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Rs. 4,999.00 Rs. 7,999.00

Partnership Firm Registration

It is a partnership when two or more person come together for profit from a business. This structure is best suitable for small and medium scale businesses with an additional benefit of lower compliances.
Company Details
Act Indian Partnership Act, 1932
Registration Requirement Optional
Number of members 2 – 50
Separate Legal Entity No
Liability Protection Unlimited
Statutory Audit Not mandatory
Ownership Transferability No
Uninterrupted Existence No
Foreign Participation Not Allowed
Tax Rates High
Statutory Compliances Less

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Tags: Partnership Firm Registration partnership, firm, registration, starting, business, india

What is Partnership Firm?

Partnership firm represents a business entity that is formed with a purpose of making a profit from the business. Two or more parties come together with a formal agreement (known as Partnership Deed) to own and manage the business. The risk and responsibilities are shared amongst the partners that shred the burden of an individual partner. Also, when two comes together, more capital and expertise are combined that helps to reach the business goal(s) easily.

Partnership Act, 1932 defines the structure of a Partnership firm by providing all the necessary provisions to run the same. The Act validates both registered and unregistered partnership firms in India. However, an unregistered partnership has few shortcomings that attract partners towards Partnership Firm Registration. But, one can overcome it by registration firm anytime after it is formed.

Services Covered

Partnership Deed

PAN & TAN

GST

Udhyam Certificate

Benefits of Partnership Firm

Shared Responsibilities

The word Partnership itself describes individuals coming together for some common business object. The partners share the responsibility to work and manage the business together. Responsibilities for a particular field or task can be assigned to one or more partners by indicating the same in a Partnership Deed.

Operating Flexibility

A Partnership firm is operated on the basis of the Partnership deed executed by the partners, mutually. The partners can decide how to operate the business with their mutual consent. Also, the Partnership Deed can be changed according to the requirement even after partnership deed registration is completed. There are no limitations or restrictions on the partners in regards to running the business, as long as it is covered under the signed agreement.

Pre-defined Object or Period

At the time of registering a Partnership firm, the deed enumerates the pre-defined business objectives and activities, which is the main aim to commence business. A partnership can be formed within a specified period or to complete a specific project or object. Once the same is completed, the partnership will automatically stand dissolved.

Various Financial Returns to the Partners

Partners involved with the firm get various types of returns for their capital as well as their individual efforts. The working partner also receives remuneration in addition to the interest on capital and share of profit, as may be agreed by the partners. Also, the share of profit from partnership firm is exempt for the partner receiving it.

No Annual Returns

There is no need to submit an annual return to the Ministry of Corporate Affairs. If we compare partnership firm with Limited Liability Partnership, then we do not have to file an annual return in the Partnership firm to the ministry of Corporate Affairs, while we have to fulfill many compliances in the Limited Liability Partnership.

Sharing of Risk

One of the most significant advantages of the partnership firm is that the risk gets equalized in all the partners. As there are multiple partners in a partnership, so the risk gets balanced.

Easy to Dissolve

A partnership business can be dissolved after making the agreement between partners regarding the dissolution of the business. The dissolution of the partnership does not require any complex legal proceedings.

No statutory Audit

One of the significant advantages of a Partnership firm is, there is no requirement of a Statuary Audit. Therefore a Partnership Firm is not required to get its books of account audited. You may have to check your book of mind if there is any requirement of Income Tax Act. Sometimes it is required by the Income Tax Department.

Documents required for formation of a Partnership Firm

Minimum 2 Partners

Name of Firm

Business Name

PAN Card

A self-attested copy of PAN Card of all partners

Partners Address Proof

Self- attested copy of Aadhar Card and Voter ID/ Passport/ Driving License of all partners

Business Address Proof

Utility Bill (Electricity Bill) of the place of business

Rent Agreement

Rent Agreement and NOC from the owner of the place of business, if rented

Process Flow

Establish Partnership in 3 Easy Steps

1. Answer Quick Questions

  • Pick a Package that best fits your requirements
  • Fill in our questionnaire that takes less than 10 minutes
  • Provide basic details & documents required for registration
  • Make payment through secured payment gateways

2. Experts are Here to Help

  • Assigned Relationship Manager
  • Drafting a Partnership Deed
  • Payment of Stamp Duty on Deed
  • Notary of Partnership Deed
  • Application for PAN and TAN

3. Establishing a Partnership Firm

  • All it takes is 12 working days*

Process to establish Partnership Firm

Day 1

  • Discussion and collection of basic Information
  • Providing Required Documents for Partnership firm registration

Day 2 - 4

  • Drafting a Partnership Deed
  • Review and confirmation from Partners

Day 5 - 7

  • Payment of Stamp Duty on the agreement
  • Partnership Deed Notarisation
  • Application for allotment of PAN and TAN

Day 8 onwards

  • Partnership Deed registration, if subscribed
  • Certificate of Registration from RoF*

Compare different business structures to choose the right entity type
Partnership Firm Registration LLP Registration Private Limited Company One Person Company Registration Sole Proprietorship Firm Registration Section 8 Company
Act Indian Partnership Act, 1932 Limited Liability Partnership Act, 2008 Companies Act, 2013 Companies Act, 2013 No specified Act No specified Act
Registration Requirement Optional Mandatory Mandatory Mandatory No No
Number of members 2 – 50 2 – Unlimited 2 – 200 Only 1 Only 1 Only 1
Separate Legal Entity No Yes Yes Yes No No
Liability Protection Unlimited Limited Limited Limited Unlimited Unlimited
Statutory Audit Not mandatory Dependent Mandatory Mandatory Not mandatory Not mandatory
Ownership Transferability No Yes Restricted No No No
Uninterrupted Existence No Yes Yes Yes No No
Foreign Participation Not Allowed Allowed Allowed Not Allowed Not Allowed Not Allowed
Tax Rates High High Moderate Moderate Low Low
Statutory Compliances Less Moderate High Moderate Less Less
The formation and Registration of a Partnership Firm in India