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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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Overview of Partnership Firm Process in India

  • Professional Fee
    Starting at ₹4,999/- (Best Fee Guaranteed by Setindiabiz)
  • Government Fee
    The government fee for establishing a partnership firm in India consists of two components. First, there is the Stamp Duty on the partnership deed or agreement, and second, there is a fee charged by the Registrar of Firms. These costs vary from state to state.
  • Timeline
    The firm can be functional in 1-2 working days.
  • Eligibility
    1. Partners: 2 to 20. (Max ten in banking business)
    2. A Registered Address
    3. Unique Name
    4. Adequate Capital (No Min or Max Limit)
    5. Only Indian citizens are eligible to start a partnership firm.
    6. NRI/PIO can be partners on a Non-Repatriation basis.
  • Stepwise Process

    Steps to establish a partnership firm:

    1. Draft an agreement of partnership/Deed
    2. Pay the appropriate stamp duty on the deed.
    3. Notary attestation is recommended.
    4. Registration of the firm is optional (recommended)
    5. Apply for PAN and TAN.
    6. Apply for GST registration if needed.
    7. Obtain the MSME registration for the firm.
    8. Protect the brand or trademark.
    9. If planning for export and import, apply for IEC.
  • Documents Required

    Documents Required to Setup Partnership

    1. Passport size colour photo
    2. PAN Card (Mandatory)
    3. Identity Proof of Partners
    4. Proof of Residence of Partners
    5. Proof of Registered Office Address
    6. NOC from the owner of registered office premises
Get Started with Partnership Firm Establishment

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.

Checklist & Documents

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.

Minimum Requirements
1. At Least 2 Partners2. Maximum 20 Partners3. A Unique and Valid Name of the Firm4. A Registered Office in the State5. Partnership Deed
List of Documents
1. Documents of Partners
  • checkPAN Cards
  • checkAadhar Cards
  • checkColoured Photographs
  • checkID Proofs
  • checkAddress Proofs
2. Documents of Registered Office
  • checkProof of Address
  • checkNOC from the Property Owner
  • checkRent Agreement/Property Tax Receipt
3. Legal Documents
  • checkPartnership Deed

Note: 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.

Process of Partnership Registration with ROF in India

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.

step1

Documentation for Partnership Registration

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.

step2

Select a Name of the Firm

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.

step3

Partnership Deed Registration

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.

step4

PAN and TAN of the Partnership Firm

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

step5

GST Registration for Partnership Firm

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.

step5

Partnership Firm Registration with the ROF

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.

Benefits of Partnership Registration

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.

Partnership Firm vs Company

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.

Partnership Firm

Prosmerit1
  • checkEasy to Step Up
  • checkIncorporation is an Option
  • checkFlexible Management
  • checkLow Cost of Operations
  • checkShared Liabilities Between Partners
  • checkLimited Control by External Authorities
  • checkEasy to Dissolve
  • checkPrivacy in Firm’s Affairs
Consmerit1
  • meritUnrestricted Liability
  • meritLimited Investment Potential
  • meritLimited Period of Existence
  • meritNo Separate Management Authority

Private Limited Company

Prosmerit1
  • meritLimited Liability
  • meritHigh Investment Potential
  • meritPerpetual Existence
  • meritLesser Compliances
  • meritSeparate Management Structure
Consmerit1
  • meritExhaustive Incorporation Process
  • meritHigh Cost of Operations
  • meritHigh Number of Compliances
  • meritLong & Costly Winding Up Process
  • meritLack of Privacy
  • meritComplex Decision-Making Process
  • meritHigh Taxation
  • meritGreater Social Responsibility
  • meritSeveral External Regulations

FAQs

1.  What are the different types of Partnership Firms?

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2.  What are the essential details mentioned in a partnership deed?

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3.  Can I convert a Partnership Firm into a Private Limited Company or LLP?

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4.  Do I have to file the annual return of the Partnership Firm?

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5.  Is filing ITR returns and tax audits mandatory for Partnership firms?

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6.  Who makes the managerial decisions in the partnership firm?

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