Updated on September 02, 2022 04:33:56 PM
Partnership firm is one of the most popular forms of entity incorporation where two or more people form a business together and share the profits and losses. The registration of partnership is not mandatory but it is highly risky and not recommended by the department and professional experts. This kind of business registration is most suitable for small and medium size businesses as it is easy and economical to manage. Read to know the benefits, process, documents required and fees of partnership firm registration.
Partnership Deed [Sample]
Partnership firm is a business entity registered under the Partnership Act, 1932 where two or more people join together as partners for running & managing a business while sharing the profits and losses in an agreed ratio. Partnership firms can only be registered when the partnership deed is signed and accepted by all the partners of the firm.
Partnership deed is an agreement between the partners in which all the terms and conditions related to business are incorporated. Some of the major terms and conditions mentioned in the deed of a partnership are:
Registering and maintaining a partnership firm does not require involvement of Digital Signature Certificate and Designated Partner Identification number which makes it more economical than other forms of businesses.
Partnership can be registered only with a partnership deed and PAN Card of the firm. Hence, it is easy to start and exit.
Foremost step to incorporate a partnership is preparing a partnership deed which needs to be agreed and signed by all the partners of the firm. It is the most important step of partnership registration as all the necessary terms and conditions are mentioned in this agreement.
Once the partnership deed is registered, PAN card application has to be made with the Income Tax Department. It takes around 3-7 working days for registration under the Income Tax Department and issuance of physical PAN Card.
Depending upon the requirement of the business and GST Law, application for GST registration has to be made with the Department. GST registration usually takes 5-10 working days.
Once all the steps are completed, the current bank account should be opened by the partnership firm. Single partner or all the partners can act as an authorized signatory for opening and managing the bank account.
The process of registering your business as a partnership firm is not much complicated. Our experts at Professional Utilities can simplify the whole registration process for you. Register your company online in 3 easy steps:
Minimum two partners
Partners should be the citizens of India
Address proof of business office
1. Copy of Aadhar & PAN Card
2. partnership Agreement/Deed
3. Address proof of office
The total cost of registering a Partnership Firm in India, including government and professional fees, is ₹2,499 Only and takes around 10-14 working days subject to document verification by the concerned authorities.
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It takes around 10-14 working days to register a partnership.
Yes, your registration can be cancelled. You’ll have to dissolute the firm for cancellation of partnership registration.
A partnership could be registered by registering a partnership agreement or deed where all the terms and conditions would be incorporated.
As per the Partnership Act, 1932, it is required to submit a copy of PAN card of all partners and address proof of office for partnership registration.
Note: You can use your residential address as address proof of office.
It would cost around Rs. 1,999 (including govt and professional fee) for registering a partnership firm in India.
Basically there are two types of partnership deeds - one is registered and the other one is not registered. Registered partnership is incorporated from the office of registrar where no notarisation is required. In case of unregistered partnership, notary is mandatory.