Partnership Firm Registration

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Start a 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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What is a Partnership Firm?

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. The existence of the Firm depends on the existence of the Partnership deed. In other words, If the deed ceases to exist for any reason, the Partnership Firm will immediately get dissolved.

Key Features of a Partnership Firm:

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Checklist & Documents

To establish a Partnership Firm, you must fulfill certain minimum requirements. These requirements are related to the number of partners, name of the firm and its registered office. Additionally, Partnership Firm Registration is not possible without the submission of proper and accurate documents. In the table below, we have enlisted both the minimum requirements for Partnership Firm formation and the documents required for Partnership Firm registration in India. Entrepreneurs must fulfill both these checklist requirements to establish, incorporate and operate a Partnership firm without hindrance.
Minimum Requirements List of Documents
  • At Least 2 Partners
  • Maximum 20 Partners
  • A Unique and Valid Name
  • A Registered Office in the State
  • Partnership Deed
    Documents of Partners
  1. Colour Photo
  2. PAN Card
  3. Aadhar Card
  4. ID Proofs
  5. Latest Address Proof
    Registered Premises
  1. Proof of Address
  2. NOC from the Property Owner
  3. Rent Agreement/Property Tax Receipt
    Legal Documents
  1. Partnership Deed
  1. We recommend you send the soft copies of documents. Also, fill out the questionnaire our startup advisors will share with you. We will verify the information and legal documents sent to us. Please contact us for further clarifications.
  2. The Address Proof Should not be more than Two months old.

How to Register a Partnership Firm in India? - Stepwise Procedure

The procedure of registration of partnership firm in India requires an application to be filed to the Registrar of Firms in the prescribed mode. Where the mode is online, applications can be accessed, filled out and submitted on the website of the Registrar of Firms (ROF). Where the mode is offline, the applicant needs to visit the ROF’s office in the state and file the application manually. Regardless of the mode of application, the applicant must navigate through the following steps to complete the Partnership Firm Registration process.

Step-1: Documentation

The Partnership Registration process in India starts with preparing the necessary documentation. Partnership Firm documents required include KYC documents of all partners, including their PAN, Adhar, and personal address proof. Additionally, the proof of the firm’s Registered Office address must also be submitted. Besides, if the office is rented, the applicant must submit the stamped and notarised Rent Agreement along with an NOC from the property owner.

Step-2: Select a Name of the Firm

The name of your Partnership Firm must be unique and communicative 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 MCA and IP India websites.

Step-3: Partnership Deed Registration

Partnership Deed is the legal basis of Partnership Firm formation in India. The deed is drafted on a Stamp Paper, and stamped by a public notary. All partners sign the document in the presence of the notary and two other witnesses. Payment of stamp duty and notary charges completes the process of Partnership deed Registration.

Step-4: PAN and TAN of the Firm

The application for allotment of PAN of the firm is made in Form 49A. PAN is used for Income Tax compliance. However, for TDS compliance, TAN is necessary. The application for TAN is filed in Form 49B. The Government assigns PAN and TAN to the firm after the approval of these applications.

Step-5: GST Registration for Partnership Firm

To fulfil compliances related to GST, like payment of taxes and filing of tax returns, GST Registration for Partnership Firm is necessary. For this, an appropriate application along with the required documents must be uploaded on the online GST portal. After the GST registration is granted, the Department allotts a unique GSTIN to the firm. This GSTIN can be used for all GST-related activities in the future. .

Step-6: Partnership Firm Registration with the ROF

To register a Partnership firm in India, you must first check the mode of application in your state. If your state allows online registration of Partnership Firm, you can visit the official website of ROF, and submit the application along with necessary documents and government fees. However, if the application mode is offline, you can visit the ROF’s office, get the application, and fill it manually for submission. After the application is processed, the ROF will register your firm and issue Partnership Firm Registration Certificate in its name.

Partnership Firm Benefits

Although Partnership Firm Registration is optional in India, Section 69 of the Partnership Act lists various adverse consequences that unregistered firms often face. These include the lack of distinct legal identity and full debt recovery from third parties. So, registering a Partnership Firm offers various practical advantages that unregistered firms do not. For a clearer understanding, we have listed and explained all the advantages of a Partnership Firm Registration below.

Set-off claims

Only registered Partnership Firms can claim setoffs against the debts of its creditors

Full debt recovery

Registered Partnership Firms can recover full amounts of debt.

Sue other partners

Partners of registered Firms can sue other partners of the Firm during a conflict.

Sue third parties

Registered Firms can sue any third party if it faces a conflict.

Can enter into contracts

Registered Firms can enter into contracts in their own names.

Trade & Acquire Property

Registered Firms can buy/sell properties in their own names.

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 partnership firm advantages and disadvantages 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. You might observe that a Firm stands out against a company on multiple fronts and are more suitable for certain kinds of businesses compared to others.

Partnership Firm

Private Limited Company

FAQs on Partnership Firm Registration

Partnership Firm Registration online is a quick, easy and cost-effective process. The form after registration gains a distinct legal identity and will be able to recover the full amount in case of debt recovery.
The partnership business is regulated under the Indian Partnership Act of 1932, which prescribes the possibility of two types of Partnership firms – an unregistered firm, and a registered firm. An unregistered firm is formed on the basis of partnership deed registration. On the other hand, registered firms are those additionally registered by the ROF of the state.
The law does not provide any specific format of a partnership deed. The deed can be drafted in any manner, and contains details that have been mutually agreed between partners. These details include:
  1. The main object and activities of the Firm
  2. The effective date of formation of the firm
  3. The duration of the Firm
  4. Capital sharing ratio between partners
  5. Profit sharing ratio between partners
  6. Management and Administration of Partnership Firm
  7.   The manner of resolving disputes
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.
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 annual tax audit for firms. However, if the turnover of the firm crosses Rs.1 crore (business turnover) or Rs.50 lakhs (professional services turnover) in a financial year, tax audit will be mandatory for that year only.
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 immediate dissolution of the firm.
The Partnership Registration fees differ for different states in India as the registration process is carried out by the State Government through the office of the Registrar of Firms.
The documents required for GST Registration for Partnership Firm include the following
  • registered partnership deed
  • proof of registered office address of the firm
  • cancelled cheque or bank statement of the firm’s bank account
  • PAN, ID proof, coloured photograph of the authorised partners
  • NOC from the owner of registered office property 
  • Rent Agreement or property documents of the registered office
Partnership Firm compliance to be fulfilled annually include ITR filing in the prescribed forms, and annual tax audit only if the firm’s turnover exceeds Rs.1 crore in case of business income or Rs.50 lacs in case of professional income.
Partnership Firm Registration online is a quick, easy and cost-effective process. The form after registration gains a distinct legal identity and will be able to recover the full amount in case of debt recovery.