Partnership Firm Registration – Tax Portal

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Partnership Firm Registration

Home Partnership Firm Registration

Partnership Firm Registration

Start your Partnership Firm quickly with our experience of 14+ years of delivering quality professional services. Our dedicated team will help you to register your partnership firm across India. We will extend our support in Documentation, Preparation, filing, and subsequent Follow-up with the registrar of firms.

The Stepwise Process to Start a Partnership Firm

1. Find out the stamp duty on Partnership Deed
2. Draft Partnership Deed and Get is Notarised
3. Apply for Pan Card of the Partnership Firm
4. Obtain TAN Number from the Income Tax Dept
5. Open Bank Account
6. Go for GST Registration & MSME
Call Back From Startup Specialist

Documents Required for Public Limited Company

Photograph

Two Photograph, Notarised Partnership Agreement

Identity Proof

Valid Identity Proof

Registered office Proof

Proof of Registered Address, It should not be older than 2 months

Pan Card

Copy of PAN Card

Address Proof

Latest Address Proof

NOC from owner

NOC from the Owner of Premises

Important Points of Partnership Form of Business

Minimum Two Person

Two person is needed to become partners of the firm. However, maximum 20 partners are allowed in a firm (10 in banking business)

No FDI is Allowed

Foreign investment in a partnership firm is not permitted. In the firm, only Indian citizen can become the partner and start the partnership firm.

No Minimum Capital

No minimum capital is prescribed, it must be based on the business requirements. The Stamp Duty on the deed is based on the capital of the firm

Unique Name

Name of the firm should be unique, and it must not same or similar to the name of any existing trademark which is registered or applied.

Process & Timeline for Starting Partnership Business in India

  • 01

    Documentation : Day - 1

    The process starts with documentation of the partners and the place of business where from where the firm shall be operating its business in India. Ensure that the documents are updated and correct. The list of documents required is provided above for your reference. We shall also require information in the Questionnaire Partnership Firm For Partnership Formation.
  • 02

    Selection of Name : Day - 1

    The name of the partnership firm should be cross-checked with the trademark registry to avoid any infringement of someone else Trademark or brand name. The selection of a proper name should be starting point, we search the proposed name of the firm in the trademark register to avoid any infringement on someone else's trademark. To learn more on trademark
  • 03

    Drafting of Partnership Deed : Day - 1

    The Partnership Agreement or the Deed is the main document of the firm and is also considered as the constitution of the firm which determines the mutual rights of the partners among themselves. This document also specifies the capital and profit sharing ratio and how the firm shall be operated by the partners.
  • 04

    Payment of Stamp Duty for the Partnership Deed : Day - 1

    After the draft partnership agreement is approved and adopted by the parties the stamp duty on the partnership deed has to be paid which varies from state to state and on the capital of the partnership agreement. In none of our packages we have included the value of stamp duty and it is required to be paid by clients on actual basis.
  • 05

    Signing of Partnership & Notary of Deed : Day - 2

    Finally the partnership deed is signed by the partners in the presence of two witnesses and thereafter the deed should be notarised by presenting the same before a notary public.
  • 06

    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.
  • 07

    TAN Number Allotment : Day - 2-7

    TAN number is a permanent number allotted to business for complying with the provisions of withholding tax. You are required to deduct TDS while making payments, hence the next step is to obtain TAN number, which is mandatory to submit TDS Returns.

Need for Partnership Registration

01.
Partner Cannot sue firm: A partner in an unregistered partnership firm cannot sue the firm for enforcing any rights under the Indian Partnership Act, 1932.
02.
Cannot claim Setoff in a dispute with a third party.
03.
The firm cannot sue third parties whereas the third parties would be able to sue the firm irrespective of registration.

What is Included In Our Partnership Registration Package?

Drafting of Partnership

Name search & approval

TAN

Partnership Pan Card

FAQ's

We have prepared a detailed and easy to understand comparative table showing availability of features and advantages of one form of business to that of others. The same can be found at the end of this page.

To start a partnership firm, the minimum number of partners is two, whereas the maximum number of partners can be 20. The partners must come together to carry on any legal business with the motive of earning profits.
The partnership business is regulated under Indian Partnership Act, 1932. Which prescribes possibility of two types of the firm, unregistered firm, and registered firm. An unregistered firm is formed by entering into an agreement between two competent persons, 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 the copy of partnership deed and KYC of partners and the registered office is known as the Registered Partnership Firm.
Though the Indian Partnership Act, 1932 does not make registration of partnership mandatory, section 69 places certain disadvantages to an unregistered firm. Following are the disadvantages of an unregistered firm.
  • Only a registered partnership firm can claim a setoff
  • An unregistered partnership cannot recover any sum due from third parties if the amount in question is more than Rs. 100/-
  • Only a registered partnership firm can file a legal suit in the court of law for the enforcement of rights against partners.
  • The partners of an unregistered firm cannot file suit against another partner of the firm or the firm itself.

Hence, we strongly advise registering the partnership firm. An unregistered firm can be registered at any time. Every state government has established the office of the registrar of firms, which is vested with the powers to register the firm and issue the Certificate of Registration of the Firm and a copy of the extracts of the register of firms where the partnership name has been entered.

The application for registration of partnership firm is filed with the Registrar of Firms having jurisdiction over the place of business of the partnership firm. The registrar of firms after receipt of the application complete in all aspects with all required documents registers the firm within 1-2 weeks and issues the Certificate of Registration of Firm.
The PAN is a ten-digit alphanumeric number allotted by the Income Tax Department, the application for pan card is filed in Form No 49A. The TAN is a number allotted for TDS Compliance, the application for TAN is filed in Form No 49B. Normally it takes around 6-10 days in PAN allotment and Pan Card Delivery.

 

The law does not provide any specific format for the partnership deed, it is up to the partners what they agree and reduces in writing at the time of starting their partnership firm. The partnership once entered can be changed any number of times. However, each amendment of the deed must be filed with the registrar for its registration. Below is the list of items which should form part of the agreement.
  • The main object and activities of the Firm,
  • The effective date of the firm,
  • The duration of the Partnership Firm,
  • The clause relating Capital Contribution,
  • Profit sharing ratio of the partners,
  • Management and Administration of Partnership Firm,
  • How to resolve disputes,
  • The deed must be signed before two witnesses,
  • The deed should be notarized
Yes, a partnership firm can be converted easily into a Limited Liability Partnership or a Private Limited Company. The partnership is an old method of doing business; we always recommend to start a business in the Private Limited form
A partnership business begins with the creation of an agreement by the partners. As the registration is not mandatory, the business can start on the same day of agreement of the partners. However, the Notarization of the agreement or its registration with the registrar of documents may be taken up later on. Similarly, the registration of firm with the registrar of firms can also be taken up in due course of time. Hence it can be rightly said that it's comparatively easy to start a partnership.
Under partnership form of business, there is no separation of ownership and control. The partners act in confidence to each other and act of one partner is binding on another. Partners monitor and manage the firm without any interference. The decision making in case of a firm is relatively a fast process in comparison to that of the Private Limited company, Limited Liability Partnership (LLP)
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