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Partnership Registration

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Rs. 4999

This package includes consultation, Partnership deed drafting, PAN and TAN registration, GST registration and current account opening assistance.


Rs. 6999

This package includes consultation, Partnership deed drafting, PAN and TAN registration, GST registration, Udyog Aadhar(MSME) registration, Shop & Establishment Registration, Professional Tax Registration and current account opening assistance.


Rs. 12999

This package includes consultation, Partnership deed drafting, PAN and TAN registration, GST registration, Udyog Aadhar(MSME) registration, Shop & Establishment Registration, Professional Tax Registration, current account opening assistance and ESI & PF Registration.


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Partnership Registration

A partnership is a form of business where two or more people share ownership, as well as the responsibility for managing the firm and the income or losses the business generates. Each member of such a group is known as a partner and collectively known as a partnership firm. These firms are governed by the Indian Partnership Act, 1932.

Its investments are low cost, easy to set up and required minimal compliance. All these features make it a very sensible business option for a small business.

Types of Partnerships

There are two types of Partnership Firms:

  • Unregistered Partnership Firm
  • Registered Partnership Firm

Unregistered Partnership Firm

It is neither mandatory to register the firm to start a business nor is there any penalty for noregistration. The firm can be registered once it is formed. The only drawback of the unregistered firm is that it does not get the benefits and rights under Section 69 of the Partnership Act. Consequences of non-registration of a firm are:

  • No suit in a civil court by the firm or other co-partners against any third party
  • No relief to partners for set-off of claim
  • An aggrieved partner cannot bring legal action against other partner or the firm
  • A third party can sue the firm

Therefore, it is always recommended to register the firm sooner or later to legalise it and get the above-mentioned rights.

Registered Partnership Firm

  • The firm can be registered at any time before the existence or during the continuance of the partnership.
  • Another instance where registration of the firm becomes compulsory is when the firm wishes to adopt a new form of organisation such as LLP or a company more easily.
  • The firm is registered when the registrar of firms is satisfied with the compliance of section 58 of the partnership act.

It is important to note that registration at the income tax department is still mandatory for both registered and unregistered firms by the registrar.

Difference between Partnership and LLP

Partnership
LLP
Liability
    • Partners are personally liable for the
      unlimited amount of liabilities of the
      partnership
    • The liability of the partners is limited to the amount invested in the company.
Compliance
    • No requirement of annual return filing.
    • Mandatory to file the annual return to Ministry of Corporate Affairs. You can get LLP Annual filing at just INR 3499/-.
Transferability
    • Shares can be transferred to another person after obtaining the required consent from all the Partners in a Partnership.
    • Transferability of the partnership is a long process.
    • Conversion of partnership to LLP or Private Limited Company is a challenging process.
    • Shares can be easily transferred to another person after obtaining the required consent from all the Partners in an LLP.
    • The transferee cannot become a partner automatically
    • LLP cannot be converted back to the partnership but can be converted to Private Limited Company or Limited Company effortlessly.
FDI
    • Foreign Direct Investment (FDI) is restricted in the partnership.
    • Foreign Direct Investment (FDI) is permitted in an LLP.
Partners
    • Minimum 2 partners
    • Maximum partners can be up to (20 in non-banking and 10 in banking firms)
    • NRI or Foreign Nationals are restricted to become partners in a partnership
    • Minimum 2 partners
    • Maximum partners can be unlimited in an LLP.
    • NRI or Foreign Nationals are permitted to become partners in an LLP.
Cost
    • Get Partnership Registration online for INR 5499/-
    • Get LLP Registration online for INR 7999/-

Documents Required for Partnership Firm Registration

  • Basic documents required to incorporate a Partnership Firm:
    • Identity & Address Proof of Each Partner:
      • Colour Photo with white background
      • PAN
      • Aadhar
      • Passport
      • Voter’s ID
      • Driving Licence
    • Documents to Start a Partnership:
      • Notarised Partnership Deed/Agreement
      • Proof of ownership if any partner owns the place of business
      • Rental agreement of the property where the business runs
      • Latest Bill of Electricity/Water/Property Tax
      • NOC from the Owner of Premises
  • Documents required to register a Partnership Firm:
    • Form 1 of the application for the partnership firm under the Partnership Act
    • Original copy of Partnership Deed document attested by all the partners
    • An Affidavit that declares the intention of becoming a Partner
    • Rental agreement of the property where the business runs

Advantages

  • Easy to Start and Manage:

    Formation of partnership is easy, even the registration of a firm is optional, therefore minimal legal formalities are required. It is also easy to manage to run the business.

  • Risk Bearing and Sharing:

    Business risks are borne and shared by all the partners together. This reduces the burden and stress on individual partners and performs their functions in a better way

  • Minimum Government Regulation:

    The operations of a partnership are regulated by government and law to the minimum extent. You have to comply with tax and labour laws, but otherwise, you are free from interference.

  • Easy Dissolution:

    Dissolution of the partnership firm is very easy. The partnership can be dissolved on the death, lunacy or insolvency of a partner. If the partnership is ‘at will’ then any partner can get the partnership firm dissolved by giving notice to other partners.

Disadvantages

  • Unlimited Liability:

    The partners of a firm have unlimited liability. If the business fails, the creditors can recover their dues not merely from the business assets, but also the personal assets of each partner.

  • Instability:

    A partnership will be dissolved on happening of various events. So, the existence of a partnership depends on the existence of partners. The partnership does not enjoy a long and continuous existence.

  • Non-Transferability of Share:

    A partner cannot transfer its share or interest as per the desire or on its own. Such a partner has to obtain the consent of other partners. This discourages investment in partnership firms.

  • Problematic Fundraising:

    In a partnership, Angel Investors, Venture Capitalists or Private Equity Firms need approval from RBI before investing, which makes the firm an unpreferred structure for fundraising. Even Banks don’t prefer to lend to Partnership Firms.

Standard Other Registrations or Licences We Provide

PAN Registration

A PAN or Permanent Account Number is an important document all taxpayers must possess, as mandated in the Income Tax Act of 1961.

Learn More
Trademark Registration

A trademark is a unique symbol or word(s) used to represent a business or its products. Once registered, that same symbol or series of words cannot be used by any other organisation, forever, as long as it remains in use and proper paperwork and fees are paid.

Learn More
Shops & Commercial Establishment Registration

Shop act registration is to be taken compulsorily to start business establishment. Details of personal employed are to be given on yearly basis.

Learn More
Professional Tax Registration

Professional Tax Registration is levied by Municipal Corporations of various states in India. People who carry the profession such as CA (Chartered Accountant), Lawyers, Doctors, Business Owners etc need to pay these taxes. The owner of a business is responsible to deduct professional tax from the salaries of its employees.

Learn More
Udyog Aadhar (MSME) Registration

MSME Registration helps you to receive payment on time from large companies as they have to pay MSME Vendor within 45 days. Plus, you get benefit at the time of taking a loan in form of concessional rate of interest.

Learn More
GST Registration

Any person or entity supplying goods or services in India above the aggregate turnover limit (INR 20L for Service and INR 40L for Goods) is mandatorily required to obtain GST registration. For certain businesses such as Interstate Supply, E-Commerce Operators registration under GST is mandatory irrespective of turnover limit.

Learn More
TAN Registration

The Tax Deduction and Collection Account Number (TAN) is required for people who are deducting or collecting tax at source. Anyone paying a salary or commission is required to get a TAN.

Learn More
FSSAI Registration

Every food business operator (FBO) involved in the manufacturing, processing, storage distribution and sale of food products must compulsorily obtain FSSAI Registration or License. FSSAI Registration is different from FSSAI License in the sense that depending on the size and nature of the business, FBO should obtain the necessary registration or license.

Learn More

Partnership Registration Process

  • 01
    Finalisation of Firm Name
  • 02
    Verification of Documents
  • 03
    Drafting Partnership Deed
  • 04
    Stamp Duty for Partnership Deed
  • 05
    Signing and Notary of Partnership Deed
  • 06
    PAN Registration for Partnership firm
  • 07
    GST Registration for Partnership firm

Proceed Now

Find the Perfect Price
for Partnership Registration
(All Taxes Inclusive, Transparent Pricing)

Plan feature

Basic

Plus

Pro
₹ 4999 ₹ 6999 ₹ 12999
Features
Consultation
Partnership Deed Draft
PAN and TAN
GST Registration
Current Account Assistance
Udyog Aadhar (MSME) Registration, if applicable
Shop & Establishment Registration, if not factory
Professional Tax Registration, if applicable
ESI & PF Registration
 


Disclaimer:
    • ESI applicable on minimum 10 employees and whereas PF on 20 employees. PF can be opted under voluntary scheme even if the employees are less than 20.

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