Partnership Firm Registration

A Partnership Firm in India is a business structure governed by the Indian Partnership Act, 1932, where two or more individuals agree to share profits and losses. It is not a separate legal entity, meaning partners have unlimited liability, making personal assets liable for business debts. A partnership requires a minimum of two partners, with a maximum of 20. A partnership deed outlines roles, profit-sharing, and terms. Ideal for small businesses, it offers ease of formation, low compliance, and shared decision-making. However, disputes or a partner’s exit can dissolve the firm unless specified otherwise.

Benefits:

A Partnership Firm in India offers several advantages. It is easy to form with minimal legal formalities and low setup costs. Shared responsibility allows partners to pool resources, skills, and expertise, enhancing decision-making and workload distribution. Flexibility in management enables quick adaptations without rigid structures. Profit-sharing aligns partners’ interests, fostering collaboration. No minimum capital is required, making it cost-effective for small businesses. Partnerships also allow tax simplicity, as profits are taxed at the individual partner level. However, partners bear unlimited liability, and the firm’s continuity may be affected by disputes or a partner’s exit.

Documents required for a Partnership Firm:

To register a Partnership Firm in India under the Indian Partnership Act, 1932, the following documents are required:

  • Partnership Deed: A written agreement detailing partner roles, profit-sharing ratio, capital contribution, and terms (notarised and on stamp paper).

  • Identity Proof of Partners: PAN card and Aadhaar card for all partners; passport for foreign nationals (apostilled/notarised if applicable).

  • Address Proof of Partners: Recent utility bill (electricity, water, or gas), bank statement, or driving license (not older than two months).

  • Proof of Business Address: Rental agreement, sale deed, or No Objection Certificate (NOC) from the landlord, plus a recent utility bill (not older than two months).

  • PAN Card Application: For the partnership firm, obtained post-registration.

  • GST Registration Documents: If applicable, based on turnover or business nature (includes the firm’s PAN, address proof, and partner details).

  • Affidavit: Declaring the firm’s details and partner consent (if required by the Registrar of Firms)

Register your Partnership Firm@Just 2,499/- (Exclusive Govt. Fee)