Partnership Firm Registration

Partnership Firm Registration in India

Register your business with the guidance from experts throughout the process for an affordable price and get your company into existence within 7 days*.

Market Price	₹7499.00
Our Price	₹6499.00 incl. GST
You Save	₹1000.00 (13.34%)
Government Fee	Included

Includes

Registration Certificate from the State Government
Drafting of Partnership Deed
Stamp Duty for Partnership Deed
PAN Card for the firm

Market Price	₹9499.00
Our Price	₹7999.00 incl. GST
You Save	₹1500.00 (15.79%)
Government Fee	Included

Includes

Registration Certificate from the State Government
Drafting of Partnership Deed
Stamp Duty for Partnership Deed
PAN Card for the firm
Current Account opening for the firm from HDFC
GST Registration

Enquire Now

₹ All Inclusive

Order Now

Overview

Understanding Partnership Firm Registration as a Business Structure

A Partnership firm is mostly preferred by the people who are closely related like family members or relatives. There are two types of Partnerships i.e, Registered & Unregistered Partnership. When two or more persons come together to start a business and if they register the Partnership with the local registrar office, it will become Registered Partnership and if they do not register with the local registrar, then it will become Unregistered Partnership. In Partnership, there will be 2 minimum partners and can have up to 200 partners as the upper limit.

Benefits

What are the advantages of registering a business as a Partnership Firm?

Easy to Start the business

There is not much legal requirement compared to other business types to start the business. It is typically entering the partnership deed and get the business into existence (Unregistered partnership).

Lower Compliance Requirement

Partnerships have to get their accounts audited only when their turnover exceeds 1 Crore rupees which is applicable as per Income Tax Act. They have to follow the minimum compliances of filing Income Tax Return, GST returns if applicable as per GST laws and other relevant laws applicable to the business.

Easy to add or transfer the ownership

At any point of time, it is easy for a partner to add or sell his ownership which can attract the potential investors to join the partnership and can add more capital for the expansion of business subject to the original agreement.

Lower cost to start the business

Starting a partnership firm will involve significantly lesser fees compared to the other business types like LLP or Private Limited Company and cost of running the partnership business is also relatively lesser.

Online Registration

Documents required for registration of a Partnership Firm

PAN & AADHAR Card

PAN & Aadhar Card of all directors Foreign nationals may provide passport

Address Proof

Bank Statement/Electricity Bill of all directors Foreign nationals may provide passport

Identity Proof

Voter ID/ Passport/ Driving License of all directors

Photograph

Passport Size Photos of all directors

Business Address Proof

Electricity bill or Utility bill of the premises

Rent Agreement

Rent Agreement with the Building Owner

NOC From Owner

Declaration from owner for using the address

Other Basic Details

Few other details relating to KYC and background information

Online Registration

Register a Company in a few Easy Steps

Pick your Service that will suit you
Fill out the contact details form
Contact us to get the queries resolved (if any)
Make the payment to close the deal
Receiving the documents
Processing the documents
Prepare the Partnership Agreement and get it signed
Filing the application for registration
Receive the Certificate of Registration
Apply for PAN & TAN

Process

Process to Register a Company in India

Day 1 - 2
- Review of documents and information provided
- Checking Name availability
- Name reservation application under SPICe
Day 3 - 4
- Application for Digital Signature Certificate
- Filing company registration application
- Drafting of MoA, AoA & other required documents
Day 4 - 7

Government processing time
Day 8 - 9
- DIN allotment application
- Application for PAN and TAN of company

What Is The Right Business Structure For You?

LLP vs. Private Limited Company vs. Partnership

	Private Limited Company	One Person Company	Limited Liability Partnership	Partnership Firm	Proprietorship Firm
Act	Companies Act, 2013	Companies Act, 2013	Limited Liability Partnership Act, 2008	Indian Partnership Act, 1932	No specified Act
Registration Requirement	Mandatory	Mandatory	Mandatory	Optional	No
	Registration under Companies Act is mandatory	Registration under Companies Act is mandatory	Registration under LLP Act is mandatory	Unregistered partnerships are legal, but registered entity enjoys certain advantages	There is no registration criteria prescribed. But, registration is recommended
Number of members	2 – 200	Only 1	2 – Unlimited	2 – 50	Only 1
	Minimum 2 and not more than 200 shareholders	Only an individual,and an Indian resident can be the shareholder	No bar on maximum number of partners, but minimum 2 Designated Partners are required	It is formed with minimum 2 partners, but not exceeding 50	Proprietor is the only owner of the firm
Separate Legal Entity	Yes	Yes	Yes	No	No
	It is a separate entity and can own assets in its name	It is a separate entity and can own assets in its name	It is a separate entity and can own assets in its name	It does not have any separate identity from its partners	Proprietor and business are considered the same
Liability Protection	Limited	Limited	Limited	Unlimited	Unlimited
	Limited up to the total value of shares subscribed	Limited up to the value of shares subscribed	Limited up to the capital amount agreed to introduce	Partners are jointly and severally liable to pay the debts of the Partnership Firm	Proprietor’s liability is to pay-off all the debts and obligation of the firm
Statutory Audit	Mandatory	Mandatory	Dependent	Not mandatory	Not mandatory
	Auditor must be appointed within the 30 days of incorporation	Auditor must be appointed within the 30 days of incorporation	Applicable when turnover exceeds INR 40 Lakh or contribution exceeds INR 25 Lakh	Statutory audit not applicable. Tax audit may be applicable based on turnover	Statutory audit not applicable. Tax audit may be applicable based on turnover
Ownership Transferability	Restricted	No	Yes	No	No
	Shares can be transferred with the consent of other Shareholders	Shares are not transferable easily	Ownership can be changed with consent of other partners	Ownership is not transferable easily, clause of partnership deed should be referred	Firm is no different from proprietor and so ownership is not transferable
Uninterrupted Existence	Yes	Yes	Yes	No	No
	Perpetual existence as the management and owners are different. Ownership is easily transferable	Perpetual existence. The nominee will take place of member	Change in Partners or Designated Partners does not affect the existence of LLP	Change in partner leads to dissolution or formation of another partnership firm	Death or insolvency of proprietor directly affects the firm
Foreign Participation	Allowed	Not Allowed	Allowed	Not Allowed	Not Allowed
	Foreign national are allowed to invest under the Automatic Route	Member, nominee and director must be an Indian resident	Foreign nationals are allowed, subject to FDI Guidelines	Foreign nationals are not allowed to be a partner	Foreign Nationals cannot commence proprietorship business
Tax Rates	Moderate	Moderate	High	High	Low
	Tax rate applicable for small companies is reduced to 22%, dividend distribution tax applicable	Tax rate applicable for small companies is reduced to 22%, dividend distribution tax applicable	With tax rate of 30% on business profit, no tax on income distribution to partners	With tax rate of 30% on business profit, no tax on income distribution to partners	Tax rates of individual applied to Proprietorship Firm
Statutory Compliances	High	Moderate	Moderate	Less	Less
	Companies have to meet high compliance requirements	Companies have to meet high compliance requirements	Lesser compliance requirements compared to companies	Separate ITR of partnership is filed, else there is no filing requirement	No compliances and no requirement to file a separate ITR
	Know More	Know More	Get Started	Know More	Know More

Frequently Asked Questions

Partnership Firm Registration

What are the minimum requirements to register a Partnership Firm?

For Private Company registration in India, following requirements must be fulfilled:
1. Minimum 2 directors shall be appointed, out of which one must be a resident of India.
2. Minimum 2 shareholders are required for this registration. Here, an individual may become shareholder and director at the same time.
3. A place of business in India must be provided as a registered office address.

What is the minimum Capital Requirement?

During the registration, a minimum of INR 1 Lakh should be provided as an authorized capital. A minimum paid-up capital requirement is eliminated as a part of Government’s initiative to simplify the business registration in India. However, each shareholder must subscribe at least 1 share for the registration to introduce the sufficient amount for running the business.

How to reserve the name of a company?

The name of a company should be formulated as mentioned above. The applicants can provide the maximum of 2 names with their preference order under RUN form. The applicant should comply with the provisions of the Act or regulations. The registrar may ask to re-submit the application with a different name if names do not fall under the criteria of uniqueness, relevancy or do not fulfill other requirements.

Who can become a Director of a Partnership Firm?

Any natural person above the age of 18 years can become the director in the company after procuring Director Identification Number (DIN). And since there are no specific criteria provided in terms of citizenship or residency, a foreign national can also become a director. The application of DIN Allotment is now merged with the application for the formation of a company subject to a limit of maximum 3 DIN.

What is the Director Identification Number (DIN)?

Director Identification Number is a unique number assigned by the Ministry of Corporate Affairs to Individuals on whose name the application is made, allowing an individual to be a Director in any Company or Designated Partner in an LLP.