Partnership Firm Registration.
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Start Partnership Firm in one day, anywhere in India. We assist in drafting the partnership deed and obtaining the PAN and TAN of the firm. Talk to our start-up advisors for a quick and hassle-free start of your firm.
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Pricing
(Simple & Clear Pricing. No Hidden Charges)
Basic
Includes essential services required for setting up a Partnership Firm
₹4,499/-
₹10,000/-
SAVE 50%
- Consultation With Expert
- Partnership Deed Drafting
- PAN Card of Firm
- TAN/TDS Number of Firm
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Silver
Perfect for startups to start operations immediately after setting up of the firm.
₹7,999/-
₹20,000/-
SAVE 40%
- Everything of Basic Pack +
- Bank A/c Opening Support
- GST Registration
- MSME Registration
Gold
Ultimate pack for incorporation of a company with no worries for six months.
₹20,999/-
₹30,000/-
SAVE 30%
- Everything from Silver Pack +
- Registration of FIRM with ROF
- 3 Months GST Return Filing
- 3 Months TDS Return Filing
The Stamp Duty, Government Fee (if any) & Notary of Partnership Deed is not included. Gold Pack is available only in Delhi, Gurugram, Noida, Ghaziabad, Mumbai, Bangalore & Hyderabad Only.
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Partnership Firm Registration
A partnership firm is a business entity regulated by the Partnership Act, 1932. A firm is constituted when a group of investors get together and mutually agree on terms related to capital sharing, profit sharing, sharing of liabilities, rights and obligations of partners, interests of partners in the firm, and the manner in which partners shall be admitted and expelled out of the firm. The existence of the firm is based on the existence of the deed.
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Key decisions to be taken while setting up a partnership firm
- How many partners shall collectively own the firm?
- What amount shall each partner contribute?
- How will profits and liabilities be shared among them?
- How many partners shall be actively involved in the management of the business?
- Whether partnership firm will be registered or not?
- What will be the proposed business activity of the firm?
- What will be the name of the firm?
- What will be the authorised capital of the firm?
Checklist for Partnership Firm Registration
Although Partnership Firm Registration is optional in India, there are certain prerequisites that must be fulfilled, before registering the firm, as mandated by the Partnership Act, 1932. These requirements deal with the number of partners, designated partners, name, address, and capital of the firm. A list of such prerequisites for partnership firm registration has been mentioned below.
- Minimum 2 Partners
- Maximum 20 Partners
- A registered address of the firm
- New, unique and valid name
- Some amount of capital
Process of Partnership Firm Registration
Partnership Firm registration in India is optional under the Partnership Act, 1932. However, to avail the benefits of a number of government schemes and initiatives, it is highly recommended that firms do get registered with the appropriate authority in the manner prescribed under law. We have elaborated the stepwise process of partnership firm registration below
STEP 1 – Documentation
The process starts of partnership firm registration begins with documentation of the partners and the Registered address of the firm. A complete list of the documents required form Partnership Registration has been mentioned below. You shall have to ensure that the documents are authentic and updated. Please fill out the questionnaire that we share with you and all the documents that we ask for at help@setindiabiz.com, after quoting the details of the order you’ve placed. STEP 2 – Consideration of Name of the Firm
The name of your Partnership Firm must be unique and communicative of the brand and business activity of the firm. Moreover, it should not be identical to an existing business and an applied or registered trademark. You can check the availability of proposed names on publicly available databases of existing companies and LLPs available on MCA website, and registered trademarks available on IP India Portal. Register the name of your firm as a trademark to prevent its misuse and plagiarism. STEP 3 – Drafting of Partnership Deed
The Partnership Agreement or the Deed is the primary document that is the evidence of the constitution of the firm. The partnership deed must contain necessary covenants that determine the mutual rights and obligations that the partners share among themselves. This document also specifies the capital profit-sharing ratios, and the manner in which the partners shall operate their firm. We have a team of skilled and experienced lawyers to help you draft the partnership deed. STEP 4 – Stamp Duty & Notary of Partnership Deed
After the drafting of the partnership agreement, it must be signed by all partners in the presence of a notary and two witnesses. The notary will then stamp the document to make it valid and legally acceptable. The charges to be paid shall include stamp duty, cost of stamp paper on which the deed has been drafted, and the fee of the notary. All these charges vary from state to state and depend on the firm’s authorised capital as well. STEP 5 – PAN Card and TAN of the Firm
The application for allotment of Pan Number and issuance of the Pan Card for the Partnership Firm is made in Form No 49A. The application for the TAN number allotted to the firm is filled in Form No 49B. While the PAN card is a necessary document required for income tax compliances, the TAN number is allotted to entitle businesses to deduct and collect taxes at source. STEP 6 – GST Registration of Partnership Firm
The goods and services tax is paid on the supply of goods or services in India. To fulfil compliances related to GST, like payment of taxes and filing of GST returns, the firm must obtain registration under the GST Act. Refer to our dedicated webpage on GST Registration to learn more about the eligibility and applicability of GST registration for businesses in India. STEP 7 – Registration of Partnership Firm with ROF
Though Partnership Firm Registration is optional, Section 69 of the Partnership Act specifies the adverse consequences of non registration of partnership firm. An unregistered firm shall not be able to recover any amount exceeding Rs.100 from third parties. Moreover, it will not be able to reap the benefits of favorable government schemes and initiatives meant for small business in India. Documents Required for Partnership Firm Registration
The application for Partnership firm registration in India must be supported by documents of all partners, the registered address of the business premises, and other legal drafts. A failure to produce any of the required documents might result in the rejection of your application by the Registrar of Firms. For your knowledge and convenience, we have listed below all the documents required for Partnership Firm Registration in India.
| Documents of all Partners |
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| Documents of Registered Firm Address |
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| Legal Drafts |
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Frequently Asked Questions About Partnership Firm Registration
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A partnership firm is formed when an association of people get together and decide to share the ownership of the business, its profits, its losses, its assets, its liabilities, and its capital contribution in a mutually agreed ratio, mentioned in the partnership agreement. The firm is constituted on the basis of a stamped and notarised Partnership agreement signed by all its partners. The firm formed as a result has an identity separate from its partners. As a result, it can be statutorily registered under the Partnership Act. The liability of each partner of a firm is unlimited, which means that if need arises, each partner shall have to pay off the liabilities of the business from their personal pockets. To learn more about the distinct features of a firm, check out our detailed comparison table here.
For Partnership Firm Registration, you require a minimum of two partners, a registered business address, a unique and valid name, and some amount of capital infused for the smooth functioning of the business. You shall also require a partnership deed signed by all partners in the presence of a notary and two other witnesses. The deed must be drafted on a stamp paper and stamped by the notary. Note that the firm cannot have more than 20 partners.
The partnership business is regulated under the Indian Partnership Act, 1932, which prescribes the possibility of two types of the firm, an unregistered firm, and a registered firm. An unregistered firm is formed by constituting a partnership agreement, signed by all partners in the presence of 2 witnesses and a notary. Such firms do not get registered with the Registrar of Firms. On the other hand, firms which get registered with the Registrar of Firms by submitting the prescribed application form along with the appropriate supporting documents, are known as a Registered Partnership Firm.
Though the Indian Partnership Act, 1932 makes partnership firm registration optional, section 69 of the act mentions certain disadvantages that an unregistered firm carries. A list of such disadvantages have been mentioned below.
- Unregistered Partnership Firms cannot claim a setoff.
- Unregistered Partnership Firms cannot recover more than Rs.100 from third parties.
- Partners of unregistered Partnership Firms cannot file legal suits in courts of law for resolution of disputes with third parties.
- Partners of unregistered Partnership Firms cannot file suit against another partner of the firm or the firm itself.
The application for partnership firm registration is filed with the Registrar of Firms, which is an authority under the State Government. Every state in India has a separate Office of ROF, the jurisdiction of which extends to the territorial boundaries of the concerned state. Applications for partnership firm registration must be filed to the ROF of the state in which it has been established. The Registrar usually takes 1-2 weeks to issue the Certificate of Partnership Firm Registration, from the date of submission of the application
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 Partnership Firm 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 formation of the firm
- The duration of the Firm
- Capital sharing ratio between partners
- Profit sharing ratio between partners
- Management and Administration of Partnership Firm
- The manner of resolving disputes
The stamp duty on partnership deeds varies from state to state and depends on the authorized capital of the firm. The notary of the deed is an essential requirement for partnership firm registration in India.
The applications for obtaining PAN and TAN are filed to the Income tax Department in Forms 49A and 49B respectively. Usually, it takes around 6-10 days from the date of filing of application, for the IT department to allot PAN and TAN to the firm.
Yes, a partnership firm can be converted easily into a Limited Liability Partnership or a Private Limited Company, the manner for which has been prescribed in the Partnership Act 1932.
A partnership firm is formed with the constitution of a Partnership deed signed by all its partners. As its registration is optional, a firm can be set up on the very day the deed is signed by the partners. The notarization of the agreement may be taken up at a later stage, if required. Similarly, the partnership firm registration with the ROF can also be undertaken when its need arises. This flexibility makes partnership firm registration easier, simpler, and quicker than setting up other forms of businesses like an LLP or a company.
The name of the partnership firm is decided before it is set up. Not only should it be unique and communicative of the brand and business activity of the firm, but must also be legally valid, according to the concerned laws. A proposed name is considered to be legally valid if it is neither identical to the name of an existing business, nor similar to an applied or registered trademark. The name must also be mentioned in the partnership deed signed by all partners of the firm. You can consult our team of legal experts for checking the availability and eligibility of the names proposed for your firm, without paying any consultation fee.
Unlike a Limited Company or LLP, there is no need to file the annual returns of a partnership firm.
Filing Income Tax Returns is mandatory for a partnership firm at the end of every financial year. The ITR must be filed on or before the prescribed due date. There is no mandatory requirement of tax audit for a partnership firm. However, if the turnover of the firm crosses Rs.2 crores, tax audit becomes mandatory.
Since there is no separation between the ownership and management in a partnership firm, the partners themselves are responsible for controlling the management and administration of the firm.
The existence of a partnership firm depends on the constitution of the partnership deed. Hence, when any partner who has signed the partnership deed dies or departs from the firm, the deed becomes null and void. The nullification of the deed results in the dissolution of the firm. If the remaining partners wish to continue their business together, they must first constitute a new deed, based on which a new firm shall be formed. Only after the formation of a new firm can they continue with their business together.
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