Start a partnership firm in India quickly and within one working day. Our consultation and support are available nationwide. We assist in drafting the partnership deed and obtaining the firm’s PAN, TAN, and GST Registration. Talk to our startup advisors for a quick and hassle-free start to your firm.
We are a professional consulting firm specialising in company registration, taxation, accounting, payroll, compliance, and intellectual property rights (IPR) services to assist new and existing businesses in India. We provide our professional services at a reasonable fee, explaining the eligibility, process, and documents required for setting up and maintaining a business. We also prepare and file necessary applications with relevant government agencies such as the Registrar of Companies (ROC) and the Income Tax Department. We do not directly provide government documents or represent ourselves as a government agency.
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A Partnership Firm is a business entity established and regulated under the Indian Partnership Act of 1932. The Act defines a “Partnership” as a relation between two or more individuals who have agreed to share the profits and liabilities of a business. Such individuals are called “partners”, and the business they carry out in “Partnership” with one another is called a Partnership Firm. The basis of a Partnership Firm formation is a Registered Partnership Deed. It is a written document where all the terms and conditions mutually agreed between the partners are mentioned.
To establish a Partnership Firm, you need to meet specific minimum requirements. These include the number of partners, the firm’s name, and its registered office. Below is the table listing the minimum requirements for forming a partnership firm and the documents required for registration as a partnership firm in India. The partners must fulfil both of these requirements to establish, incorporate, and operate a Partnership firm smoothly.
PAN CardsAadhar CardsColoured PhotographsID ProofsAddress ProofsProof of AddressNOC from the Property OwnerRent Agreement/Property Tax ReceiptPartnership DeedNote: We recommend you send the soft copies of the documents. Also, please fill out the questionnaire our startup advisors will share with you. We will verify the information and legal documents sent to us. Please get in touch with us for further clarification.
Registering a partnership firm in India requires filing an application with the Registrar of Firms (ROF) in the prescribed mode. Where the mode is online, applications can be accessed, filled out, and submitted on the Registrar of Firms (ROF) website. Where the mode is offline, the applicant must visit the ROF’s office in the state and apply manually. Regardless of the mode of application, the applicant must navigate through the following steps to complete the Partnership Firm Registration process.
The Partnership Registration process in India starts with preparing the necessary documentation. The primary KYC documents of all partners, such as Aadhar, PAN, Residential address proof, and a colour photograph, are required. For the proof of the Principal Place of business, any utility bill of the premises along with the owner’s NOC is required.
The name of your partnership firm must be unique and communicative in terms of its brand and business activity. Moreover, it should not be identical or similar to the name of an existing business or a registered trademark. To check the availability of the selected name, you can use the name search tool on the MCA and IP India websites.
Partnership Deed is the legal basis for partnership firm formation in India. The deed is considered valid and legal only when appropriate stamp duty as per the state stamp act is paid. All partners must sign the Partnership Deed in the presence of the notary and two other witnesses.
The application for allotment of the firm’s PAN, a crucial identifier for Income Tax compliance, is made in Form 49A. TAN is equally important for TDS compliance, which is necessary for any business. The application for TAN is filed in Form 49B. The Government assigns PAN and TAN to the firm, marking a significant step in the registration process
GST registration for partnership firms is necessary to fulfil GST-related compliance requirements, such as paying taxes and filing GST returns. For this, an appropriate application with the required documents is filed with the GSTN for registration under the GST. After the GST registration is granted, the Department allotted a unique GSTIN to the firm. This GSTIN can be used for all GST-related activities in the future.
To register a Partnership firm in India, you must first check your state’s application mode. If your state allows online registration of a Partnership Firm, you can visit the official ROF website and apply along with the necessary documents and government fees. However, if the application mode is offline, you need to visit the office of the Registrar of Firms (ROF) to apply for partnership firm registration. After the application is processed, the ROF will register your firm and issue a Partnership Firm Registration Certificate in its name.
Although registration of partnership firms is optional in India, Section 69 of the Partnership Act lists various adverse consequences. One of the most significant disadvantages of an unregistered partnership firm is its inability to institute a legal suit to recover anything more than ₹100 from a debtor. This is why every partnership firm must register with the Registrar of Firms. Please note that notary attestation or registration of the partnership agreement before the registrar of documents and deeds under the Registration Act does not amount to firm registration per se. Therefore, be careful while setting up the firm. Our expert advisors are equipped to help you set up your partnership business in India.
The table below compares a Partnership Firm structure with one of the most popular choices of entrepreneurs, viz., a Private Limited Company. By highlighting the advantages and disadvantages of the partnership firm against those of a company, we have attempted to help you make an informed choice of business structure based on your needs, suitability, and resources.
Easy to Step UpIncorporation is an OptionFlexible ManagementLow Cost of OperationsShared Liabilities Between PartnersLimited Control by External AuthoritiesEasy to DissolvePrivacy in Firm’s Affairs
Unrestricted LiabilityLimited Investment PotentialLimited Period of ExistenceNo Separate Management AuthorityLimited LiabilityHigh Investment PotentialPerpetual ExistenceLesser CompliancesSeparate Management StructureExhaustive Incorporation ProcessHigh Cost of OperationsHigh Number of CompliancesLong & Costly Winding Up ProcessLack of PrivacyComplex Decision-Making ProcessHigh TaxationGreater Social ResponsibilitySeveral External Regulations
