Partnership Firm Registration
What is a Partnership Firm?
A Partnership Firm is one of the most traditional and simplest forms of business structure in India, where two or more people join hands to run a business and share profits in an agreed ratio. It is governed by the Indian Partnership Act, 1932 and is best suited for small businesses, local enterprises, and professional groups.
Key Features of Partnership Firm
- Easy to Form – Requires minimal compliance and cost.
- Shared Responsibilities – Partners divide duties and decision-making.
- Profit Sharing – Profits and losses are shared as per the agreement.
- Flexibility – Partners can decide rules under a mutual partnership deed.
- No Mandatory Audit – Unlike companies, audits are not compulsory unless turnover crosses limits.
Process of Partnership Firm Registration
- Drafting Partnership Deed – Prepare the agreement with rights & duties.
- Stamp Duty & Notarization – Execute deed on stamp paper.
- Application to Registrar of Firms (ROF) – Submit required documents.
- Certificate of Registration – ROF issues the certificate (if registered).
- Apply for PAN & TAN – For taxation and TDS compliance.
Documents Required
| For Partners |
For Firm |
| PAN Card |
Partnership Deed (signed & notarized) |
| Aadhaar / Voter ID / Passport |
Proof of Registered Office (Rent Agreement, Electricity Bill, NOC) |
| Passport Size Photo |
Application Form (as per ROF) |
| Address Proof |
PAN Card of Partnership Firm |
Types of Partnership Firms
| Type |
Description |
| Registered Partnership |
Officially registered with the Registrar of Firms; offers legal benefits like suing third parties. |
| Unregistered Partnership |
Not registered with ROF; valid but lacks certain legal advantages. |
Compliance After Registration
- File Income Tax Returns every year.
- Deduct and deposit TDS if applicable.
- Maintain books of accounts & records.
- GST registration & filing (if turnover exceeds threshold).
Who Should Opt for Partnership Firm?
- Small business owners looking for shared investment & risk.
- Family-run businesses and local enterprises.
- Professionals like consultants, traders, service providers.
- Startups testing their business idea with low compliance.
