Start a partnership firm in India quickly and within one working day. Our consultation and support are available nationwide. We assist in drafting the partnership deed and obtaining the firm’s PAN, TAN, and GST Registration. Talk to our startup advisors for a quick and hassle-free start to your firm.
| Partnership Firm Registration Details | |
|---|---|
| Professional Fee | Starting at ₹4,999/- (Best Fee Guaranteed by Setindiabiz) |
| Government Fee |
The government fee for establishing a partnership firm in India consists of two components:
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| Timeline | The firm can be functional in 1-2 working days. |
| Eligibility |
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| Stepwise Process |
|
| Documents Required |
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To establish a Partnership Firm, you need to meet specific minimum requirements. These include the number of partners, the firm’s name, and its registered office. Below is the table listing the minimum requirements for forming a partnership firm and the documents required for registration as a partnership firm in India. The partners must fulfil both of these requirements to establish, incorporate, and operate a Partnership firm smoothly.
| Documents of Partners | |
|---|---|
| 1. PAN Cards | Mandatory |
| 2. Aadhar Cards | Mandatory |
| 3. Coloured Photographs | Mandatory |
| 4. ID Proofs (any one of the below) |
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| 5. Address Proofs (any one of the below) |
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| Documents of Registered Office | |
| 1. Proof of Address |
|
| 2. NOC from the Property Owner | Required |
| 3. Rent Agreement/Property Tax Receipt | Required |
| Legal Documents | |
| 1. Partnership Deed | Required |
| Note: Address proof for both the promoters and registered office premises should be the latest bill (not older than 60 days). The bill must include the full name and complete address. | |
Registering a partnership firm in India requires filing an application with the Registrar of Firms (ROF) in the prescribed mode. Where the mode is online, applications can be accessed, filled out, and submitted on the Registrar of Firms (ROF) website. Where the mode is offline, the applicant must visit the ROF’s office in the state and apply manually. Regardless of the mode of application, the applicant must navigate through the following steps to complete the Partnership Firm Registration process.
Documentation for Partnership Registration
T
he Partnership Registration process in India starts with preparing the necessary documentation. The primary KYC documents of all partners, such as Aadhar, PAN, Residential address proof, and a colour photograph, are required. For the proof of the Principal Place of business, any utility bill of the premises along with the owner’s NOC is required.
Select a Name of the Firm
The name of your partnership firm must be unique and communicative in terms of its brand and business activity. Moreover, it should not be identical or similar to the name of an existing business or a registered trademark. To check the availability of the selected name, you can use the name search tool on the MCA and IP India websites.
Partnership Deed Registration
Partnership Deed is the legal basis for partnership firm formation in India. The deed is considered valid and legal only when appropriate stamp duty as per the state stamp act is paid. All partners must sign the Partnership Deed in the presence of the notary and two other witnesses.
PAN and TAN of the Partnership Firm
The application for allotment of the firm’s PAN, a crucial identifier for Income Tax compliance, is made in Form 49A. TAN is equally important for TDS compliance, which is necessary for any business. The application for TAN is filed in Form 49B. The Government assigns PAN and TAN to the firm, marking a significant step in the registration process
GST Registration for Partnership Firm
GST registration for partnership firms is necessary to fulfil GST-related compliance requirements, such as paying taxes and filing GST returns. For this, an appropriate application with the required documents is filed with the GSTN for registration under the GST. After the GST registration is granted, the Department allotted a unique GSTIN to the firm. This GSTIN can be used for all GST-related activities in the future.
Partnership Firm Registration with the ROF
To register a Partnership firm in India, you must first check your state’s application mode. If your state allows online registration of a Partnership Firm, you can visit the official ROF website and apply along with the necessary documents and government fees. However, if the application mode is offline, you need to visit the office of the Registrar of Firms (ROF) to apply for partnership firm registration. After the application is processed, the ROF will register your firm and issue a Partnership Firm Registration Certificate in its name.
Although registration of partnership firms is optional in India, Section 69 of the Partnership Act lists various adverse consequences. One of the most significant disadvantages of an unregistered partnership firm is its inability to institute a legal suit to recover anything more than ₹100 from a debtor. This is why every partnership firm must register with the Registrar of Firms. Please note that notary attestation or registration of the partnership agreement before the registrar of documents and deeds under the Registration Act does not amount to firm registration per se. Therefore, be careful while setting up the firm. Our expert advisors are equipped to help you set up your partnership business in India.
The table below compares a Partnership Firm structure with one of the most popular choices of entrepreneurs, viz., a Private Limited Company. By highlighting the advantages and disadvantages of the partnership firm against those of a company, we have attempted to help you make an informed choice of business structure based on your needs, suitability, and resources.
The Indian Partnership Act of 1932 regulates partnership businesses, offering two types of partnership firms: unregistered and registered. An unregistered firm is established based solely on a partnership deed. In contrast, registered firms are further registered with the Registrar of Firms (ROF).
Yes, a partnership firm can be converted easily into a Limited Liability Partnership or a Private Limited Company, the manner for which has been prescribed in the Partnership Act 1932.
Unlike a Limited Company or LLP, a partnership firm does not need to file its annual returns. However, Income Tax Return filing is applicable and mandatory for every firm, even if the firm has had no business in the previous financial year.
Filing Income Tax Returns (ITR) is mandatory for a partnership firm at the end of every financial year. The ITR must be filed on or before the prescribed due date, 31st July. There is no mandatory requirement for firms to conduct annual tax audits. However, the tax audit is applicable when the turnover crosses Rs.1 crore (business turnover) or Rs.50 lakhs (professional services turnover) in a financial year.
Since there is no separation between ownership and management in a partnership firm, the partners are severely and collectively responsible for the firm. One partner’s decision shall be binding on every partner of the firm.
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