Online Partnership Firm Registration
Start your business with partners you trust. We make the registration process fast, simple, and compliant.
₹4,999
Starting Price
5-7 Days
Completion Time
2-20
Partners Allowed
Included
Partnership Deed
What is a Partnership Firm?
A Partnership Firm is a business structure where two or more individuals agree to share the profits of a business. It is governed by the Indian Partnership Act, 1932. This structure is ideal for small and medium-sized businesses, combining the skills and capital of multiple individuals while being relatively easy to set up and manage compared to a company.
Key Advantages of a Partnership
Shared Resources
Pool capital, skills, and resources from multiple partners.
Easier Decision Making
More flexible decision-making process compared to companies.
Simple to Form
Relatively easy and inexpensive to establish with a partnership deed.
Tax Flexibility
Profits are taxed in the hands of the firm, and partner salaries are deductible.
The Importance of a Partnership Deed
A Partnership Deed is a crucial legal document that outlines the rights, duties, profit-sharing ratios, and other rules governing the relationship between partners. A well-drafted deed prevents future conflicts and ensures smooth business operations.
Key Clauses in a Partnership Deed:
- Names and addresses of the firm and its partners
- Nature and objectives of the business
- Capital contribution by each partner
- Profit and loss sharing ratio
- Rules for admission, retirement, or death of a partner
- Dispute resolution mechanism
Documents Required for Partnership
Ensure you have these documents ready for a smooth registration process.
PAN Cards of Partners
Address Proof of Partners
Proof of Business Address
Draft Partnership Deed
Frequently Asked Questions
Is it mandatory to register a partnership firm?
While it is not mandatory to register a general partnership firm, it is highly advisable. An unregistered firm cannot sue third parties, and partners cannot sue each other for rights arising from the contract.
What is the minimum and maximum number of partners?
A partnership firm requires a minimum of 2 partners. The maximum number of partners is generally 50, as per the Companies (Miscellaneous) Rules, 2014.
Are partners personally liable for the firm's debts?
Yes, in a general partnership, partners have unlimited liability, meaning their personal assets can be used to pay off the firm's debts. For limited liability, you should consider an LLP.
How are profits taxed in a partnership firm?
The firm itself is taxed at a flat rate of 30% on its profits. The profits distributed to partners are then exempt from tax in the hands of the partners.