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Partnership Firm Registration

Online Process | Avail Free Consultation

  1. Partnership Deed Drafting
  2. Partnership Deed Notarization
  3. PAN Card & TAN Number
  4. GST Registration

Start your Partnership Firm easily with our experience of 14+ years of delivering quality professional services. Our dedicated team will help you to register your partnership firm across India. We will extend our support in Documentation, Preparation, filing and subsequent Follow-up with the registrar of firms.

Register Your Partnership @ Rs. 5,999/- Partnership Firm Registration
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Partnership Firm Registration

Partnership Firm Registration

To start a Partnership firm, partners need to enter into an agreement which is popularly known as Partnership Deed. Different states impose different stamp duty on the partnership agreements/deeds, it means while creating a partnership instrument (Deed) the partners must purchase stamp paper of appropriate value as may be applicable in the respective state, to be annexed with the agreement. An agreement can further be notarized. Though registration of partnership Firm is not mandatory under The Partnership Act, 1932, however, 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, it is strongly recommended to register the partnership firm with the registrar of firms (ROF).

Partnership Firm Registration

Requirement to Start a Partnership Firm

Minimum Two Person

Minimum Two Person

Two person is needed to become partners of the firm. However, maximum 20 partners are allowed in a firm (10 in banking business)

No FDI is Allowed

No FDI is Allowed

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

No Minimum Capital

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.

Unique Name

Unique Name

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.

Pricing (All Inclusive)

BASIC PACK

2 - 7 Days
Rs. 5,999/-
  • Partnership Deed Drafting
  • Partnership Deed Notarization
  • PAN Card & TAN Number
  • GST Registration

SILVER PACK

Best Seller
Rs. 9,999/-
  • Basic Pack +
  • MSME Registration
  • GST Return for Six Month
  • TDS Return for Six Month

GOLD PACK

Ultimate Package
Rs. 24,999/-
  • Silver Pack +
  • Firm Registration with ROF
  • Training & Customisation of A/c Software
  • Cloud A/c and GST Filing Software

List of Documents for Partnership Registration

  1. Two Photograph of Each Partnership
  2. PAN Card Copy of Partners
  3. Identity Proof (Voter ID / Driving License/ Passport)
  4. Address Proof (Bank Statement / Electricity, Mobile, Telephone Bill)
  5. Proof of Registered Office
  6. Utility Bill as Proof of Registered Address
  7. NOC From the owner of the premises

Download Forms for Partnership Registration

  1. Questionnaire - Partnership Registration    Questionnaire for partnership registration     Questionnaire for partnership registration    Questionnaire for partnership registration
  2. Form 1 (Partnership Act)   
  3. Sample Rent Agreement         
  4. NOC from Owner of the Premises         
  5. Consent for Rent Free Use      
  6. PAN Card Application Form - 49A    
  7. TDS Number Application Form - 49B  

Partnership Registration Process

01

SELECTION OF NAME

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.

02

DEED DRAFTING

Deed of Partnership is the constitution of the firm which determines the relationship of partners among themselves as well as the relation of partners with the firm.

03

DEED NOTARY

The Partnership Deed must be well drafted, and the signature of the partners be made on the agreement in the presence of witnesses before a Notary.

04

FIRM REGISTRATION

The signed partnership agreement along with the KYC of partners and premises proof is filed with the concerned Registrar of Firms, for its registration.

Videos on Partnership

COMPARE FORMS OF BUSINESS

Check advantages and disadvantages of Common Business Entity Types

  • +
    Separate legal entity
    • A Company is a separate legal entity separate from its promoters
    • An OPC is a separate legal entity separate from its promoters
    • An LLP is a separate legal entity separate from its promoters
    • A Partnership is a legal entity but not different from partners
    • The proprietor and the proprietorship business is the same thing
  • +
    Limited Liability
    • Shareholders of a Company are bound to pay only up to the capital they have subscribed to the company.
    • In OPC, unlike a proprietorship, the shareholder cannot be asked to pay beyond his subscribed capital
    • The partners of an LLP can be called upon to pay only up to the amount of capital they subscribed to.
    • There is no protection of limited liability, even the personal properties of partners are at risk for losses of business
    • The proprietor is the whole sole of the business, and his liability to the debts or losses of proprietorship is unlimited.
  • +
    Number of members
    • A Company can be opened with at least two people. However, the maximum number cannot be more than 200
    • In the case of OPC, Only one person can be a shareholder. He would be required to appoint a nominee.
    • With two partners an LLP can be incorporated, there is no limit on the maximum number of partners
    • A Partnership firm can start with a minimum of two partners, the, however, the maximum number is capped at 20
    • Only one person is required for proprietorship, also known as proprietor.
  • 2 - 200
  • 1
  • 2 - unlimited
  • 2 - 20
  • 1
  • +
    Number of Directors /DP
    • A company can be opened with at least two and a maximum of 15 directors. The same person can be a shareholder as well as director
    • At least one person must be appointed as director of the company. The shareholder and director may be the same person
    • The minimum two designated partner is required in an LLP & there is no limit to the maximum number.
    • There is no separation of ownership and management in case of a partnership. All partners are equally responsible for the conduct of business.
    • In case of a proprietorship, the proprietor is solely responsible for the conduct of business.
  • 2-15
  • 1-15
  • 2 to unlimited
  • Not Applicable
  • Not Applicable
  • +
    Foreign Investment (FDI)
    • Foreign Direct Investment in case of a Private Limited Company is available under the automatic route.
    • FDI is not allowed in One Person Company
    • FDI in LLP Is permitted subject to prior approval from the central government
    • FDI is not allowed in Partnership Firm
    • FDI is not allowed in proprietorship Business.
  • +
    Ownership Transfer-ability
    • The shareholding of a Pvt Ltd Company is easily transferable
    • OPC Shares can be transferred to new shareholder along with the nominee
    • In LLP share of a partner can be transferred with the consent of all other partners.
    • Not Possible, every admission or removal of partner amounts to the new firm.
    • Not Applicable
  • +
    Perpetual Existence
    • A Company exists beyond the life of its owners /shareholder. After the death, the shares transmits to legal heirs
    • OPC Continues to exist even after the death of its only shareholder, as it passes to the nominee.
    • The LLP also have perpetual existence and exists beyond the life of the designated partner
    • No perpetual existence, with the death of a partner, the partnership ends.
    • No perpetual existence, with the death of the proprietor, it ends.
  • +
    Tax Benefits
    • The company tax rate is flat at 25% on its profits
    • The company tax rate is 25% on its profits
    • LLP Income Tax Rate is 30% on its profits
    • Partnership firms are taxed at 30% on its profits
    • For a small business with low turnover, there is the benefit of individual tax slabs
  • Effective
  • Effective
  • Low
  • Low
  • Good
  • +
    Statutory Compliance
    • The company is required to file an annual return, balance sheet to ROC and ITR around the month of September
    • OPC is required to file an annual return, balance sheet to ROC and ITR around the month of September
    • LLP have to file an annual return in form 11 and financial statement in Form 8 and ITR
    • Only ITR is to be filed
    • ITR is required to be filed if the taxable income is more than 2.5 Lac
  • High
  • High
  • Low
  • Minimum
  • Minimum
  • Formation Cost
  • 2,999/-
  • 2,999/-
  • 2,999/-
  • 5,999/-
  • 2,499/-

Common Registration or Licenses for Partnership

Shops & Establishment Registration

Shops & Establishment Registration

Every shop and the commercial establishment is required to obtain establishment registration with the Labour Department within 30 days of starting their business. It is mandatory for all states in India.

Trade License

Trade License

To ensures that the citizens are not adversely affected by health hazard and nuisance by the improper carrying of trade a License is necessary from the municipality within 30 days of starting the business.

Professional Tax Registration

Professional Tax Registration

Majority of the state governments have passed specific legislation to impose a tax on profession, employment of calling of any nature, however, it can not be more than Rs. 2500 per annum.

GST Registration

Goods and Services Tax (GST)

GST Registration is mandatory for every business engaged in providing services or supply of goods, where the turnover exceeds Rs. 20 Lac or does even a single transaction in an interstate trade.

Food License

Food License / FSSAI Registration

If you are engaged in a business of manufacturing, trading, storing or dealing in any manner of food items, then the state level FSSAI registration or Central License is mandatory based on the turnover.

Drug License

Drug License

Wholesale or Retail Drug License is location-based and is granted by the State Government based on fulfilling certain norms and criteria. No entity can start or continue sale/trade of Drugs without drug license.

Private Security Agency License

Private Security Agency License

Private Security Agency is a lucrative business with immense potential, however, it can be started or continued only after obtaining a license from the competent authority as designated by the state government.

Import Export Code

Import Export Code (IEC)

Import Export Code (IEC) is a ten-digit pan based registration with the DGFT. IEC is a mandatory prerequisite to starting a business of Import or Export in India. Only one IEC code is issued against a pan.

FAQ's

1.
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.

2.
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.

3.
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.

4.
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.

  1. Only a registered partnership firm can claim a setoff
  2. An unregistered partnership cannot recover any sum due from third parties if the amount in question is more than Rs. 100/-
  3. Only a registered partnership firm can file a legal suit in the court of law for the enforcement of rights against partners.
  4. 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.

5.
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.

6.
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.

  1. The main object and activities of the Firm
  2. The effective date of the firm
  3. The duration of the Partnership Firm
  4. The clause relating Capital Contribution
  5. Profit sharing ratio of the partners
  6. Management and Administration of Partnership Firm
  7. How to resolve disputes
  8. The deed must be signed before two witnesses
  9. The deed should be notarized

7.
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.

8.
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.

9.
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

10.
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.

11.
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.

12.
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.

13.
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)

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