Documentation - Day - 1
The process starts with documentation of the partners and the place of business where from where the firm shall be operating its business in India. Ensure that the documents are updated and correct. The list of documents required is provided above for your reference. We shall also require information in the Questionnaire For Partnership Formation.
Selection of Name - Day - 1
The name of the partnership firm should be cross-checked with the trademark registry to avoid any infringement of someone else Trademark or brand name. The selection of a proper name should be starting point, we search the proposed name of the firm in the trademark register to avoid any infringement on someone else's trademark. To learn more on trademark click here
Drafting of Partnership Deed - Day - 1
The Partnership Agreement or the Deed is the main document of the firm and is also considered as the constitution of the firm which determines the mutual rights of the partners among themselves. This document also specifies the capital and profit sharing ratio and how the firm shall be operated by the partners.
Payment of Stamp Duty for the Partnership Deed - Day - 1
After the draft partnership agreement is approved and adopted by the parties the stamp duty on the partnership deed has to be paid which varies from state to state and on the capital of the partnership agreement. In none of our packages we have included the value of stamp duty and it is required to be paid by clients on actual basis.
Signing of Partnership & Notary of Deed - Day - 2
Finally the partnership deed is signed by the partners in the presence of two witnesses and thereafter the deed should be notarised by presenting the same before a notary public.
PAN Number Allotment - Day - 2-7
The partnership firm needs to make an application in the prescribed form before the income tax department for the allotment of PAN, The acknowledgement of pan application for the partnership firm is received within the same day, however, the pan is allotted within a week time.
TAN Number Allotment - Day - 2-7
TAN number is a permanent number allotted to business for complying with the provisions of withholding tax. You are required to deduct TDS while making payments, hence the next step is to obtain TAN number, which is mandatory to submit TDS Returns.
Important Points of Partnership Form of Business
Two person is needed to become partners of the firm. However, maximum 20 partners are allowed in a firm (10 in banking business)
Foreign investment in a partnership firm is not permitted. In the firm, only Indian citizen can become the partner and start the partnership firm.
No minimum capital is prescribed, it must be based on the business requirements. The Stamp Duty on the deed is based on the capital of the firm.
Name of the firm should be unique, and it must not same or similar to the name of any existing trademark which is registered or applied.
Documents Required For Partnership Registration
Basic Documents to Start a Partnership
- Notarised Partnership Agreement
- Proof of Registered Address
- It should not be older than 2 months
- NOC from the Owner of Premises
Documents of all partners of the Firm
- Two Photograph
- Copy of PAN Card
- Valid Identity Proof
- Latest Address Proof
Review of Setindiabiz
I am new at incorporation field but SETINDIABIZ help me out & I would like to mention especially for Ms Sana Parveen guided me all through the...See at Google
I was doubtful in the beginning to contact them for my work but they proved to be very professional and fast. I contacted SetIndiaBiz for...See at Google
Wonderful experience and a very professional bunch of people. To name some I have been recently dealing with Shaily Dhoudiyal, Suman Khowal...See at Google
Wonderful experience. Setindiabiz is very professional and efficient. Its executives are very friendly and helpful. Preeti who was handling...See at Google
Professionalism at its best. Every employee in this company is so energetic and punctual. you can rely on this company for sure...See at Google
Super fast service, They helped me in formation of my new company "Storaway Warehousing And Logistics Private Limited"...See at Google
The staff is really praiseworthy. I would like to mention specially for Ms Shaily Dhoundiyal guided me all through the process. she...See at Google
A good and professional company. I came to know about this company from Google. When I go through company profile and big company. My serviceSee at Google
Enthical company with finest of Staff , Specially Shailey Dhoundiyal. She helped a lot through out the process of registration ans incorporationSee at Google
Extremely Satisfied with the service. I came through this company in Google search. Initially I was hesitant about how would be the service... See at Google
Setbiz India made us very easy to deal with all documentation. Staff Shaily guided all through the process. Over all a Good team. Keep it up... See at Google
Sana parveen has been really efficient an quick in the process for KYC filing. Tremendous job.keep up the good work. All the best... See at Google
Setindiabiz truly committed to their statements .Their work is also very quick and on time and they even treat their customers in.... See at Google
All the work of my company has been done by Satindiabiz employees for the last 3 years. I am satisfied with their work. I thank to Shaily.... See at Google
My first experience today and it was really a wonderful experience. Quick updates and follow ups considering the criticality of the.... See at Google
I'm very happy with the services provided ms Nishtha walked me through some of the processing very patiently and kept regular updates. Thank you... See at Google
Shaily is prompt and cooperative, i had a smooth experience in filing my annual returns and also during LLP establishment. I thank her and wish good luck :-)... See at Google
All the work of my company has been done by Satindiabiz employees for the last 3 years. I am satisfied with their work. I thank to Shaily medm for the submission of my DIN KYC file... See at Google
They provide the best service for business registeration.Thank you so much Shaily for providing such a great and efficient assistance for my... See at Google
I had a very pleasant experience with SetIndiaBiz. Thanks to shaily and shubhlam who guided me step by step through the process... See at Google
Shaily and Khusboo have been great professionals, showing an amazin intent of delivering customer satisfaction.. I highly recommend SETINDIABIZ!.... See at Google
This company have a great service and my cs Sana Praveen mam is so good and very responsive person . Thank you setindiabiz and thank u Sona mam... See at Google
They give fast response to the customers and respect them and helps the customer in all the way in budget friendly manner... See at Google
They give fast response to the customers and respect them and helps the customer in all the way in budget friendly manner... See at Google
Good people but worst services. If you are startup please avoid them. There is lot of miscommunication and no proper information. They wont... See at Google
Excellent service, Very cooperative, Especially Harish sharma's way of talking and understanding your query is extremely nice. Thank you...See at Google
Excellent service, prompt response. Very professional approach to the entire process. Special thanks to Neha who made it very easy for me....See at Google
SETINDIABIG good services with in a short period of time, employees excellently coordinate with a clients Tq SARANYA and team for supporting...See at Google
Registration took just one day to complete. Speed of execution is key to start new business and Setindia understands the needs of...See at Google
They are truly committed to their statements .Their work is also very quick and on time and they even treat their customers in a very polite...See at Google
The executive person were incredible helpful and understanding of my views of situation and did everything they could to get me the Incorporation...See at Google
I am very satisfied with the work. which Sana Parveen had done. really appreciate for the fast process and. access. thanks to setindiabiz and...See at Google
Awesome great service! We are unexpected. my company get easy all legal documents through SetIndiabiz. They are provided best...See at Google
I have done my company registration at SETINDIABIZ along with TM and taken consultancy services for FDI . Services and guidance was...See at Google
I am very impressed with work delivery system of Setindiabiz & team. They're very much competent to guide any start Up in statutory...See at Google
Good company, good people gives compliance related services in very professional way and delight customer by their services. i very much...See at Google
Highly supporting system for new business.. thankyou SETINDIABIZ for providing every type of business related support to new in field...See at Google
Thank to all team members of SETINDIABIZ ..Your customer support is really like Backbone... Special thanks to "Mr. Praveen Singh" who is...See at Google
Big thanks to Kuldeep, Shaily and folks at SetIndiaBiz for registering my company within 7 days. Everything was handled professionally... See at Google
I appreciate your service and will surely recommend to my friends who are looking for registering their company . It was a excellent job... See at Google
Thanks For Helping In Registration of Company And Registration of GST. They Come Quickly Than Estimated Time. ................... See at Google
My notions were feeble to pay for online services before "SETINDIABIZ" experiences. However they utterly pay-off my each penny by their swift and... See at Google
Thank you SETINDIABIZ for all your help in registering my private limited company in Bangalore, very smooth and they made it very easy for me. ... See at Google
Very Good Service, Quick Qquality Work, Time completed, Low Cost Work, We be Happy. TSR ENGINEERING PVT LTD /Director........... See at Google
Interacted with Mr. Manav Gandhi for filing my gst returns. He was very courteous, polite and quick-to-action. Thank you for your...See at Google
perfection, sincerity, on timing means SETINDIABIZ. contacted several companies for my work online and offline but couldn't get anyone to...See at Google
Excellent services offered for Start Up Firms and also for existing companies. Hope SetIndiaBiz opens up more offices in Tier II cities and...See at Google
Excellent support from Manav Gandhi at SETINDIABIZ. He ensured to stay back in office till late night and complete our work at the earliest and...See at Google
Good work done by Mr manav gandhi ,he is more concerned about my work to be completed on time,loved his working. ...............See at Google
I always had a great experience with SetIndiaBiz. It is since 2 years that I am getting all my trademarks done through them......See at Google
Best legal service provider and flexibility in time commitment.All executives from sales to operations team: neha & Swati are really good in...See at Google
I would like to mention that Set India Biz is one of the best professional company I have worked with. All team members are customer focused and...See at Google
I believe with the relationship with SETINDIABIZ is worth value for money. Our account was managed by Proshanto and he has very proactive to support... See at Google
Overall it is good Experience. Representatives are very active. They will walk you through each and every process. They will help you with the...See at Google
Great service with understanding of budget and requirement of customer. A trustful firm for people who has basic knowledge of legal rules. ... See at Google
I highly appreciate the managers and co-workers as they are highly committed to their work. All the reports, forms and correspondence are... See at Google
I had very good experience of setting up my company. The team at SetIndiabiz are professional & understands need and executes at pace needed. ... See at Google
Setindiabiz is a Great Company for registration of PVT. LTD. , LLP or any other company. Their process is fast but due to Durga puja holiday my... See at Google
We got our documentation done by SetindiaBiz and we are really happy to have found the right consultancy. Really helpful, patient and ... See at Google
Perfection and quality makes SETINDIABIZ differ from other companies. Promptness is an additional quality of them. Hats-off guys. Good job...See at Google
I'm happy with the phone and the deal i got from the company. Speaking with the service team helped me get exactly what i was looking for... See at Google
Dedicated, supportive and understanding team. What else we need to get the jobs done? Thanks to Set India Biz for helping me. .......See at Google
Have a great pleasure, and experience with team 'SETINDIABIZ' knowledgeable and supporting staff. As per our requirement, They committed and...See at Google
It's amazing. It was easy to understand and work was completed smoothly. Liked there work and recommend everyone to give them a chance. The best...See at Google
Very Nice and great company, all the executives are so polite and professional, they know their work very well and they are master in them. ......See at Google
Reliable with service satisfaction, employees are very helping & cooperative. Am grateful & thank you to the entire team of SetIndiabiz was......See at Google
I have had a very good experience with them in incorporating my LLP. Sana Parveen from Delhi office has been very helpful and very much approachable.......See at Google
The complete team is amazing, a very co-operative and helpful. They will answer all your questions calmly even if you ask same thing million of times. ...See at Google
I should write here .. I'm really impressed about Ms. PUJA.. You're an asset to your company Setindiabiz... I'm writing most about the person...See at Google
Good company for dealing with startups especially for documentation and registration. On the time action and positive results. ........See at Google
Great people, culture, All of the team, including the managers are approachable, helpful, caring and hard working.....keep up the good work....!! ...See at Google
I would like to mention that Set India Biz is one of the best professional company I have worked with. All team members are customer focused...See at Google
Rhanks To Sana For Being An Best Supportive Cordinator All The Time. On Start Had face a Lot of Issues because of mumbai Office but then Got in...See at Google
Excellent service. Mainly, its the timely update needed which is supplied on regular intervals. Ms. Khushboo & Ms. Swati were very cooperative...See at Google
The support given to me by corporate lawyer Mr. Kishore is really commendable. He was very cooperative in her approach towards our requirement and...See at Google
I had a good experience with SetIndiaBiz for TM registration. Mr. Shubham who was dealing my case was very professional and clear about what is ...See at Google
REALLY FAST AND PROMPT SERVICE.VERY GOOD EXPERIENCE OF SETTING UP ALL THE REQUIREMENTS WITHOUT ANY HINDERANCE. .THANKS TO THE TEAM ESPECIALLY MR. ...See at Google
I hardly trust people in business society. However, the people in this company are exception. You can trust them blindly. They are unbelievably ...See at Google
Frequently Asked Questions
What is the difference between Partnership Firm and Other Forms of Business?
We have prepared a detailed and easy to understand comparative table showing availability of features and advantages of one form of business to that of others. The same can be found at the end of this page. Click here to go there.
What are the pre-requisites for Starting a Partnership Firm in India?
To start a partnership firm, the minimum number of partners is two, whereas the maximum number of partners can be 20. The partners must come together to carry on any legal business with the motive of earning profits.
What are the types of Partnership Firm?
The partnership business is regulated under Indian Partnership Act, 1932. Which prescribes possibility of two types of the firm, unregistered firm, and registered firm. An unregistered firm is formed by entering into an agreement between two competent persons, known as partners, where the firm is not registered with the registrar of firms. Whereas the firms which subsequently get registered with the registrar of firms by submitting the copy of partnership deed and KYC of partners and the registered office is known as the Registered Partnership Firm.
What are the advantages of a Registration of Partnership firm?
Though the Indian Partnership Act, 1932 does not make registration of partnership mandatory, section 69 places certain disadvantages to an unregistered firm. Following are the disadvantages of an unregistered firm.
- Only a registered partnership firm can claim a setoff
- An unregistered partnership cannot recover any sum due from third parties if the amount in question is more than Rs. 100/-
- Only a registered partnership firm can file a legal suit in the court of law for the enforcement of rights against partners.
- The partners of an unregistered firm cannot file suit against another partner of the firm or the firm itself.
Hence, we strongly advise registering the partnership firm. An unregistered firm can be registered at any time. Every state government has established the office of the registrar of firms, which is vested with the powers to register the firm and issue the Certificate of Registration of the Firm and a copy of the extracts of the register of firms where the partnership name has been entered.
Under which Government Authority, the application of Partnership Firm Registration is submitted?
The application for registration of partnership firm is filed with the Registrar of Firms having jurisdiction over the place of business of the partnership firm. The registrar of firms after receipt of the application complete in all aspects with all required documents registers the firm within 1-2 weeks and issues the Certificate of Registration of Firm.
What are important points to be included in the partnership deed for registration of the partnership firm?
The law does not provide any specific format for the partnership deed, it is up to the partners what they agree and reduces in writing at the time of starting their partnership firm. The partnership once entered can be changed any number of times. However, each amendment of the deed must be filed with the registrar for its registration. Below is the list of items which should form part of the agreement.
- The main object and activities of the Firm,
- The effective date of the firm,
- The duration of the Partnership Firm,
- The clause relating Capital Contribution,
- Profit sharing ratio of the partners,
- Management and Administration of Partnership Firm,
- How to resolve disputes,
- The deed must be signed before two witnesses,
- The deed should be notarized
What is the Stamp Duty on which Partnership Deed is made and is Notary on Partnership Deed necessary?
The stamp duty on the partnership deed varies from state to state, and within one state it further varies based on the capital of the firm. You must correctly consider the applicable stamp duty on the partnership deed. The notary of the deed is an essential requirement for partnership registration.
How to apply and get the PAN and TAN of the Partnership Firm?
The PAN is a ten-digit alphanumeric number allotted by the Income Tax Department, the application for pan card is filed in Form No 49A. The TAN is a number allotted for TDS Compliance, the application for TAN is filed in Form No 49B. Normally it takes around 6-10 days in PAN allotment and Pan Card Delivery.
Can I convert a Partnership Firm into a Private Limited Company or LLP?
Yes, a partnership firm can be converted easily into a Limited Liability Partnership or a Private Limited Company. The partnership is an old method of doing business; we always recommend to start a business in the Private Limited form
How easy is to start a partnership business in comparison to other forms of business?
A partnership business begins with the creation of an agreement by the partners. As the registration is not mandatory, the business can start on the same day of agreement of the partners. However, the Notarization of the agreement or its registration with the registrar of documents may be taken up later on. Similarly, the registration of firm with the registrar of firms can also be taken up in due course of time. Hence it can be rightly said that it's comparatively easy to start a partnership.
What is the law on Name of the Partnership, is there any restriction on keeping a particular name of the partnership firm?
A Partnership is started by its partners with a separate name in the deed, which is known as the name of the firm. While deciding a name, the care should be exercised to check if it conflicts with some one's else trademark. Our specialists shall be providing you with free consultancy on Name Check and how to protect Business Name, its Logo, Punchline, etc.
Do I have to file an annual return to the registrar of firms?
Unlike Limited Company or LLP, there is no need to file the annual return for a partnership firm. However, income Tax Return shall be necessary to be submitted at the end of the financial year and within Due Date of filing. There is no provision of audit under the partnership, Act hence a firm does not require to get its books audited. However, if the turnover crosses 2 Crore, then tax audit is mandatory.
Who makes decisions in the partnership firm?
Under partnership form of business, there is no separation of ownership and control. The partners act in confidence to each other and act of one partner is binding on another. Partners monitor and manage the firm without any interference. The decision making in case of a firm is relatively a fast process in comparison to that of the Private Limited company, Limited Liability Partnership (LLP)
Should a partnership firm be registered?
There is no provision under the partnership Act, 1932 which mandates the registration of partnership. However, the act itself provides for the procedure of registration of firm. Thus the registration is optional but highly recommended, as an unregistered firm shall not be able to recover any money in excess of INR 100/-. Apart from the above legal impediment, from the practical point of view also the firm should get registered in order to bring certainty in the relationship of partners and the firm per se.
Is a written partnership deed necessary to form a partnership firm?
No, it is not necessary. As the contract act does not makes it necessary to have the agreement in writing. However, it is always prudent to make a partnership deed to produce to the bank, income tax authorities and to clients with whom the partnership firm deals with. Apart from serving as a reference document a written partnership deed also helps in reducing conflict and confusion in due course of time.
Can a partnership firm be sued in the name of the firm?
Yes. A partnership firm can sue or be sued in its own name. The firm is treated separately from its partners. However, the partners do not enjoy limited liability as available in case of LLP or a company. In a situation where the firm is not in a position to discharge its liabilities, the partners shall be called in to pay the liabilities of the firm.
Can a partnership be constituted for a particular business undertaking?
Yes. A person may become a partner with another for a single adventure or undertaking. The term of partnership firm can be for a specific period or for the completion of a specific project or at will. The deed must have a specific mention about the tenure of the partnership agreement. The Even partnership which is created for a specific purpose can be closed before the term with the consent of all the partners.
Am I personally liable for my business under a sole proprietorship?
Yes. Unlike other incorporated business forms, you are personally liable for any of your sole proprietorship’s debts or legal judgments against your business. This means that in order to satisfy debts owed by your business, debt collectors can come after your personal assets, homes, cars, etc. For this reason, alone, you should be extremely cautious about setting up a sole proprietorship. Setindiabiz.com recommends One Person Company in place of proprietorship.common-question-bottom
Can one deal with one of the partners of a partnership firm?
Yes. The law presumes that each partner is an agent of the other and while dealing with third parties the partner is representing the partnership firm in good faith. The acts done by one partner is binding on another even if it is not in the knowledge of the other party.