Partnership Registration
7 days process, GST Registration + MSME Registration + PAN + TAN
Online Partnership Registration in India Starting at just Rs. 3499/-
A General Partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in the Partnership Deed. This structure is thought to have lost its relevance since the introduction of the Limited Liability Partnership (LLP) because its partners have unlimited liability, which means they are personally liable for the debts of the business. However, low costs, ease of setting up and minimal compliance requirements make it a sensible option for some, such as home businesses that are unlikely to take on any debt. Registration is optional for General Partnerships.
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Shared Responsibilities
The term partnership itself describes individuals coming together for some common business item. The partners share the responsibility of working and managing the business together. Responsibilities for a particular area or task can be assigned to one or more partners by pointing them to a partnership deed
Operating Flexibility
A partnership firm is operated on a mutually executed partnership deed by the partners. The partners can decide how to conduct business with their mutual consent. Further, the partnership deed can be changed as per the requirement even after the completion of partnership deed registration.
Pre-defined Object or Period
At the time of registering the partnership firm, the deed covers pre-defined business objectives and activities, which are the main objectives of starting the business. A partnership can be formed within a specified period or to complete a specific project or item. Once this is completed, the partnership will automatically dissolve.
Various Financial Returns to the Partners
Partners associated with the firm receive a range of returns for their capital as well as their personal efforts. The working partner receives remuneration in addition to the benefit of interest and profit on capital, as agreed by the partner. Also, there is an exemption for the partner receiving part of the profit from the partnership firm.
Comparatively Economical
Compared to LLP, a general partnership is much cheaper to start. Even in the long run, it will still work cheaply because compliance requirements are very low. For example, an auditor is not required. Therefore, home businesses still opt for this, although it offers unlimited liability.
Simple To Begin
A general partnership may begin with an unregistered deed of partnership within just 2-4 business days. However, being registered for the same has its perks and benefits. The primary benefit of being a registered firm is that it will allow you to book court-court lawsuits as opposed to any other business or business associates in the partnership.
A. Basic Documents to Start a Partnership
- Notarised Partnership Agreement
- Registered address proof
- It should not be older than 2 months
- NOC from the owner of the premises
B. Documents of all partners of the Firm
- Two Photograph
- Copy of PAN Card
- Valid Identity Proof
- Latest Address Proof
Step-1:Documentation - Day - 1
The process begins with the documentation of the partners and the place of business from where the firm will conduct its business in India. Ensure that the documents are updated and correct. The list of required documents is provided above the list of documents required for your reference. We will also need information in the Partnership Formation Questionnaire, a questionnaire for the Partnership Formation.
Step-2:Selection of Name - Day - 1
The name of the partnership firm should be cross-checked with the trademark registry to avoid infringement of any other trademark or brand name. Choosing a proper name should be the starting point, we search the firm's proposed name in the trademark register to avoid any infringement on someone else's trademark. To learn more on Treadman.
Step-3:Drafting of Partnership Deed - Day - 1
A partnership agreement or deed is the main document of the firm and is also considered to be the constitution of the firm which sets out the mutual rights of the partners among themselves. This document also specifies the ratio of capital and profit sharing and how the firm will operate by partners.
Step-4:Payment of Stamp Duty for the Partnership Deed - Day - 1
After the draft the partnership agreement is approved and adopted by the parties, the stamp duty is to be paid on the partnership deed which varies from state to state and the capital of the partnership agreement. We have not included the value of stamp duty in any of our packages and are required to be paid by customers on an actual basis.
Step-5:Signing of Partnership & Notary of Deed - Day - 2
Finally the partnership deed is signed by the partners in the presence of two witnesses and then the deed must be noted by presenting it to a notary public.
Step-6:PAN Number Allotment - Day - 2-7
The partnership firm needs to make an application in the prescribed form before the income tax department for the allotment of PAN, The acknowledgement of pan application for the partnership firm is received within the same day, however, the pan is allotted within a week time.
Step-7:TAN Number Allotment - Day - 2-7
The tan number is a permanent number assigned to the business to comply with the provisions of the tax. You need to deduct TDS while making the payment, so the next step is to get a TAN number, which is mandatory to submit TDS return.
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1. What is the difference between a partnership firm and other forms of business?
Any voluntary association of persons registered as a company and formed for the purpose of any common object is called a company. But a partnership is the relation between two or more individuals who have agreed to share the profits of a business carried on by all or any of them acting for all. -
2.What are the pre-requisites for Starting a Partnership Firm in India?
To start a partnership firm, the minimum number of partners is two, while the maximum number of partners can be 20. Partners must come together to run any legal business for the purpose of making profits. -
3. What are the types of partnership firm?
The partnership business is regulated under the Indian Partnership Act, 1932. Which determines the probability of two types of firm, unregistered firm and registered firm. A non-registered firm is formed by entering into an agreement between two competent individuals, known as partners, where the firm is not registered with the Registrar of Firms. Whereas the firms which subsequently get registered with the Registrar of Firms by submitting partnership deed and KYC of the partners and the registered office is known as Registered Partnership Firm. -
4. Do I have to file an annual return to the registrar of firms?
Unlike a limited company or LLP, the filing of an annual return is not required for a partnership firm. However, income tax returns will be required to be submitted at the end of the financial year and within the due date. There is no provision of audit under partnership, so a firm is not required to audit its books. However, if the turnover crosses 2 crores, then tax audit is mandatory. -
5.Can I convert a Partnership Firm into a Private Limited Company or LLP?
Yes, a partnership firm can easily be converted into a limited liability partnership or a private limited company. A partnership is an old way of doing business; We always recommend starting a business in private limited form.
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