Partnership Firm Registration India

Partnership Firm Registration India is when persons come along together to start a business together.

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Partnership Firm Registration India

Partnership firm represents a business entity that is formed with a purpose of making a profit from the business. Two or more parties come together with a formal agreement to own and manage the business. The risk and responsibilities are shared amongst the partners that shred the burden of an individual partner. Also, when two comes together, more capital and expertise are combined that helps to reach the business goals easily.

Partnership Act, 1932 defines the structure of a Partnership firm by providing all the necessary provisions to run the same. The Act validates both unregistered and registered partnership firms India. However, an unregistered partnership has few shortcomings that attract partners towards Partnership Firm Registration. But, one can overcome it by partnership registration firm online anytime after it is formed.

Benefits of LLP Registration

Shared Responsibilities

The word Partnership itself describes individuals coming together for some common business object. The partners share the responsibility to work and manage the business together. Responsibilities for a particular field or task can be assigned to one or more partners by indicating the same in a Partnership Deed.

Operating Flexibility

A Partnership firm registration is operated on the basis of the Partnership deed executed by the partners, mutually. The partners can decide how to operate the business with their mutual consent. Also, the Partnership Deed can be changed according to the requirement even after partnership deed registration is completed. There are no limitations or restrictions on the partners in regards to running the business, as long as it is covered under the signed agreement.

Pre-defined Object or Period

At the time of Partnership firm registration, the deed enumerates the pre-defined business objectives and activities, which is the main aim to commence business. A partnership can be formed within a specified period or to complete a specific project or object. Once the same is completed, the partnership will automatically stand dissolved.

Various Financial Returns to the Partners

Partners involved with the firm get various types of returns for their capital as well as their individual efforts. The working partner also receives remuneration in addition to the interest on capital and share of profit, as may be agreed by the partners. Also, the share of profit from partnership firm is exempt for the partner receiving it.

Pan Card

PAN Card of all partners
Foreign nationals may provide passport

Address Proof

Aadhar Card/ Voter ID/ Passport/ Driving License of all partners

Business Address Proof

Utility Bill (Electricity Bill) of the place of business

Rent Agreement

Rent Agreement and NOC from the owner of the place of business, if rented

Documents Required for Partnership Registration India

In India, llp registration cannot be done without proper identity and address proof. These documents will be needed for all the partners of the company to be incorporated. Listed below are the documents that are accepted by MCA for the llp registration process acceptable.

Form No. 1 (Application for registration under Partnership Act)
Original copy of Partnership Deed, signed by all partners
Affidavit declaring intention to become partner
Rental or lease agreement of the property/campus on which the business is set

Partnership Firm Registration Process

At Bharat Register, we can help you in Partnership Firm Registration anywhere in India in less than seven working days. At the beginning of the engagement, an Advisor from Bharat Register will brief you about the process and provide you with a list of documents required for registration of partnership firm. You can submit the information and documents required through our mobile app or website. Once, the documents and information are verified, a partnership deed will be drafted and sent to the Partners. All the Partners must sign the document on stamp paper and upload a copy on the platform. Once, the signed partnership deed is available; it is registered with the concerned Registrar of Firms and Certificate of Registration of Partnership Firm is provided. In addition to delivering the Certificate of Registration of Partnership Firm, we can also help you open a Bank Current Account in the name of the partnership firm through ICICI or DBS Bank.

Make Application in 3 Easy Steps

1. Answer Quick Questions

Pick a Package that best fits your requirements
Fill in our questionnaires that take less than 10 minutes
Provide basic details & documents required for registration
Make payment through secured payment gateways

2. Relax While Team of Experts Get It All Done

Assigned Relationship Manager
Drafting a Partnership Deed
Payment of Stamp Duty on Deed
Notary of Partnership Deed
Application for PAN and TAN

3. Establishing a Partnership Firm

All it takes is 12 working days

It is not compulsory. But registration proves the legality to the existence of the firm.

Partnership Firm Registration does not require any minimum amount. It can be started with any amount of capital contribution by the partners. The Partners can contribute in any amount agreed and in any form being tangible (cash, premise) or intangible (goodwill, intellectual property). The Partners can introduce capital in any ratio, equal or uneven.

Due to non-registration, the firm cannot file suit against any partner or the third party. A partner also cannot sue the partnership firm for his claim. However, the third parties can sue the firm to enforce their dues or claims. Non-registration does not affect the rights of third parties. Also, the partnership can be registered any time after formation to remove the said effects.

Only a registered partnership firm can claim a set off (i.e. mutual adjustment of debts owned by the disputant parties to one another) or other proceedings in a dispute with a third party. Hence, it is advisable for partnership firms to get it registered sooner or later. Also, only a registered partnership firm can file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act. An unregistered Partnership Firm can get registered at any point of time after its establishment.

The Partnership Act does not prohibit a non-citizen from joining an Indian partnership firm, subject to necessary clearances and permissions from satisfactory authorities in this regard.

There are no such guidelines on minimum capital by partners. It is not necessary for each partner to contribute equally to the capital. The contribution is based on the agreement between the parties.

Yes, partners may be partners in another firm in their individual capacity.

Compare and know which Company type suits you:

Managing Your Business

Private Limited Company

Limited Liability Partnership

One Person Company

Partnership Firm

Proprietorship Firm

Governing Act

Companies Act, 2013

Limited Liability Partnership Act, 2008

Companies Act, 2013

Indian Partnership Act, 1932

No specified Act

Registration Requirement

Registration under Companies Act is mandatory

Registration under LLP Act is mandatory

Registration under Companies Act is mandatory

Optional

There is no registration criteria prescribed. But, registration is recommended

Number of members

2 - 200

2 - Unlimited

Only 1

2 - 50

Only 1

Separate Legal Entity

It is a separate entity and can own assets in its name

Proprietor and business are considered the same

Liability Protection

Limited up to the total value of shares subscribed

Limited up to the value of shares subscribed

Limited up to the total value of shares subscribed

Partners are jointly and severally liable to pay the debts of the Partnership Firm

Proprietor’s liability is to pay-off all the debts and obligation of the firm

Statutory Audit

Auditor must be appointed within the 30 days of incorporation

Applicable when turnover exceeds INR 40 Lakh or contribution exceeds INR 25 Lakh

Auditor must be appointed within the 30 days of incorporation

Statutory audit not applicable. Tax audit may be applicable based on turnover

Ownership Transferability

Shares can be transferred with the consent of other Shareholders

Ownership can be changed with consent of other partners

Shares are not transferable easily

Ownership is not transferable easily, clause of partnership deed should be referred

Firm is no different from proprietor and so ownership is not transferable

Uninterrupted Existence

Perpetual existence as the management and owners are different. Ownership is easily transferable

Change in Partners or Designated Partners does not affect the existence of LLP

Perpetual existence. The nominee will take place of member

Change in partner leads to dissolution or formation of another partnership firm

Death or insolvency of proprietor directly affects the firm

Foreign Participation

Foreign national are allowed to invest under the Automatic Route

Foreign nationals are allowed, subject to FDI Guidelines

Member, nominee and director must be an Indian resident

Foreign nationals are not allowed to be a partner

Foreign Nationals cannot commence proprietorship business

Tax Rates

Tax rate applicable for small companies is reduced to 22%, dividend distribution tax applicable

With tax rate of 30% on business profit, no tax on income distribution to partners

Tax rate applicable for small companies is reduced to 22%, dividend distribution tax applicable

With tax rate of 30% on business profit, no tax on income distribution to partners

Tax rates of individual applied to Proprietorship Firm

Statutory Compliances

Companies have to meet high compliance requirements

Lesser compliance requirements compared to companies

Separate ITR of partnership is filed, else there is no filing requirement

With tax rate of 30% on business profit, no tax on income distribution to partners

No compliances and no requirement to file a separate ITR

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Here's How it Works

1. Fill Form

Simply fill the above form to get started.

2. Call to discuss

Our startup expert will connect with you & prepare documents.

3. Get Certificate

Get your company incorporation certificate

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