Partnership Firm Registration

Partnership Firm Registration in India – Complete Guide

What is a Partnership Firm?

A Partnership Firm is a business structure where two or more people come together to run a business and share profits and responsibilities as per a mutually agreed Partnership Deed. It is governed by the Indian Partnership Act, 1932.

Partnership firms can be either:

• Registered (with the Registrar of Firms)

• Unregistered (legally valid but with limited rights in legal disputes)

Key Features:

• Minimum 2 partners, maximum 20

• Governed by a Partnership Deed

• Shared responsibilities, capital, and profits

• Less compliance compared to companies or LLPs

• No minimum capital requirement

Benefits of Registering a Partnership Firm:

• Simple formation and minimal compliance

• Shared decision-making and risk

• Better borrowing capacity than a sole proprietorship

• Easy to dissolve or reconstitute

• Legal rights in case of disputes (only if registered)

Documents Required:

For Partners:

• PAN Card

• Aadhaar Card / Passport / Voter ID

• Passport-size photo

• Address proof (Bank Statement/Utility Bill – not older than 2 months)

For Office:

• Rent agreement or property ownership proof

• Utility bill (electricity, water, gas)

• NOC from landlord (if rented)

Partnership Deed Must Include:

• Firm name and business address

• Details of all partners

• Capital contribution by each partner

• Profit/loss sharing ratio

• Duties, rights, and obligations of partners

• Duration and conditions of partnership

• Rules for admission, retirement, and dissolution

Registration Process:

1. Draft the Partnership Deed

   • On stamp paper (value depends on the state)

2. Notarize the Deed

   • With signatures of all partners

3. Apply for Registration (Optional but Recommended)

   • Submit application to Registrar of Firms in your state with:

     • Form 1

     • Certified copy of the Partnership Deed

     • Affidavit and address proof

4. Receive Registration Certificate

   • Issued by the Registrar of Firms

Time Required:

• 2–5 days for deed creation and notarization

• 7–10 days for government registration (varies by state)

Cost of Registration:

• Starts from 2,000 – 10,000, depending on:

  • State

  • Stamp duty

  • Professional fees

Post-Registration Compliances:

• PAN application for the firm

• Open a current bank account

• GST registration (if applicable)

• MSME/Udyam registration (optional)

• File ITR annually under firm’s PAN

Why Choose SSA TAX for Partnership Registration?

We offer complete assistance for:

• Drafting Partnership Deed

• Notarization & documentation

• PAN & GST registration

• MSME/Udyam registration

• Annual tax and legal compliance