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Partnership Firm Registration
Package starting @ 3999/-

Although Partnership Firm Registration is optional in India, there are certain prerequisites that must be fulfilled, before registering the firm, as mandated by the Partnership Act, 1932. 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 registration of your firm.

Partnership Firm Registration

The law relating to partnership firm in India is regulated by the Indian Partnership Act of 1932. A partnership is a relationship between individuals who have agreed to share the profits of a business carried on by all or any one of them acting for all as stated in Section 4 of the Indian Partnership Act. Therefore, a partnership consists of three essential elements:

A partnership must be a result of an agreement between two or more individuals;

The agreement must be built to share the profits obtained from the business;

The business must be run by all or any of them representing the rest.

Factors to be decided while setting up a partnership firm

  • Number of Total Partners;
  • Contributory share in capital by each partner;
  • Number of active partners in management of business;
  • Distribution of profits and liabilities.

Checklist for Partnership Firm Registration

Although Partnership Firm Registration is optional in India, there are certain prerequisites that must be fulfilled, before registering the firm, as mandated by the Partnership Act, 1932. These requirements deal with the number of partners, designated partners, name, address, and capital of the firm. A list of such prerequisites for partnership firm registration has been mentioned below:

  • Minimum 2 Partners;
  • Maximum 20 Partners;
  • A registered address of the firm;
  • New, unique and valid name;
  • Some amount of capital.

Process of Partnership Firm Registration

Partnership Firm registration in India is optional under the Partnership Act, 1932. However, to avail the benefits of a number of government schemes and initiatives, it is highly recommended that firms do get registered with the appropriate authority in the manner prescribed under law. We have elaborated the stepwise process of partnership firm registration below:
STEP 1 – Documentation
The process starts of partnership firm registration begins with documentation of the partners and the Registered address of the firm. A complete list of the documents required form Partnership Registration has been mentioned below. You shall have to ensure that the documents are authentic and updated. Please fill out the questionnaire that we share with you and all the documents that we ask for at info@domiyance.com, after quoting the details of the order you’ve placed.
STEP 2 – Consideration of Name of the Firm
The name of your Partnership Firm must be unique and communicative of the brand and business activity of the firm. Moreover, it should not be identical to an existing business and an applied or registered trademark. You can check the availability of proposed names on publicly available databases of existing companies and LLPs available on MCA website, and registered trademarks available on IP India Portal. Register the name of your firm as a trademark to prevent its misuse and plagiarism.
STEP 3 – Drafting of Partnership Deed
The Partnership Agreement or the Deed is the primary document that is the evidence of the constitution of the firm. The partnership deed must contain necessary covenants that determine the mutual rights and obligations that the partners share among themselves. This document also specifies the capital profit-sharing ratios, and the manner in which the partners shall operate their firm. We have a team of skilled and experienced lawyers to help you draft the partnership deed.
STEP 4 – Stamp Duty & Notary of Partnership Deed
After the drafting of the partnership agreement, it must be signed by all partners in the presence of a notary and two witnesses. The notary will then stamp the document to make it valid and legally acceptable. The charges to be paid shall include stamp duty, cost of stamp paper on which the deed has been drafted, and the fee of the notary. All these charges vary from state to state and depend on the firm’s authorised capital as well.
STEP 5 – PAN Card and TAN of the Firm
The application for allotment of PAN Number and issuance of the Pan Card for the Partnership Firm is made in Form No 49A. The application for the TAN number allotted to the firm is filled in Form No 49B. While the PAN card is a necessary document required for income tax compliances, the TAN number is allotted to entitle businesses to deduct and collect taxes at source.
STEP 6 – GST Registration of Partnership Firm
The goods and services tax is paid on the supply of goods or services in India. To fulfil compliances related to GST, like payment of taxes and filing of GST returns , the firm must obtain registration under the GST Act. Refer to our dedicated webpage on GST Registration to learn more about the eligibility and applicability of GST registration for businesses in India.
STEP 7 – Registration of Partnership Firm with ROF
Though Partnership Firm Registration is optional, Section 69 of the Partnership Act specifies the adverse consequences of non registration of partnership firm. An unregistered firm shall not be able to recover any amount exceeding Rs.100 from third parties. Moreover, it will not be able to reap the benefits of favorable government schemes and initiatives meant for small business in India.

Documents Required for Partnership Firm Registration

The application for Partnership firm registration in India must be supported by documents of all partners, the registered address of the business premises, and other legal drafts. A failure to produce any of the required documents might result in the rejection of your application by the Registrar of Firms. For your knowledge and convenience, we have listed below all the documents required for Partnership Firm Registration in India.

Promoter Document

  1. Colour Photo
  2. PAN & Aadhar
  3. Id Proof: (Passport, Voter ID, Driving License, Aadhar)
  4. Address Proof: (Bank Statement or any utility bill like electricity, water or telephone bill. The address proof should not be older than 2 months)

Registered Address Related

  1. Proof of Address: (Latest Utility bill of that address such as electricity bill, water bill or Property Ownership Papers)
  2. NOC: No Objection Certificate from the owner.