Compliance CalendarPartnership Firm Registration
Easy Process & Transparent Fee
The partnership is the simplest form of business for more than one owner. You can start functioning as a partnership firm within the same day. Get your partnership deed same day, apply for a PAN and open a Bank Account. We will help you at all stages.
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Start a Partnership Firm
Select Suitable Package Format
Basic
Includes essential services required for setting up a Partnership Firm. Inclusions are
₹ 3,499/-
- Partnership Deed Drafting ? The partnership deed is the primary agreement between the partners that defines their rights and liabilities. Our specialist legal team shall draft the deed in compliance with the Partnership Act and give effect to Income Tax Provisions.
- PAN Card of Firm ? A Partnership Firm is considered as a separate and distinct taxable person; being an assessee under the Income Tax Act, PAN Card of the Firm is necessary.
- TAN/TDS Number of Firm ? TDS is deducted while making payments to the parties. For TDS Deposit and to file TDS Return the TAN Number is necessary.
Silver
To start the business, you need the following additional registration for your firm.
₹ 6,499/-
- Everything from Basic Pack +
- GST Registraton ? GST Registration is necessary to supply goods or Services, and it is mandatory to carry out interstate trade even if the turnover is low. For any international business, the GST is required from the beginning itself.
- MSME Registration ? When a partnership gets registered as MSME, also known as Udyam Registration, it is entitled to several benefits from the government, including but not limited to 50% concession in filing IPR applications.
Gold
The unregistered firm can not recover more than Rs. 100/ Hence registration of the Firm is recommended.
₹ 19,999/-
- Everything from Silver Pack +
- Registration of FIRM with ROF ? Though the registration of a firm with the Registrar of Firms is optional, It is necessary to protect its interest and its partners. An unregistered firm can not claim dues of more than Rs. 100 from defaulting parties.
- Free Consulation on GST ? Startups may have several queries concerning regulations and taxation of business. We offer a free consultation to support the budding entrepreneur.
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
Package Inclusions
Checklist
Step Wise Process
Documents Required Partnership Firm Registration
Start your Partnership Firm quickly with our experience of 18+ years of delivering quality professional services. Our dedicated team will help you to draft the partnership deed for your partnership firm across India. The registration of the firm is optional. However, it would be best if you get the firm registered with the Registrar of Firms.
Items Included With All Plans
- Partnership Deed
- Firm Name Review
- Pan Card of Firm
- TDS Number of Firm
.
- CA/Lawyer Consultation
- Relationship Manager
- 100% Online Process
- Gold Pack in Select Cities
Not Included in any Plan
- Translation of Deed
- Stamp Duty / Stamp Paper
- Local Notary Charges
- Government/ROF Fee
Basic Requirements to Start a Partnership Firm
1
Minimum Two Person: A minimum of two partners is required to start a Partnership Firm. The maximum number of partners allowed for a partnership firm in India is twenty partners. However, no foreigner is allowed as partners in the partnership firm.
2
Capital Requirement: There is no minimum or maximum capital prescribed under the Partnership Act 1932. You can keep the capital of the firm as per the business requirements. The stamp duty on the deed depends on the capital and the state.
3
Unique Name: You should select the name of the partnership firm that is unique & which reflects the main business activity. Ensure that the proposed name is not the same or similar to any existing business or trademark registered or applied.
4
Business Address: Address at which the firm carries on its usual business or maintains its books of account is known as its Principal Place of Business. The latest proof of the place of business along with a NOC from the premises owner is required.
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Stepwise Process & Time Line for Partnership Firm Registration
To start a partnership firm, Following is the stepwise process of Partnership Firm Registration starting with documentation to the registration of the firm by the registrar of the partnership firms in India
Start Your Partnership Firm Easily
We have packages starting Rs. 3499 + GST
All the govt. fee, stamp duty & notary charges on actual basis
List of Documents Required For Partnership Firm Registration
| A. Basic Documents to Start a Partnership | B. Documents of all partners of the Firm |
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Frequently Asked Questions
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.
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.
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.
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.
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.
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
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.
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.
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
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.
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.
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.
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)
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.
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.
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.
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.
18.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
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.
