Partnership Firm

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 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.

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Benefits of Partnership Firm Registration

Legal Entity Status:

Legal Entity Status: Registration grants the firm a recognized legal identity, distinguishing it from an unregistered partnership.

Credibility:

Registered firms are often viewed as more credible and reliable by clients, suppliers, and financial institutions.

Easy Access to Credit:

Banks and financial institutions are more likely to offer loans and credit facilities to registered firms.

Ability to Sue and Be Sued:

Registered firms can initiate legal action to enforce their rights and are also subject to being sued, ensuring legal accountability.

Compliance and Benefits

Avoidance of Penalties:

Operating as a registered entity helps avoid penalties associated with non-compliance with business regulations.

Tax Benefits:

Registered firms can avail themselves of various tax deductions and exemptions under the Income Tax Act.

Transferability of Ownership:

Ownership can be easily transferred to new partners without dissolving the firm.

Minimum Requirements

  • At Least 2 Partners
  • Maximum 20 Partners
  • A Unique and Valid Name
  • A Registered Office in the State
  • Partnership Deed

Documents Required for Partnership Firm Registration

  • Application Form 1.
  • Copy of Partnership Deed
  • Registered Documents of the Property
  • Valid ID Proof
  • Rent Agreement

How to Register a Partnership Firm in India?

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

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-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.

FAQs on Partnership Firm Registration

A partnership firm is a business structure where two or more individuals come together to manage and operate a business with a shared goal of profit.

Any two or more persons can form a partnership firm, provided they are competent to contract.

Essential requirements include a partnership deed, which outlines the terms of partnership, contributions, profit-sharing ratios, and other relevant details.

Partnership firms can be registered by filing an application with the Registrar of Firms along with prescribed fees and necessary documents.

Documents typically include the partnership deed, address proof of the place of business, identity proof of partners, and a registration application form.

Benefits include legal recognition, easier access to credit, clarity in management and operations, and a formal framework for dispute resolution.