Partnership firm registration deed drafted within 2 days
- Fast track registration: Get a 2 day guaranteed application submission or receive a full refund T&C*
- 24/7 Tax Expert available to help with your questions
- Customer Support Available in 6 Languages including English
- We Provide Top Notch Tax Compliance Services Across the County
- Money back Policy
Google Reviews
.png){kind=small}
4.5/5
10.5k+ Happy Reviews
Partnership Firm Register Through Us
0
+
Google Reviews
4.5/5
10.5k+ Happy Reviews
Partnership Firm Register Through Us
0
+
Partnership Firm - Overview
Partnership Company registration in India is an arrangement between two or more people to conduct business operations together. In this type of partnership, profits and liabilities are shared among members, making it a common choice for small businesses and entrepreneurs.
A business established by two or more partners with the goal of achieving a profit is called a partnership firm registration. There are benefits to registering a partnership firm. The legal document used to establish a partnership company registration is known as a partnership deed.
The Indian Partnership Registration Act of 1932 is the primary governing partnership registration law in India. A partnership, as defined by the law, is a union of individuals who have consented to divide the profits from a company that they all, or any of them, act for a banking business. A partnership firm registration can only have a maximum of 10 members, whereas for other enterprises, it can have a maximum of 20 members.
While the partners are separate legal entities, partnership firms are not. A partnership firm registration is not permitted to be a debtor, creditor, or property owner. According to the law, the assets, liabilities, and credit of a partnership registration firm belong to the partners. To prevent future misunderstandings, the partnership agreement must specifically state how profits and losses will be distributed among the partners. Each partner is allowed to conduct business on behalf of the others.
Given its low expenses, simplicity of setup, and lack of stringent compliance requirements, it makes sense for some businesses, such as home-based ones that are unlikely to go into debt to register themselves as partnership firms. General partnerships have an optional registration process. To draft a current original partnership deed registration format, get in touch with our Vakilsearch experts right away. If there are fewer than two partners after a partner’s death, incapacitation, or resignation, the partnership firm registration will be dissolved.
Our Fees
Fees For Partnership Registration are:
Basic Plan
₹
999/-
+Govt. Fees
- Expert assisted process
- Partnership deed drafting in 3 days
- PAN Card
- Call, Chat, Email Support
Premium Plan
₹
3999/-
+Govt. Fees
- Expert assisted process
- Partnership deed drafting in 2 days
- GST Registration
- GST Return Filing For 12 Months
- PAN Card
- Trademark Registration for your Brand
- ITR Filing for one financial year
- Expert advice by CA/CS
- Call, Chat, Email Support
Standard Plan
₹
2999/-
+Govt. Fees
- Expert assisted process
- Partnership deed drafting in 2 days
- GST Registration
- PAN Card
- ITR Filing for one financial year
- Expert advice by CA/CS
- Call, Chat, Email Support
Benefits of Partnership Firm
The Benefits of Registering Your Firm are:
Minimum Compliance
Lawful business
Mutual agency
Sharing of profits and losses
Eligibility for Partnership Firm Registration Online
Anyone with the legal capacity to enter into a contract may enter into the partnership agreement. Every individual who meets the legal requirements for majority, is of sound mind, and is not prohibited from contracting by any laws to which they are subject, may form a partnership.
The following people are eligible to enter into a partnership
1. Individual: A person who has the legal capacity to enter into a contract may join the partnership firm as a partner. An individual can be a partner in a company with more than two partners both as himself and as a representative known as Karta of the Hindu undivided family.
2. Firm: Because a partnership firm is not a person, it cannot form a partnership with another firm or person. Yet, a partner in a partnership firm is free to form a partnership with another individual and split the firm’s profits with his other parent company partners.
3. Hindu Undivided Family: As long as the member has contributed their own effort and ability, a Karta of the Hindu undivided family may join a partnership in his or her individual capacity.
4. Company: If permitted to do so by its goals, a business may join a partnership firm registration as a partner because it is a juristic person.
5. Trustees: Unless its constitution or goals forbid it, trustees of private religious trusts, family trusts, Hindu mutts, and other religious endowments are legal persons and can thus form partnerships.
Steps for Partnership Firm Registration Online
- Step 1: Submit a Register Partnership Firm Application
The Registrar of Firms in the state where the company is located must receive an application form and the required fees. All partners or their representatives must sign and verify the registration application. - Step 2: Choosing the Name of the Partnership Firm
A partnership firm registration can be referred to by any name. But make sure they abide by the rules—for example, no two names should be the same, nothing related to the government, etc. - Step 3: Registration Certificate
The firm will be registered in the Register of Firms and given the Registration Certificate if the Registrar is pleased with the registration application and supporting documentation. All firms’ most recent information is available in the Register of Firms, which anybody can access for a fee.
Characteristics of Partnership Firm
1. Number of Partners: A partnership registration must have at least two partners. When performing banking transactions, the maximum is 10; in all other situations, the maximum is 20.
2. Voluntary Registration: Although it is not required to register a partnership, it is always advisable to do so because doing so has many additional advantages.
3. Contractual partner: There is a contractual tie between each partner. A original partnership deed registration format proposes that in order on various aspects governs the relationship. Each and every partner signs the deed, binding each and each of them.
4. Competency of the Partners: According to the Act, the partners entering into the agreement must be competent adults and cannot be minors.
5. Profit and Loss Sharing: The partners divide the profits or losses according to the percentages that were agreed upon and recorded in the agreement.
6. Unlimited Liability: In all partnership firm registartion governed by the aforementioned Act, each partner is jointly and severally liable for any losses incurred by the firm.
7. Interest Transfer: A partner’s interest may not be transferred without the other partners’ approval.
8. Principal-agent relationship: Partners and the firm have a principal-agent relationship. The agent acts on behalf of the company, so it is expected that he will act in the company’s best interests. Any one of the partners may act on behalf of the other partners, or the entire partnership may carry out the business jointly.
Need and Importance of Partnership Firm
A partnership firm is a business entity that is formed by two or more individuals who agree to share the profits and losses of the business in a specific ratio. Partnership firms are relatively easy to form and operate, and they offer a number of advantages over other business structures, such as sole proprietorships and companies.
Need and importance of partnership firm:
- Pooling of resources: Partnership firms allow two or more individuals to pool their resources, such as capital, skills, and experience, to start and run a business. This can be particularly beneficial for small businesses that may not have the resources to start a company on their own.
- Shared responsibility and decision-making: Partners share the responsibility of running the business and making decisions. This can be a great advantage, as it allows partners to draw on each other’s strengths and expertise.
- Tax flexibility: Partnership firms are taxed as pass-through entities, which means that the profits of the business are passed on to the partners and taxed at their individual tax rates. This can be a tax advantage for partners who are in a lower tax bracket than the business
- Easy to form and dissolve: Partnership firms are relatively easy to form and dissolve. All that is required is a partnership agreement between the partners. This agreement should outline the terms of the partnership, such as the profit-sharing ratio, the roles and responsibilities of each partner, and the procedure for dissolving the partnership.
Partnership Deed Format
The legal options available to the firm’s partners are summarised in a partnership deed format. It should cover:
- Each partner’s obligations, rights, and liabilities are governed by it
- The deed contains all of the terms and circumstances of the partnerships, which is very beneficial in preventing misunderstandings between the partners
- The partnership deed will be simply referred to in the event of a dispute among the partners, making a resolution simple
- The partners’ misunderstanding of how to split losses and receive reimbursement for earnings
- Explains the part played by each partner
- The partnership deed will also include sections that specify the amount of compensation that shall be paid.
Duties of Partners in Partnership Registration
1. Fiduciary Duty: Partners have a fiduciary duty to act in the best interests of the partnership and fellow partners. This includes acting honestly, in good faith, and with loyalty to the partnership.
2. Financial Contributions: Partners are typically required to contribute financially to the partnership according to the terms outlined in the partnership agreement. These contributions can include capital investments, property, or other assets.
3. Management and Decision-Making: Partners share the responsibility of managing the partnership’s operations. They must participate in decision-making and contribute their skills and expertise to benefit the partnership.
4. Partnership Agreement: Partners should follow the terms and conditions set out in the partnership agreement. This legal document outlines the rights, responsibilities, and obligations of each partner, as well as the rules for profit distribution, decision-making, and dispute resolution.
5. Due Diligence and Care: Partners have a duty to exercise reasonable care and diligence in carrying out their responsibilities. They should make informed decisions, avoid conflicts of interest, and seek advice when necessary.
6. Financial Reporting: Partners are often required to maintain accurate financial records and provide regular financial reports to other partners. Transparent financial reporting helps ensure accountability and proper management of the partnership’s finances.
7. Non-Compete and Non-Disclosure: Partners may have obligations not to compete with the partnership’s business or disclose confidential information to third parties. These obligations protect the partnership’s interests and trade secrets.
8. Acting in Partnership’s Interest: Partners should prioritize the interests of the partnership over personal interests. They should not engage in activities that harm the partnership’s reputation, finances, or operations.
9. Contributing Effort and Expertise: Partners are expected to contribute their skills, knowledge, and effort to the partnership’s success. Each partner’s unique contributions help enhance the partnership’s value and competitiveness.
10. Good Faith and Fair Dealing: Partners should treat each other with respect and fairness, engaging in honest and transparent communication. They should work collaboratively and resolve conflicts amicably to maintain a positive partnership environment.
11. Adhering to Legal and Regulatory Requirements: Partners must ensure that the partnership operates in compliance with applicable laws, regulations, and licenses. This includes fulfilling tax obligations, obtaining necessary permits, and meeting reporting requirements.
Duties of Partners in Partnership Registration
1. Fiduciary Duty: Partners have a fiduciary duty to act in the best interests of the partnership and fellow partners. This includes acting honestly, in good faith, and with loyalty to the partnership.
2. Financial Contributions: Partners are typically required to contribute financially to the partnership according to the terms outlined in the partnership agreement. These contributions can include capital investments, property, or other assets.
3. Management and Decision-Making: Partners share the responsibility of managing the partnership’s operations. They must participate in decision-making and contribute their skills and expertise to benefit the partnership.
4. Partnership Agreement: Partners should follow the terms and conditions set out in the partnership agreement. This legal document outlines the rights, responsibilities, and obligations of each partner, as well as the rules for profit distribution, decision-making, and dispute resolution.
5. Due Diligence and Care: Partners have a duty to exercise reasonable care and diligence in carrying out their responsibilities. They should make informed decisions, avoid conflicts of interest, and seek advice when necessary.
6. Financial Reporting: Partners are often required to maintain accurate financial records and provide regular financial reports to other partners. Transparent financial reporting helps ensure accountability and proper management of the partnership’s finances.
7. Non-Compete and Non-Disclosure: Partners may have obligations not to compete with the partnership’s business or disclose confidential information to third parties. These obligations protect the partnership’s interests and trade secrets.
8. Acting in Partnership’s Interest: Partners should prioritize the interests of the partnership over personal interests. They should not engage in activities that harm the partnership’s reputation, finances, or operations.
9. Contributing Effort and Expertise: Partners are expected to contribute their skills, knowledge, and effort to the partnership’s success. Each partner’s unique contributions help enhance the partnership’s value and competitiveness.
10. Good Faith and Fair Dealing: Partners should treat each other with respect and fairness, engaging in honest and transparent communication. They should work collaboratively and resolve conflicts amicably to maintain a positive partnership environment.
11. Adhering to Legal and Regulatory Requirements: Partners must ensure that the partnership operates in compliance with applicable laws, regulations, and licenses. This includes fulfilling tax obligations, obtaining necessary permits, and meeting reporting requirements.
How to Check Partnership Firm Registration Status?
- Step 1: Visit the Ministry of Corporate Affairs (MCA) website
- Step 2: Click on the ‘MCA Services’ tab and select ‘View Company or LLP Master Data’ from the drop-down menu
- Step 3: Enter the partnership firm’s name or registration number in the search field and click on the ‘Search’ button the partnership firm will be displayed, including its registration number, date of registration, and address
- Step 4: If the partnership firm is not registered, a message stating ‘No matching records found’ will be displayed.
WHY US?
Trained and Professional Experts
On Time Service
Money Back Policy
Quick Response Team
Affordable Than Other Professionals
1 Lakh+ Happy Customers Across India
Popular Services
INDIA'S TOP SERVICE PROVIDER
TAX | LEGAL | ACCOUNTANT
Associated with
Client Reviews
Unique Guru2023-12-16Maine apni income tax return file krvai hai aur inki team ne voh return 2 ghnte m file krdi m sabko recommend krta hu casumit yadav koHarpal Singh2023-12-15I had a wonderful experience with sumit yadav when I incorporating my OPC their team response was very fast and they start registering my company within 2 or 3 hours, sumit yadav tax consultancy was best in delhiDavid Miller2023-12-14recently utilized Sumit Yadav tax consultancy for my company's registration and was throughly impressed with the seamless process. Both sumit yadav & their team went above and beyond in their support, exceeding all expectations. Their professionalism and dedication are commendable. Highly recommended!hema arya2023-12-11Best service provider at reasonable rates Good customer behaviour
FAQs
To register a partnership firm in India, you need several documents, including:
1. Application for Registration (Form 1).
2. A duly signed and notarized Partnership Deed.
3. Proof of the principal place of business (like rent agreement or property documents).
4. ID and Address proof of all partners.
5. Affidavit stating the willingness of the partners. Please consult a legal advisor for comprehensive information.
1. Application for Registration (Form 1).
2. A duly signed and notarized Partnership Deed.
3. Proof of the principal place of business (like rent agreement or property documents).
4. ID and Address proof of all partners.
5. Affidavit stating the willingness of the partners. Please consult a legal advisor for comprehensive information.
Yes, a partnership firm can be converted into a company in India. This is governed by Section 366 of the Companies Act, 2013. There are specific procedures and requirements to be followed for the conversion.
Yes, An audit is mandatory for all partnership firms in India. As per the Income Tax Act, only those firms whose turnover exceeds ₹1 crore in case of a business, or ₹50 lakhs in case of a profession, during a financial year need to get their accounts audited.
No, the preparation of a Partnership Deed is not compulsory for registering a partnership firm. It is a document that outlines the rights, duties, and responsibilities of each partner and the terms of the partnership. But it is recommended to draft a deed. Get in touch with our legal experts today!
Converting a partnership into a private company involves several steps:
1. Obtain No Objection Certificate (NOC) from the secure creditors, if any.
2. Apply for the Director Identification Numbers (DIN) for all partners.
3. Apply for the Digital Signature Certificate (DSC) for all partners.
4. File Form URC-1 with the Registrar of Companies.
5. Submit all necessary documents (like the Partnership Deed, Statement of Accounts, etc.).
6. Once approved, the Registrar of Companies will issue a Certificate of Incorporation, which signifies the completion of the conversion. Consult our compliance expert today!
1. Obtain No Objection Certificate (NOC) from the secure creditors, if any.
2. Apply for the Director Identification Numbers (DIN) for all partners.
3. Apply for the Digital Signature Certificate (DSC) for all partners.
4. File Form URC-1 with the Registrar of Companies.
5. Submit all necessary documents (like the Partnership Deed, Statement of Accounts, etc.).
6. Once approved, the Registrar of Companies will issue a Certificate of Incorporation, which signifies the completion of the conversion. Consult our compliance expert today!
To formalise a partnership firm in Tamil Nadu, specific prerequisites must be met:
Minimum Number of Partners: The formation of a partnership requires a minimum of two partners.
Drafting a Partnership Deed: The partners are obligated to prepare a partnership deed, which delineates the terms and conditions of their cooperation.
Partnership Deed Stamping and Notarization: It is crucial to have the partnership deed stamped and notarized, signifying its legal validation.
Obtaining a Permanent Account Number (PAN): The partners must secure a PAN for the firm, which serves as its unique tax identification.
Additionally, certain necessary documents are required from the partners. These include:
These prerequisites and documents collectively enable the formal registration of a partnership firm in New Delhi, ensuring it functions within the legal framework
Minimum Number of Partners: The formation of a partnership requires a minimum of two partners.
Drafting a Partnership Deed: The partners are obligated to prepare a partnership deed, which delineates the terms and conditions of their cooperation.
Partnership Deed Stamping and Notarization: It is crucial to have the partnership deed stamped and notarized, signifying its legal validation.
Obtaining a Permanent Account Number (PAN): The partners must secure a PAN for the firm, which serves as its unique tax identification.
Additionally, certain necessary documents are required from the partners. These include:
- PAN Card
- Aadhaar Card
- Driver’s License
- Passport
- Voter ID
- Sale deed (in case a partner owns the premises)
- Rental agreement copy (if the property is rented)
- Latest electricity bill (not more than 3 months old)
These prerequisites and documents collectively enable the formal registration of a partnership firm in New Delhi, ensuring it functions within the legal framework
Yes, a partnership firm registered in Delhi can operate in other states as well. However, if you plan to establish branch offices or carry out business activities extensively in other states, you may need to comply with additional requirements, such as obtaining necessary licenses or registrations specific to those states.
The stamp duty for partnership deeds in Haryana is generally a fixed fee of INR 1,000, regardless of the amount of capital involved in the partnership. However, rules and rates can change, and the stamp duty can vary based on factors like the nature of the partnership, the total capital involved, and other specific details.
To register a partnership firm in Madhya Pradesh, the following criteria must be met:
- The firm must have at least two partners.
- The partners must be competent to contract.
- The partners must agree to share profits and losses.
- The firm's business must be lawful.