What is Partnership?

Partnership firms in India are governed by the Indian Partnership Act, 1932.A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start and prevalent amongst small and medium sized businesses in the unorganized sectors.

Registration is optional for General Partnership. It is not compulsory to register a Partnership firm; however, it is advisable to register a Partnership firm due to the added advantages. Partnership firms are created by drafting a Partnership deed amongst the Partners.

How to register a partnership firm in India

The registration of a partnership firm effected by sending a statement in the prescribed form and accompanied by the prescribed fee and a true copy of the deed of partnership stating :

(a) The firm-name
(b) The nature of business of the firm
(C) The place or principal place of business of the firm
(d) The names of any other places where the firm carries on business
(e) The date when each partner joined the firm
(f) The names in full and permanent addresses of the partners, and
(g) The duration of the firm.
The statement shall be signed by all the partners, or by their agents specially authorised in this behalf.

Documents Required for Partnership Registration

  • Documents Required for GST Registration

    • Identity Proof of the Partners
    • Address Proof of the Partners
    • Proof for Registered office in India

Partnership firm registration process

  • Step 1

    Submit your Contact details for discussion with our experts

  • Step 2

    Provide the copy of all the requisite documents

  • Step 3

    Drafting of Partnership deed & application for PAN and TAN

  • Step 4

    Registration of Partnership Deed

Our Prices

Basic

Partnership Registration only

1499 .00

Inclusive of all taxes

Advanced

Partnership Registration + PAN & TAN

1999 .00

Inclusive of all taxes

Premium

Partnership Registration + PAN & TAN + GST Registration

3499 .00

Inclusive of all taxes

Frequently Asked Questions

There is no provision under the partnership Act, 1932 which mandates the registration of partnership. Thus the registration is optional but highly recommended.

No, it is not necessary. As the contract act does not makes it necessary to have the agreement in writing. However, it is always prudent to make a partnership deed to produce to the bank, income tax authorities and to clients with whom the partnership firm deals with. Apart from serving as a reference document a written partnership deed also helps in reducing conflict and confusion in due course of time.

Yes. A person may become a partner with another for a single adventure or undertaking. The term of partnership firm can be for a specific period or for the completion of a specific project or at will. The deed must have a specific mention about the tenure of the partnership agreement. The Even partnership which is created for a specific purpose can be closed before the term with the consent of all the partners.

Yes. A partnership firm can sue or be sued in its own name. The firm is treated separately from its partners. However, the partners do not enjoy limited liability as available in case of LLP or a company. In a situation where the firm is not in a position to discharge its liabilities, the partners shall be called in to pay the liabilities of the firm.

When the partnership deed does not contain any provision for the duration of the partnership nor conditions for the termination of partnership, it is a partnership at will

Partners must be major (above the age of 18), should be sane and should not be disqualified by law from entering into a contract.

Yes. The law presumes that each partner is an agent of the other and while dealing with third parties the partner is representing the partnership firm in good faith. The acts done by one partner is binding on another even if it is not in the knowledge of the other party.

Any property can be treated as the property of the firm by simply showing it as such in the book of accounts. This would constitute partnership property and all partners are joint owners of the partnership property as increased or decreased by profits in the course of business. Property belonging to an individual partner does not become the firm’s property simply by being used for the purpose of the partnership