A Partnership firm is the one where two partners come together to carry out a business for profit. The partners are the co-owners of the firm and take care of the operations that are governed by the Partnership deed.

Why is registration required for a Partnership firm?

All the partnership firms are governed by the Indian Partnership Act, 1932. Registration is not mandatory, but it is important due to the following reasons: –

  1. The partners cannot file a case against the firm or in the other partners, if the firm is not registered
  2. The unregistered firms or its partners can’t file a case against third party on breach of a contract, but the third party can file a case
  3. If there is any disagreement with the third party the unregistered firm or its partners cannot negotiate or claim a set off.
When is it suitable to register the Partnership Firm?

A partnership firm can be registered either at the time of its formation or even subsequently after that. The application for registration is supposed to be made to the registrar of firms of the region in which the business is situated. Generally, it is advisable to register the firm as soon as it is formed.

Is there any guideline on choosing name for the firm?

The name of a partnership firm should not contain any words which indicate the approval/support of the government other than a case where the government has given its written consent for the use of such words as part of the firm’s name. Key pointers:

  • The names must not be too identical or similar to the name of another existing firm doing similar business.
  • The name must not contain words like Crown, Emperor, Empress, Empire or any other word indicating government approval.
Who can incorporate LLP?

Minimum two partners are required for LLP registration. Any individual or body corporate may be a partner in a LLP.

Another way to start a business is to form a partnership firm where two or more persons join hands to carry out a business for profit. The partnership firm is governed under the Indian Partnership Act, 1932. It is owned, controlled and managed by the partners of the firm. In other words, individuals come together and pool capital and skills and organize a business which is called partnership firm. A partnership deed is sufficient to create a partnership firm. The partnership firm is of two types i.e. registered partnership firm and un-registered partnership firm.

It is not necessary to get the firm registered however, preferable to get the partnership firm registered under the Indian Partnership Act, 1932. This is because if the firm is not registered partners cannot file a case in any court against the firm or the partners. Registration of the partnership firm is voluntary in most of the states. In Maharashtra,registration of the partnership firm is almost compulsory. At Legaljini, we can help you to form registered or un-registered partnership firm in India.

Advantages of partnership firm formation and registration in india – legaljini

Easy formation:

Partnership is a contractual agreement between the partners to run the an enterprise. Legal formalities associated with the formation are minimal. It is one of the simplest and economical ways to form and operate.

Name registration:

The proprietorship firm can be named after the owners. The firm is nothing but the abbreviation of partners or any good trade name which can help business can be used to grow business, subject to availability under Trademark and/or Domain Registry. The partnership firm can choose any name of its choice and it should not infringe a registered trademark. A firm name shall not contain any of the following words – namely – “Crown”, “Emperor”, “Empress”, “Empire”, “Imperial”, “King”, “Queen”, “Royal”, or words expressing or implying the sanction, approval or patronage of Government, except when the State Government signifies its consent to the use of such words as part of the firm name by order in writing.

More capital available:

Due to more number of members, it may be possible to pool together more resources. In other words, partners can contribute more capital, more efforts and more time for the business.

“Partnership” is the relation between two or more persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Two or more parties come together with a formal agreement (known as Partnership Deed) where the roles, duties and the share of each partner is explicitly defined.Persons who have agreed to enter into partnership are called “PARTNERS” and collectivelya “FIRM”The risk and responsibilities are shared amongst the Partners.

Partnerships in India is governed by the Indian Partnership Act, 1932. Partnership Act, 1932 defines the structure of a Partnership Firm by providing all the necessary provisions to run the same. The Act validates both registered and unregistered partnership firms in India.

Benefits of forming a PartnershipFirm

Forming a Partnership Firm offers many benefits.

  • Easy to Start
  • Minimal Regulatory Compliance
  • Operating Flexibility for Partners
  • Various Financial Returns for the Partners

Requirements forForming a PartnershipFirm

To form a PartnershipFirm will require the following.

  • Minimum 2 Partners
  • No Capital Requirement

Detailed Registration Process

  • Step 1: Submit all the required documents
  • Step 2: Drafting a Partnership Deed
  • Step 3: Payment of Stamp Duty on Deed
  • Step 4: Notarisation of Partnership Deed
  • Step 5: Apply for PAN and TAN of the Firm
  • Step 6: Certificate of Registration from RoF
  • Step 7: Open a Current Bank account on the Firm’s name

Documents required for registering a Partnership Firm

Listed below are the documents that are required for registering a Partnership Firm

Want to register your partnership business?
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What is a Partnership firm ?

A partnership is a type of business organization in which two or more people come together to run and operate a Firm in accordance with the conditions and purposes set out in the partnership deed.

Partnership deed is an agreement between the partners in which rights, duties, profits shares and other obligations of each partner is mentioned.

A Partnership is easy to form, and the compliance is minimal as compared to companies.

Table Of Contents

An Overview

Indian Partnership Act, 1932 governs the partnerships. Registration of partnership firm is optional and at the discretion of the partners.
By introducing a limited liability partnership (LLP), one may opine that Partnership firms has lost relevance because partners have unlimited liability, which means they are personally liable for the debts of the business which is not in case of LLP.
However, Partnership Firms are preferred since there are low costs of setting up the business and minimal compliance requirements, which makes it a sensible option for home/closed family businesses that are unlikely to take on any debt. Registration with Registrar of firms (ROF) is optional for Partnerships but advisable.

(6) The absence of a separate legal status: A company is not an artificial person like a public limited company. He is not recognized as a person by law. The existence of the law firm is linked to the partners. The insolvency of the partner is the insolvency of the company. A partnership is easy to form because there is no need to complete complex business formalities. Registration of the partnership is not mandatory and is at the discretion of the partners, whether or not they wish to register the company /s/documents-required-partnership-registration-indiapartnership. But a firm of people cannot claim legal benefits if it is not registered, so it is always advisable to register it. The documents required for the establishment of a partnership (whether registered or not) are: – The registration of the partnership can be done at any time – before the creation of a company or at any time during the continuation of the company. (4) Restriction of transferability of interests: A partner may not transfer his shares to a third party without the consent of all the partners. A partner also does not have the right to bring a new partner without the consent of another partner. This shows that there is a restriction on the transfer of interest. In India, the course of partnerships and partnerships from creation to dissolution is governed and controlled by the provisions of the Indian Partnership Act, 1932. In this context, various features and characteristics of the partnership firm are as follows:[i] [i] Kaushika U, Characteristics of the partnership cabinet, ECONOMIC DISCUSSION (22 February 2020, 09:25), www.economicsdiscussion.net/partnership-firm/features-of-partnership-firm/31492.

An additional agreement is required if the total capital or investment of an individual partner changes. And if the partnership deed is registered, the changes must be notified to the RoF. [vii] Karan Batra, Procedure for creating a partnership deed and registering a partnership firm, CHJARTERED CLUB (22 February 2020, 11:38), www.charteredclub.com/register-partnership-deed/. 8. Letter of approval on letterhead from the company authorizing a partner as an authorized signatory for the bank account. (9) Limited number of partners: Since the number of partners in the banking sector is limited to 10 and, in the case of another company, to 20. The capital that can be raised by a partnership is limited In this context, partnership companies are the most popular forms of business organizations in India for partner entrepreneurs. It only takes 2 or more people to start a business. [xiv] Attorney John, Landmark Judgment: Effects of non-registration of partnership firm, PATH LEGAL (February 22, 2020, 12:50 p.m.), www.pathlegal.in/Landmark-Judgement-Effects-of-non-registration-of-partnershi-blog-1181082.

The registration of partnerships is crucial because the nature of partnerships is uncertain. All clauses, when pronounced, create a sense of transparency. For this reason, it is recommended to create a balanced partnership agreement for the partners. Here are the essential features if you are wondering how to start a partnership company: Address Proof of company – If the headquarters is rented, the rental agreement and an electricity bill (utility bill, water bill, property tax bill, gas receipt, etc.) must be submitted. ALSO CNP of the owner is submitted. The limited liability company is an ideal option to create a safer structure than the general partnership. It maintains limited liabilities among shareholders. The partnership agreement should include a specific exit plan. It should define that the Registrar reviews your application and documents. If everything is in order, the registrar will officially register your partnership company. In a few weeks, the official registration certificate will be sent to your business address. The partnership firm must be registered with the firm registrar (RoF), who is responsible for establishing the partnership.

Registration of the partnership involves the payment of government fees to the registrar, which vary from state to state depending on state law. .

How to register a partnership firm in india

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How to register a partnership firm in india

Partnership Firm Registration in India

Partnership Company in India register under Indian Partnership Act, 1932 as per section 4 of the Act.to start a partnership firm, partners need to enter into an agreement which is known as partnership agreement / deed. Partnership firm is a relationship between two or more person who have agreed to share business profit and loss.
Partnership firm in India is a contract between its partners for working together and sharing its profit and loss. Partnership is a type of contract is does not arise from status, operation of act or inheritance. In a partnership deed serves an evidence of terms and conditions between its partners which reduces chances of dispute amongst partners.for partnership firm in India all law and aspects of partnership covered under the Indian Partnership Act 1932. This act define that partnership as “the relationship between two or more parties who have to agreed to start business in partnership for achieve some common objective and share the all profit and loss of the business.

Important Point of a Partnership-

1.Formation of Partnership- A partnership is not separate legal entity. But as per Partnership Act firm must be formed through a legal agreement between partners. Its business of the firm must be legal and lawful and object should be profit If person work together for charity and social work will not be a partnership.

2.Liability of partners- In the partnership unlimited liability of its partners .it mean partners are personally liable for the firm for the payment of the dues and personal assets can be liquidated to fulfill dues of the firm. If dues is recovered form one partner then he can claim to the other partners for their share of dues as per partnership agreement between them.

3.Number of partners- As per Indian partnership Act 1932 at least two people are required for a partnership. The Act does not define about maximum number of partners in partnership firm but companies act define maximum number of partners for banking business its 10 and for other business its 20.

4.Continuity of firm-In partnership firm the death, retirement, bankruptcy, insolvency or insanity of a partner firm will be dissolve. if the remaining partners want to continue the firm then need to draw a new contract.

5.Mutual agreement-In partnership firm all partners run business by mutual agreement. it mean every partner act as a agent in partnership firm .

Type of Partners-

All partners in firm are not have same responsibilities and function. there can be various types of partners in a firm.

1.Active Partner:– Active partner are those partner who take active participation in the business of the firm. He participates in the day to day activity .

2.Dormant Partner:– dormant partner as a sleeping partner. Dormant partner will not participate in day to day activity of firm. But he will share profit in the firm .

3.Nominal Partner:– this type of partner in a firm only for Name. he allow the firm to use his name for goodwill. And he is not in sharing in profit and not in contribution of capital.

Benefit in Partnership firm In india-

1.Formation of partnership firm is easy as compare to other business form.