Partnership Firm
Registration Online
in India
Start your joint business the right way — with a professionally drafted Partnership Deed, Registrar of Firms registration, and all supporting compliances handled by our expert CA team. 100% online.
Trusted by partnership firms & businesses across India
How TaxClue Registers Your Partnership Firm
From deed drafting to full legal registration — TaxClue manages every step online, typically completed in 3–7 working days. No Registrar visits needed; we coordinate everything on your behalf.
Free Consultation Call
Our CA understands your business, number of partners, profit-sharing ratios, and goals. We advise on whether to register with the Registrar of Firms, capital contribution structure, and state-specific stamp duty requirements for the deed.
Day 1Document Collection
We share a personalised checklist for all partners — PAN, Aadhaar, address proofs, photographs, and the firm's proposed business address documents. No complex MCA documents needed.
Day 1Partnership Deed Drafting
TaxClue's legal team drafts a comprehensive, court-admissible Partnership Deed covering: firm name, business address, partner details, capital contributions, profit/loss sharing ratio, duties, dispute resolution, and dissolution clauses.
Day 1–2Stamp Duty & Partner Signing
The deed must be printed on stamp paper of the prescribed value (varies by state — typically ₹500 to ₹2,000). TaxClue advises on the correct stamp value for your state. All partners sign the deed in the presence of witnesses.
Day 2–3Registrar of Firms Filing
TaxClue files Form-1 (Application for Registration) along with the signed Partnership Deed, affidavit, and all partner identity documents with the Registrar of Firms in your state. We track the application and follow up on any queries.
Day 3–5Certificate of Registration
The Registrar issues the Certificate of Registration — formally recognising your firm. Your firm's name is entered in the Register of Firms. This certificate gives your firm the right to sue third parties and enforce contracts.
Day 4–7PAN, GST & Bank Account
TaxClue applies for the firm's PAN and TAN from the Income Tax Department, assists with GST registration (mandatory if turnover exceeds ₹20L / ₹40L), and guides you in opening a current bank account in the firm's name.
Day 3–6Tax & Accounting Setup
We set up your bookkeeping structure, advise on ITR-5 filing, profit allocation among partners, GST return schedule, and TDS obligations — so your firm is fully compliant and penalty-free from the very first day of operations.
✅ Ready to Operate!What is a Partnership Firm?
A Partnership Firm is a business structure formed by two or more individuals (called partners) who agree to carry on a business together and share its profits and losses. It is governed by the Indian Partnership Act, 1932 and is one of the oldest and most common forms of business organisation in India.
The relationship between partners — their rights, duties, capital contributions, profit-sharing ratios, and dispute resolution mechanism — is defined in a legal document called the Partnership Deed. A well-drafted deed is the foundation of every successful partnership.
Registered vs Unregistered Partnership
⚠️ Unregistered Firm
- •No registration with Registrar of Firms
- •Partnership Deed still valid between partners
- •Cannot sue third parties in its own name
- •Cannot claim set-off in court proceedings
- •Harder to get business loans & bank accounts
- •Reduced legal protection and credibility
✅ Registered Firm (Recommended)
- ✓Full legal recognition under Indian Partnership Act
- ✓Can sue and be sued in its own firm name
- ✓Can claim set-off and counter-claims in court
- ✓Easier bank account opening & loan eligibility
- ✓Higher credibility with clients & suppliers
- ✓Partners' rights enforceable against each other
TaxClue always recommends a Registered Partnership Firm
While registration is technically optional under the Indian Partnership Act, an unregistered firm has significant legal disadvantages. The cost of registration is minimal compared to the protection it provides. TaxClue handles the complete registration process — deed drafting, stamp duty, Registrar of Firms filing, and certificate — in 3–7 working days.
The Partnership Deed — Your Firm's Foundation
The Partnership Deed is the most critical document for any partnership firm. It is a legally binding agreement between all partners that defines every aspect of the business relationship. A poorly drafted deed leads to disputes, litigation, and financial losses.
What TaxClue includes in your Partnership Deed
Our CA/legal team drafts a comprehensive, court-admissible deed that protects all partners:
💡 TaxClue's deed templates are vetted by practising advocates and updated regularly for the latest judicial interpretations under the Indian Partnership Act, 1932.
Who is a Partnership Firm Ideal For?
Family-Owned Businesses
Joint ventures within families — retail shops, manufacturing units, and ancestral trading firms.
Professional Firms
CA firms, law offices, architectural practices, and consulting groups with 2–20 partners.
Traders & Wholesalers
Two or more people starting a trading, distribution, or wholesale business together with shared capital.
Small Manufacturers
Two-partner manufacturing units, workshops, and production firms starting at small scale.
Restaurant & Food Businesses
Joint restaurant ventures, cloud kitchens, and catering businesses started by two or more founders.
Service & Consulting Businesses
Marketing agencies, design studios, HR consultancies, and other multi-partner service businesses.
Advantages & Disadvantages of a Partnership Firm
✅ Advantages
- ⚡Simple to Start — Far fewer formalities than Pvt. Ltd. or LLP
- 👥Shared Risk & Capital — Multiple partners pool resources and expertise
- 💰No Minimum Capital — Partners contribute whatever is agreed in the deed
- 📋Minimal Compliance — No ROC filings, no AGM, no board resolutions
- 🔄Flexible Operations — Partners can modify deed by mutual agreement
- 💸Tax Efficiency — Firm taxed at flat 30%; partner salaries & interest deductible
⚠️ Limitations
- ⚠️Unlimited Liability — All partners personally liable for firm's debts
- 🏢No Separate Legal Entity — Firm and partners are legally the same
- 📉Limited Funding — Cannot issue equity; investor funding is very difficult
- ⚰️Dissolution Risk — Firm may dissolve on partner's death, insolvency, or exit
- 😤Partner Disputes — No clear deed means conflicts can destroy the business
- ⭐Lower Credibility — Banks and large clients prefer LLP or Pvt. Ltd.
Want limited liability with a partner structure?
Consider an LLP (Limited Liability Partnership) — it offers the same multi-partner flexibility as a partnership firm but with limited liability protection for all partners. TaxClue advises on the right choice for your business and handles LLP registration just as efficiently. Learn about LLP →
Step-by-Step Registration Process
Here is the complete legal process for registering a Partnership Firm in India — managed end-to-end by TaxClue:
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1
Deed Preparation & Partner Consultation
TaxClue collects all partner information — names, addresses, capital contributions, profit-sharing ratios, roles, and the nature of the business. Our legal team prepares the draft deed and shares it with all partners for review and approval before finalisation.
Day 1–2 -
2
Stamp Duty Payment
The Partnership Deed must be executed on non-judicial stamp paper of the prescribed value under your state's Stamp Act. Stamp duty varies from ₹500 to ₹2,000 depending on the state and capital contributed. TaxClue advises on the exact amount for your state and capital structure.
State Stamp Office -
3
All Partners Sign the Deed
The finalised deed is signed by all partners in the presence of witnesses (two witnesses required). All signatures must be made on each page of the deed. TaxClue guides you on the correct signing procedure to ensure the deed is legally valid and admissible in court.
Partners & Witnesses -
4
Application to Registrar of Firms (Form-1)
TaxClue files Form-1 — the application for registration of the partnership firm — along with the signed deed, affidavit by a partner confirming the correctness of details, identity proofs of all partners, and the firm's address proof with the Registrar of Firms in your state/district.
Registrar of Firms -
5
Certificate of Registration Issued ✅
Once verified, the Registrar enters the firm's details in the Register of Firms and issues the Certificate of Registration. Your firm is now fully legally registered. The certificate serves as primary proof of your partnership firm's legal existence.
Day 4–7 -
6
Firm PAN & TAN from Income Tax Department
TaxClue applies for the partnership firm's PAN (Permanent Account Number) and TAN (Tax Deduction Account Number) — required for filing ITR-5, opening a bank account, GST registration, and all financial transactions.
Income Tax Portal -
7
GST Registration (If Required)
If the firm's expected turnover exceeds ₹20 lakh (services) or ₹40 lakh (goods), or if it sells on e-commerce platforms or does inter-state business, TaxClue applies for GST registration using the firm's PAN and Certificate of Registration.
GST Portal -
8
Current Bank Account & Operations Setup
Using the Certificate of Registration and firm PAN, TaxClue guides you through opening a current account in the firm's name. We also advise on Udyam/MSME registration, Shop & Establishment License, and any sector-specific licenses (FSSAI, IEC, etc.) your business may require.
Bank & Licensing
What You Get with TaxClue Registration
Professionally Drafted Partnership Deed
Comprehensive, legally sound deed covering all 12+ essential clauses — partner-reviewed before finalisation.
Certificate of Registration
Issued by the Registrar of Firms — your firm's official legal recognition document.
Firm PAN & TAN
Applied immediately after registration — required for banking, GST, and ITR-5 filing.
GST Registration Assistance
Complete GST application and GSTIN procurement if your firm's turnover warrants it.
Digital Document Set
All documents delivered digitally — deed, certificate, PAN, TAN — via WhatsApp or email.
Free Tax & Accounting Advisory
Bonus: ITR-5 schedule, partner remuneration structure, GST return setup, and bookkeeping guide — free.
Documents Needed for Partnership Registration
Required for all partners and the firm's registered office. TaxClue shares a personalised checklist after your free consultation.
For All Partners
PAN Card
Mandatory for all partners — used for firm PAN and bank account.
Aadhaar Card
Identity proof for all partners, linked to active mobile number.
Address Proof
Bank statement or utility bill (max 2 months old) for each partner.
Passport-size Photo
Recent colour photograph of each partner.
Email & Mobile
Active email and mobile number of each partner for registrations.
Partner Details
Capital contribution amount and profit-sharing ratio agreed by all partners.
For Registered Office of the Firm
Rent Agreement
If the firm operates from rented premises — registered rent agreement.
NOC from Owner
No Objection Certificate from the property owner for firm registration.
Utility Bill
Electricity or gas bill of the office/business premises (max 2 months old).
Partnership Firm vs LLP vs Pvt. Ltd. vs Proprietorship
Choosing the right multi-partner structure depends on your liability tolerance, compliance appetite, and growth plans.
| Feature | Partnership ✅ | LLP | Pvt. Ltd. | Proprietorship |
|---|---|---|---|---|
| Min. Partners / Members | 2 Partners | 2 Partners | 2 Directors | 1 Owner |
| Registration Body | Registrar of Firms | MCA (ROC) | MCA (ROC) | GST / State |
| Time to Start | 3–7 Days | 10–15 Days | 7–10 Days | 2–5 Days |
| Limited Liability | ✗ No | ✓ Yes | ✓ Yes | ✗ No |
| Separate Legal Entity | ✗ No | ✓ Yes | ✓ Yes | ✗ No |
| Annual Compliance | Minimal | Low | Moderate | Minimal |
| Statutory Audit | Above ₹1Cr sales | Above ₹40L | Always | Above ₹1Cr |
| Equity Fundraising | ✗ No | ✗ Limited | ✓ Yes | ✗ No |
| Partnership Deed | ✓ Core document | LLP Agreement | MOA & AOA | Not required |
| Best For | Traders, CA firms, family biz | Professionals | Startups, SMEs | Solo sellers |
Annual Compliance Requirements for Partnership Firms
One of the biggest advantages of a partnership firm — compliance is much simpler than a Pvt. Ltd. or LLP. No ROC filings, no AGM, no board resolutions. Here's what you need to stay compliant:
TaxClue Annual Compliance for Partnership Firms
Our affordable compliance package covers ITR-5 filing, partner ITR-3s, GST monthly/quarterly returns, TDS, bookkeeping, and tax advisory — all managed by a dedicated CA. Get a custom quote →
Why Choose TaxClue for Partnership Firm Registration?
Expert Deed Drafting
Our CA/legal team drafts comprehensive, dispute-proof deeds covering all 12+ essential clauses — partner-reviewed before finalisation.
All States Covered
We know the Registrar of Firms process, stamp duty requirements, and specific formats for all 28 states and UTs across India.
3–7 Day Setup
Application filed within 1 working day of receiving complete documents. Certificate typically issued within 3–5 working days of filing.
Transparent Fixed Pricing
All-inclusive quote covering deed drafting, stamp duty advisory, Registrar filing, and PAN/GST — no surprise add-ons.
100% Online Process
Documents collected and all certificates delivered digitally. Partners do not need to visit any government office.
LLP / Pvt. Ltd. Conversion Support
When your firm is ready to upgrade, TaxClue manages the full conversion to LLP or Private Limited Company seamlessly.
Frequently Asked Questions
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Is it mandatory to register a Partnership Firm in India?+No, registration is not mandatory under the Indian Partnership Act, 1932. An unregistered partnership firm is legally valid. However, an unregistered firm cannot file a lawsuit to enforce its rights against third parties, cannot claim set-off in court proceedings, and has limited credibility with banks and clients. TaxClue strongly recommends registration to ensure full legal protection. The cost of registration is minimal compared to the legal protection it provides.
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What is a Partnership Deed and why is it important?+A Partnership Deed is the foundational legal document that defines the entire relationship between partners — their capital contributions, profit-sharing ratios, roles, decision-making authority, dispute resolution procedures, and dissolution terms. Without a well-drafted deed, partner disputes can quickly destroy the business. A deed drafted by TaxClue's legal team covers all 12+ essential clauses and is court-admissible. TaxClue shares the draft with all partners for review before finalisation — ensuring everyone is aligned before signing.
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How many partners can a Partnership Firm have?+A Partnership Firm requires a minimum of 2 partners. The maximum is 50 partners (as per the Companies Act, 2013 — reduced from 20 under the old law). For professional firms like CA or law practices, the cap does not apply and is governed by professional body regulations. TaxClue has experience drafting deeds for partnerships with 2 to 30+ partners, including complex capital and profit structures.
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How is a Partnership Firm taxed in India?+
A registered partnership firm is taxed at a flat 30% + applicable surcharge and cess on its net income. Key features of partnership taxation:
- Partner remuneration (salary, bonus, commission) is deductible from firm income — within limits u/s 40(b)
- Interest paid to partners (up to 12% per annum) is deductible from firm income
- Partners' share of profit is exempt in their individual hands (already taxed at firm level)
- The firm files ITR-5 annually; partners file ITR-3 individually
- Advance tax is paid by the firm quarterly
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What happens to the firm if a partner dies, retires, or becomes insolvent?+By default under the Indian Partnership Act, a partnership firm dissolves automatically on the death, retirement, or insolvency of any partner — unless the Partnership Deed explicitly states otherwise. This is a critical reason why a well-drafted deed is essential. TaxClue's deed includes a continuation clause that allows the remaining partners to carry on the business after reconstituting the firm, protecting business continuity without dissolution.
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What is the difference between a Partnership Firm and an LLP?+The fundamental difference is liability protection. In a partnership firm, all partners have unlimited personal liability — their personal assets can be used to repay firm debts. In an LLP (Limited Liability Partnership), each partner's liability is limited to their capital contribution. LLPs are also registered with MCA, have a separate legal entity, and have higher regulatory credibility. However, LLPs have slightly higher setup costs and annual ROC filing requirements. TaxClue advises on the right choice for your specific situation.
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Can a Partnership Firm be converted to LLP or Pvt. Ltd.?+Yes. A registered partnership firm can be converted into an LLP under the LLP Act, 2008 (Section 55) or into a Private Limited Company under the Companies Act, 2013 (Section 366). The conversion transfers all assets, liabilities, and business from the firm to the new entity. All existing bank accounts, GST registrations, and licenses need to be updated to the new entity's name. TaxClue provides full conversion assistance, ensuring business continuity and compliance throughout the transition.
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What are the stamp duty charges for a Partnership Deed?+Stamp duty on a Partnership Deed varies by state and by the capital contributed by partners. As a general guide: Delhi — ₹500 to ₹5,000 (based on capital); Maharashtra — based on capital slab (₹500 to several thousand); Karnataka — ₹1,000 to ₹5,000; Rajasthan — ₹1,000 to ₹3,000. TaxClue advises on the exact stamp duty for your state and capital structure during the free consultation, so there are no surprises.
What Our Clients Say
From family businesses to CA firms — 5,000+ partnerships across India trust TaxClue for registration, deed drafting, and compliance.
My brother and I started a wholesale textile firm and TaxClue drafted our Partnership Deed perfectly. They included a continuation clause so the firm wouldn't dissolve if anything happened to either of us — something we hadn't even thought about. The deed was ready in 2 days and the Certificate of Registration came in 5 days. Outstanding service.
We are a 4-partner CA firm and needed a professionally drafted Partnership Deed that clearly defined each partner's responsibilities, remuneration, and exit clauses. TaxClue understood our specific needs as a professional firm and delivered exactly what we needed. The deed review process was smooth and thorough. Highly recommend.
I had a bad experience earlier with a partner who disputed the profit-sharing arrangement — all because our original deed was poorly drafted. When I started my new partnership, TaxClue drafted a comprehensive deed with clear profit ratios, dispute resolution clauses, and exit provisions. No ambiguity whatsoever. I sleep better now!
TaxClue registered our restaurant partnership firm including GST, FSSAI, Shop License, and PAN — all simultaneously. What would have taken us weeks of running around different government portals was done in under 7 days. They also advised us on setting up separate bank accounts for each partner, which was genuinely helpful tax advice we hadn't expected.
We started as a partnership firm and TaxClue handled our ITR-5 filings and GST returns for 2 years. When we decided to upgrade to an LLP for limited liability, they managed the complete conversion without any disruption to our business. One team, consistent service across the entire journey. Couldn't ask for more.
Our family-owned agricultural trading firm had been running unregistered for years. When a major supplier required proof of our firm's legal registration, TaxClue got us registered with the Registrar of Firms in 5 days and updated our bank account to reflect the new certificate. Fast, professional, and zero hassle.
Your Partnership Firm is 3–7 Days Away
Join 5,000+ Indian businesses who registered with TaxClue. Expert deed drafting, Registrar of Firms filing, PAN, GST — all in one seamless service.
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