Partnership Firm Registration Online in India
Team up with others to start a business where you share the responsibilities and profits equally.
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Meghana Woonna2024-03-06Expert advice, friendly staff, and excellent client serviceMOHD RAFIQ KHAN2024-03-01Made the GST filing process understandable for a layman like meRAMARAO IMMIDI M V R S2024-03-01Partnership formation advice was invaluable, truly professionalPRABHAKARA RAO2024-03-01Their guidance on trade license was clear and helpfulAvinash -ADMIN2024-03-01Very good servicesDSK Sai2024-03-01They are the best at what they do, highly recomendRam katla2024-03-01We registered LLP here, it was a good experienceVinay chowdary Kurra2024-03-01Flexible auditingkandukuri avinash2024-03-01Impressed with their knowledge and service quality.Charan Charan2024-03-01Best accounting team ever
Four Steps to Get Your Partnership Firm Registration
Fill the Form
Provide business details
Add to cart
Pay the required fee online
Submit Documents
Upload required papers
Certificate delivery
Official Document Delivery
Find the best plan for your needs
Basic Plan
+GST
- Drafting of Partnership Deed
- Assistance in Partnership Deed Registration
- PAN & TAN Application
- Current Account Opening Support
- Electronic Certificate Delivery
Premium Plan
+GST
Standard Plan
+
- Form-1 Filing/Application
- Trade license
- Shops & Establishment License
- GST Registration
- Business Letterhead(10 copies)
- Partnership Firm Seals
Overview of Partnership Firm
A partnership firm in India is a business structure where two or more individuals come together to conduct a business and share profits and losses. Governed by the Indian Partnership Act, 1932, this structure allows partners to pool resources, skills, and capital, providing flexibility and ease of management. Partners have joint and several liabilities, meaning they are individually and collectively responsible for the firm’s obligations.
The partnership agreement, whether oral or written, outlines the terms of the partnership, including profit sharing, duties, and the duration of the partnership. Registration of a partnership firm is optional but recommended for legal benefits. Unlike corporations, partnership firms are not separate legal entities from their partners, which can impact liability and tax considerations.
A partnership firm in India is a business structure where two or more individuals come together to conduct a business and share profits and losses. Governed by the Indian Partnership Act, 1932, this structure allows partners to pool resources, skills, and capital, providing flexibility and ease of management. Partners have joint and several liabilities, meaning they are individually and collectively responsible for the firm’s obligations.
The partnership agreement, whether oral or written, outlines the terms of the partnership, including profit sharing, duties, and the duration of the partnership. Registration of a partnership firm is optional but recommended for legal benefits. Unlike corporations, partnership firms are not separate legal entities from their partners, which can impact liability and tax considerations.
Advantages & Disadvantages
Advantages of Partnership Firm
Easy to Start
Minimal compliance and easy setup process for starting operations.
Shared Responsibility
Partners share business responsibilities, reducing individual workload and stress.
More Capital
Increased investment opportunities with capital pooled from multiple partners.
Better Decision-Making
Collective wisdom enhances decision-making and strategic planning.
Flexible Management
Partners can negotiate roles, allowing for adaptable management styles.
Tax Benefits
Partnership income is taxed once, avoiding double taxation of corporate entities.
Advantages & Disadvantages
Disadvantages of Partnership Firm
Unlimited Liability
Partners' personal assets can be at risk for business debts.
Conflict Potential
Differences in opinions can lead to disputes and inefficiency.
Instability
Partnership can dissolve easily with the exit or death of a partner.
Profit Sharing
Profits must be shared among partners, which can reduce individual earnings.
Limited Capital
Raising large amounts of capital can be more difficult compared to corporations.
Lack of Continuity
The partnership may lack continuity if a partner decides to leave the firm.
Minimum Requirements
As Per Indian Partnership Act, 1932, there are Minimum Requirements that need to be met For Partnership Firm Registration in India.
Minimum of Two Partners
Partnership Agreement
Business Objectives
Profit Sharing
Documents for Partnership Firm Registration
The following documents need to be scanned and attached for Partnership Firm Registration
Identity & Address of Partners
Registered Premises Documentation
Identity & Address of Partners
Scanned Copy of PAN & Aadhaar/Driving License/Passport/Voters ID
Copy of Recent Utility Bills or Bank Statement (Not Older Than 2 Months)
Digital Passport-Size Photo
Email ID & Phone Number
Registered Premises Documentation
Copy of Recent Utility Bills (Not Older Than Two Months)
Scanned Notarized Rental Agreement (English Version)
Scanned No-Objection Certificate from Property Owner
Scanned Copy of Sale/Property Deed in English (For Owned Property)
Scanned Copy of PAN & Aadhaar/Driving License/Passport/Voters ID
Copy of Recent Utility Bills (Not Older Than Two Months)
Copy of Recent Utility Bills or Bank Statement (Not Older Than 2 Months)
Scanned Notarized Rental Agreement (English Version)
Digital Passport-Size Photo
Scanned No-Objection Certificate from Property Owner
Email ID & Phone Number
Scanned Copy of Sale/Property Deed in English (For Owned Property)
Note: The registered office for your business can be a residential address; it does not need to be a commercial space.
Partnership Firm Registration Procedure
Registration of Partnership Firm in India involves a series of steps
Choose a Unique Name: Select a name that has not been previously used or trademarked by another business. The name should not contain words that imply government association unless permitted.
Avoid Prohibited Terms: Ensure the name does not contain words prohibited under the Emblems and Names Act, 1950.
Draft the Deed: Prepare a comprehensive partnership deed. This document should outline crucial details such as the business’s nature, capital contributed by each partner, profit-sharing ratio, duties and responsibilities of each partner, rules for admission, retirement, and expulsion of partners, and dissolution procedures.
Franking the Deed: Once the deed is drafted, it must be executed on a non-judicial stamp paper. The value of the stamp paper varies from state to state and is typically a percentage of the total capital of the firm or according to the regulations of the specific state’s Stamp Act.
Voluntary Registration: Registration of the partnership firm under the Partnership Act, 1932, is not mandatory but is advisable due to the legal benefits it offers, such as the ability to file suits against third parties and other dispute resolution benefits.
Filing an Application: To register, file an application with the Registrar of Firms of the respective state. The application should include the partnership deed, and details like the name and address of the firm, names and addresses of partners, date of business commencement, and duration of the firm if it is not perpetual.
Payment of Fees: Submit the required registration fee, which can vary based on the state.
Verification by the Registrar: Once the application is submitted, the Registrar of Firms will review and verify the provided details.
Issuance of Certificate: If the application is approved, the Registrar will issue a Certificate of Registration. This certificate serves as formal recognition of the firm’s legal existence under the Partnership Act, 1932.
Documents Received After Partnership Firm Incorporation
Incorporation Certificate                                
Permanent Account Number (PAN) of the company    Â
Tax Deduction Account Number (TAN) of the CompanyÂ
Articles Of Association (AOA)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
Memorandum Of Association (MOA)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
Direction Identification Number (DIN)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
Digital Signature Certificate (DSC)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
Company Master Data                                 Â
From GST to ITR
A Partnership Firm in India must comply with various regulations depending on the nature of the business, its location, and turnover.
If the turnover of the business exceeds the threshold limit (currently Rs. 20 lakhs for service providers and Rs. 40 lakhs for goods suppliers, with variations for special category states), GST registration is mandatory. The Partnership Firm will need to file monthly, quarterly, or annual GST returns based on the type of registration and turnover.
Local municipal authorities require businesses to obtain a trade license. The requirement for this license varies by locality and type of business. It is essential for legally operating a business within municipal limits.
This tax is levied by the state governments on all professions, trades, and employments. The rules and rates differ from state to state. Partnership Firm need to register for professional tax if they have employees or if they themselves are engaged in any profession.
This license is mandatory for all business entities that operate within the premises of a shop or commercial establishment. Registration under this Act is compulsory within 30 days of starting a business and helps in regulating conditions of work and employment.
A partnership firm in India must file an annual income tax return, where the firm’s income is taxed collectively, and partners pay taxes on their share of profits individually, adhering to IT rules, including advance tax if applicable.
Depending on the specific sector the business operates in, other compliances such as FSSAI licensing for food businesses, Import Export Code (IEC) for trading businesses, and environmental clearances might be required.
How V Smart Auditor can help ?
Our expert team at V Smart Auditors is committed to making your One Person Company incorporation process as seamless as possible. Here’s what you can expect when you choose us as your partner:
