What is Partnership Firm?

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. There are two types of Partnership firms, registered and un-registered Partnership firm. It is not mandatory to register a partnership firm; however, it is advisable to register a Partnership Firm

Advantages of Registering Partnership Firm:

  • Easy to start business in the unorganized business sectors
  • Annual Filing is not required unlike a Limited Liability Partnership or Company.
  • Easy admission and resignation of Partners.
  • Least Compliance as compared to other forms of business startup.
  • Tax benefits over the other forms of business startup
Requirements

Basic Requirements for Partnership Firm Registration

  • Minimum two(2)persons and Maximum twenty(20) Persons.
  • No Foreign Direct Investment (FDI)allowed.
STEPS

Steps involved in the registration of Partnership Firm:

  • Selection of Name: A Partnership firm needs to be started with a separate name by declaring the same in the agreement to be the name of the firm by the partners.
  • Partnership Deed Drafting: Drafting of the Partnership Deed has to be done which determines the relationship of partners among themselves as well as the relation of partners vis a vis firm.
  • Partnership Deed Notarisation: Partnership deed to be signed by all the partners, stamped and notarized at the place where the registered office of the form is situated
  • Partnership Firm Registration: Submission of partnership Firm registration documents under the Indian Partnership Act 1932 with the Sub Registrar of Firms along with duly executed partnership deed. Registration Certificate will be issued.
  • PAN & TAN: File Application for PAN & TAN with NSDL
Documents

Documents Required for Partnership Firm Registration

  • Application for Registration in FORM NO. I
  • Signature of all the partners on Form No 1 duly attested by CA / Advocate
  • A signed copy of the Partnership Deed, duly stamped and notarised.
  • Self-attested Copy of Pan Card, ID Proof and Address Proof (Aadhar is Must) of all partners
  • Premises Proof where registered office of the firm shall be situated.
  • Passport size photographs of all partners