Partnership Firm Registration

Start your Partnership Firm quickly 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.

The Stepwise Process to Start a Partnership Firm

Find out the stamp duty on Partnership Deed
Draft Partnership Deed and Get is Notarised
Apply for Pan Card of the Partnership Firm
Obtain TAN Number from the Income Tax Dept
Open Bank Account
Go for GST Registration & MSME

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Important Points of Partnership Form of Business

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

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 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

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.

Packages for Partnership Firm Registration

5,999/-
2 - 7 DAYS

Partnership Deed Drafting
Partnership Deed Notarization
PAN Card & TAN Number
GST Registration

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9,999/-
Best Seller

Basic Pack +
MSME Registration
GST Return for Six Month
TDS Return for Six Month

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24,999/-
Gold Pack

Silver Pack +
Firm Registration with ROF
Training & Customisation of A/c Software
Cloud A/c and GST Filing Software

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Disclaimer: The Registration Fee charged by the ROF, Stamp Duty on the Agreement which varies for each state or union territory is not included in above pack and shall be charged separately on a case to case basis. you may request a customised quote from us.

Items	Basic	Silver	Gold
Capital upto Rs. 10,000	✔	✔	✔
Partnership Deed Drafting	✔	✔	✔
Partnership Deed Notarization	✔	✔	✔
PAN Card & TAN Number	✔	✔	✔
GST Registration	✔	✔	✔
MSME Registration	✕	✔	✔
GST Return for Six Month	✕	✔	✔
TDS Return for Six Month	✕	✔	✔
Firm Registration with ROF	✕	✕	✔
Training & Customisation of A/c Software	✕	✕	✔
Cloud A/c and GST Filing Software	✕	✕	✔
	Order Now	Order Now	Order Now

Documents Required For Partnership Registration

Basic Documents to Start a Partnership

Notarised Partnership Agreement
Proof of Registered Address
It should not be older than 2 months
NOC from the Owner of Premises

Documents of all partners of the Firm

Two Photograph
Copy of PAN Card
Valid Identity Proof
Latest Address Proof

Documentation - Day - 1

The process starts with documentation of the partners and the place of business where from where the firm shall be operating its business in India. Ensure that the documents are updated and correct. The list of documents required is provided above for your reference. We shall also require information in the Questionnaire For Partnership Formation.
Selection of Name - Day - 1

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. The selection of a proper name should be starting point, we search the proposed name of the firm in the trademark register to avoid any infringement on someone else's trademark. To learn more on trademark click here
Drafting of Partnership Deed - Day - 1

The Partnership Agreement or the Deed is the main document of the firm and is also considered as the constitution of the firm which determines the mutual rights of the partners among themselves. This document also specifies the capital and profit sharing ratio and how the firm shall be operated by the partners.
Payment of Stamp Duty for the Partnership Deed - Day - 1

After the draft partnership agreement is approved and adopted by the parties the stamp duty on the partnership deed has to be paid which varies from state to state and on the capital of the partnership agreement. In none of our packages we have included the value of stamp duty and it is required to be paid by clients on actual basis.
Signing of Partnership & Notary of Deed - Day - 2

Finally the partnership deed is signed by the partners in the presence of two witnesses and thereafter the deed should be notarised by presenting the same before a notary public.
PAN Number Allotment - Day - 2-7

The partnership firm needs to make an application in the prescribed form before the income tax department for the allotment of PAN, The acknowledgement of pan application for the partnership firm is received within the same day, however, the pan is allotted within a week time.
TAN Number Allotment - Day - 2-7

TAN number is a permanent number allotted to business for complying with the provisions of withholding tax. You are required to deduct TDS while making payments, hence the next step is to obtain TAN number, which is mandatory to submit TDS Returns.

Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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

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.

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.

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.

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)

Compare Forms of Business

Check advantages and disadvantages of Common Business Entity Types

FEATURES
Private Limited Company
One Person Company
LLP
Partnership Firm
Proprietorship Firm

+
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

Registration Cost
6,899/-
6,299/-
6,699/-
5,999/-
2,499/-

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