Partnership Firm Registration in India

The law governing partnership firms in India is the Indian Partnership Act, 1932. A partnership firm is formed when two or more individuals come together to carry on a business under a mutual agreement. The terms of the partnership—such as duties, responsibilities, profit-sharing ratios, and roles of partners—are laid down in a legally binding Partnership Deed.

Profits earned are distributed among the partners as per the deed, while in case of losses, each partner is personally liable. Unlike companies, a partnership firm is relatively easy to establish and manage, but the liability of partners remains unlimited.

Documents Required for Partnership Firm Registration

• Statement in Form 1 with prescribed fees.
• Notarized true copy of the Partnership Deed, mentioning:
• Name of the firm
• Nature of the business
• Principal place of business
• Details of branch offices (if any)
• Date of admission of each partner
• Names and permanent addresses of all partners
• Duration of the partnership (if applicable)
• Proof of ownership / Rent or Lease Agreement of business premises
• Copy of PAN Card of all partners
• Copy of Aadhaar Card / Voter ID / Driving License / Passport of partners
• Application signed by all partners and verified through an affidavit

Partnership Deed

Although a partnership deed can be oral, it is highly recommended to draft a written partnership deed on judicial stamp paper, signed by all partners. This prevents disputes and clearly defines rights, obligations, and profit-sharing arrangements.

Key Documents for Drafting the Partnership Deed

• PAN Card of Partners – mandatory for identity verification.
• Address Proof of Partners – Aadhaar, Passport, Driving License, or Voter ID.
• PAN Card of Firm – obtained by filing Form 49A (can also be filed online with DSC).
• Address Proof of Firm:
• If rented: Rent Agreement + Utility Bill + NOC from landlord
• If owned: Utility Bill + NOC from the owner

Additional Registrations & Requirements

• GST Registration – Required if turnover exceeds threshold or for interstate business.
• Bank Account Opening – Requires:
  • Partnership Deed
  • PAN of the firm
  • Address proof of firm & partners
  • Partnership Registration Certificate (if registered)
  • Utility bills (not older than 3 months)
  • Authorization letter for a partner as authorized signatory
• Affidavit – Confirming authenticity of documents and deed.

Online Partnership Firm Registration Process

1. Name Selection: Choose a unique name not already registered. Avoid prohibited words. Trademark registration is advisable to protect the brand.
2. Drafting Partnership Deed: Include firm details, partner details, nature of business, duration, capital contribution, and profit-sharing ratio.
3. Execution of Deed: Print on appropriate stamp paper, notarize it, and get it signed by all partners. Stamp duty varies by state.
4. PAN Application: Obtain a PAN in the firm’s name.
5. Filing Application: Submit details of firm, partners, contributions, and business address. Each partner must sign and notarize the application.
6. Submission to Registrar: File application with the Registrar of Firms, along with supporting documents.
7. Payment of Fees & Stamp Duty: Fees vary depending on the state of registration.
8. Issue of Registration Certificate: Upon verification, the Registrar issues a Certificate of Registration, granting the firm legal recognition.

With proper registration, a Partnership Firm in India gains credibility, legal protection, and ease in opening bank accounts, applying for loans, and obtaining GST or other statutory registrations.

Taxation Point India assists entrepreneurs in registering their Partnership Firms by providing expert guidance on Partnership Deeds, GST, and legal compliance, ensuring smooth and hassle-free business operations.