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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

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

What is Partnership Firm?

The Indian Partnership Act of 1932 provides the legal requirements for founding a partnership in the country. This Act specifically outlines the rights and responsibilities of the partners concerning one another and other legal relationships that follow from forming a partnership between partners and third parties. 

As a result, the Act defines a partner's and a partnership firm's roles in legal and business agreements that result from and are related to a partnership firm's activities concerning 3rd parties. Compared to earlier essays, this one will go into greater detail about the various facets of managing a partnership in India.

If you are looking for the best platform to get partnership firm registration in Delhi, then TaxClue is one of the best platforms. The fastest-growing business services platform in India, TaxClue, is devoted to assisting entrepreneurs in starting and expanding their businesses quickly and affordably. 

Services Covered

Partnership Deed



Udhyam Certificate

Benefits of Partnership Firm

A partnership firm can be incorporated with the minimum requirement of two individuals, and the Partnership Act of 1932 governs partnership firms. A Partnership Deed may be used to incorporate it. The Partnership firm has numerous advantages. Some of the points of interest are listed below:

Operational Versatility

One advantage of the partnership firm is that it is somewhat flexible because you do not need to complete many legal formalities until the partnership is established from scratch. The operation of a partnership would be relatively flexible because the partner might expand or contract their firm without any legal stipulation. It is simple for the proprietors of the partner firm to make decisions because they are partners. Compared to other corporate entities, making decisions in a partnership is simple.

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

A yearly return must not be filed with the Ministry of Corporate Affairs. If we compare a partnership firm to a limited liability partnership, the partnership firm does not require us to submit an annual report to the ministry of corporate affairs. However, the limited liability partnership requires us to comply with numerous regulations.

Sharing of Risk

One of the essential advantages of a partnership firm is that the risk is dispersed equitably among all members. A partnership typically has many participants, which helps to spread out the risk.

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.

More Resources

The partnership firm has more resources for business operations than the sole proprietorship because it has more members. As a partnership firm has numerous partners, they can pool their expertise and resources to grow the partnership company.

Higher Capital Contribution

Due to the increased number of participants in a partnership firm, a higher capital contribution can be raised. Because numerous partners are willing to donate, it is simple to raise money. You will benefit from it in many ways because many partners can each obtain a different loan from the bank.

Higher Capital Contribution

Due to the increased number of participants in a partnership firm, a higher capital contribution can be raised. Because numerous partners are willing to donate, it is simple to raise money. You will benefit from it in many ways because many partners can each obtain a different loan from the bank.

No statutory Audit

There is no necessity for a Statutory Audit, which is one of the key benefits of a partnership firm. Therefore, an audit of a Partnership Firm's books of accounts is not required. You might need to double-check your memory if the Income Tax Act has any requirements. The Department of Income Tax may occasionally demand it.

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 Public Limited Company Registration Nidhi Company Registration
Act Indian Partnership Act, 1932 Limited Liability Partnership Act, 2008 Companies Act, 2013 Companies Act, 2013 No specified Act No specified Act Companies Act, 2013 Companies Act, 2013
Registration Requirement Optional Mandatory Mandatory Mandatory No No Mandatory Mandatory
Number of members 2 – 50 2 – Unlimited 2 – 200 Only 1 Only 1 Only 1 Unlimited Unlimited
Separate Legal Entity No Yes Yes Yes No No Yes Yes
Liability Protection Unlimited Limited Limited Limited Unlimited Unlimited Limited Limited
Statutory Audit Not mandatory Dependent Mandatory Mandatory Not mandatory Not mandatory Mandatory Mandatory
Ownership Transferability No Yes Restricted No No No Unrestricted Unrestricted
Uninterrupted Existence No Yes Yes Yes No No Yes Yes
Foreign Participation Not Allowed Allowed Allowed Not Allowed Not Allowed Not Allowed Allowed Allowed
Tax Rates High High Moderate Moderate Low Low Moderate Moderate
Statutory Compliances Less Moderate High Moderate Less Less High High
The formation and Registration of a Partnership Firm in India

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