Partnership Firm Registration in India - Procedure, Fees, Documents Required
Updated on November 25, 2021 01:28:48 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 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.
Note: It is not mandatory to register a partnership but it is very risky and is not recommended by any professional experts.
What is a Partnership deed?
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:
Details of the firm and partners
Profit and Loss sharing ratio among the partners
Nature, commencement and duration of partnership firm
Salary and commision of partners
Interest on capital and loan
Provisions related to capital introduction and capital withdrawal
Accounting and Auditing
Banking and Voting rights
Conditions for admission, resignation and retirement of partners
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.
Step 2. Registration under Income Tax and Issuance of PAN
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.
Step 3. GST registration
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.
Step 4. Bank Account Opening
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.
Online Partnership registration in India with Professional Utilities
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:
Step 2: Provide all the required documents for registration of the firm and make 50% payment in advance.
Step 3: Your partnership deed and other included documents will be delivered to you and you'll have to make the balance payment.
Minimum requirements for Partnership registration
Minimum two partners
Partners should be the citizens of India
Address proof of business office
Documents required for Partnership firm registration
Copy of Aadhar and PAN Card of partners
Address proof of office
Documents you’ll get after partnership registration
PAN Card of firm
GST registration certificate (if required)
Shop and Establishment Act License (if required)
Partnership Firm Registration Fees
The total cost of registering a Partnership Firm, including government and professional fees, would be ₹2,499 Only. On average, it takes around 10-14 working days for registration of Partnership Firms in India subject to document verification by the concerned authorities.
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Frequently Asked Questions (FAQs)
How much time does it take to register a partnership?
It takes around 10-14 working days to register a partnership.
Can my certificate of registration be cancelled?
Yes, your registration can be cancelled. You’ll have to dissolute the firm for cancellation of partnership registration.
How is a partnership registered?
A partnership could be registered by registering a partnership agreement or deed where all the terms and conditions would be incorporated.
What are the documents required for partnership registration?
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.
How much does it cost to register a partnership firm in India?
It would cost around Rs. 1,999 (including govt and professional fee) for registering a partnership firm in India.
Is notary compulsory for partnership deeds?
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.