Partnership Firm Registration
Rs. 4947/-
Partnership Firm Registration including Stamp Paper *
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Partnership Firm Registration
Partnership Firm is one of the most famous types of businesses in India. When two or more persons enter into a Partnership agreement, the entity which comes into existence is called Partnership Firm and the persons entering into Partnership acre called Partners. Partnership firm is owned, controlled and managed by Partners of the Partnership Firm. Starting a Partnership Firm is easier as compared to a Company or LLP. The Partnership Firms does not have perpetual succession and this form of is generally prevalent in small and medium sized businesses or unorganized sectors. Since the introduction of concept of Limited Liability Partnership, more and more businesses are opting the LLP options than a Partnership Firm because of added advantages offered by LLP.
Partnership Firm can be simply created by entering into a Partnership Deed by the Partners of the firm. It’s not compulsory to register a Partnership Firm. However it is always advisable to register a Partnership Firm as there are many benefits given to a registered Partnership over an unregistered Partnership Firm. The businesses transacting with a Partnership Firm must be aware of the structure of the firm. The Partnership documents are treated as public documents on its registration and the people dealing with the Firm are said to have constructive notice of the constitution of firm.
How much does it cost to register a Partnership Firm in India?
Our Packages
Regular
Partnership Firm
- Partnership Deed drafting
- PAN Application for Partnership
- Includes Stamp Paper of Rs. 500/-
- Partnership Firm formation master file
- (Detailed proposal will be sent by email)
Silver
Partnership Firm with GST Registration
- Partnership Deed drafting
- PAN Application for Partnership
- Includes Stamp Paper of Rs. 500/-
- Partnership Firm formation master file
- GST Registration
- Udyam/MSME Registration
- (Detailed proposal will be sent by email)
Gold
Partnership Firm, GST Registration and ROF Registration
- Partnership Deed drafting
- PAN Application for Partnership
- Includes Stamp Paper of Rs. 500/-
- Partnership Firm Registration with ROF Maharashtra
- Partnership Firm formation master file
- GST Registration
- Udyam/MSME Registration
- (Detailed proposal will be sent by email)
Documents required to register a Partnership Firm
The document requirement for starting a Partnership Firm includes proof of identity and address of Partners and proof of address of the Registered Office of the firm.
Identity and Address proof of the Partners
- PAN Card and Adhaar Card (Mandatory)
- Passport
- Driving License
- Voters I’d
Proof of address of the registered office of the firm
- If the Registered Office premises is owned by Partner(s), copy of sale deed
- Rental agreement if the office premises is rented
- Copy of latest electricity bill in the name of owner
- NOC from the owner
Advantages of Partnership Firm
- Easy Formation:
Formation of Partnership Firm is easy and not much legal formalities are involved in formation. Registration of Partnership Firm is not compulsory. So a Partnership Firm can start its business immediately after entering into Partnership Deed. However, registration of a Partnership Firm is always advisable as there are many add on benefits given to a Registered Partnership firm.
- Name Selection:
Name of a Partnership Firm is not registered. Partners are free to select any name of their choice for the firm. However, partners should be always be very careful make sure that the chosen name does not infringe any trademark or copyright of third person. It is also advised to get trademark of the name chosen for a Partnership Firm, otherwise some other person may also use the same name for his company.
- No Annual Returns:
The Registrar of Firms does not require the Partnership Firms to file Annual Returns like the Ministry of Corporate Affairs in case of Companies or Limited Liability Partnerships. As the annual compliances are lesser, it reduces efforts and cost for the Partnership Firm.
- No Statutory Audit:
A Partnership Firm is not required to file Audited financial statements with the Registrar of Firms. Therefore a Partnership Firm is not required to get its books of accounts audited. However, it might be necessary as per the provisions of Income Tax Act, to do Tax Audit if turnover exceeds prescribed limits.
- Compliances and Regulations:
The annual and event based compliances and regulations to run business are considerably less in case of a Partnership Firm as compared to Company or LLP.
- Winding up:
Winding up of a Partnership Firm can be done by simply entering into a dissolution deed. There are very less legal processes for winding up a Partnership Firm as compared to a Company.
Frequently Asked Questions
Minimum 2 persons are required to form a Partnership Firm.
Yes, the maximum number of Partners in a Partnership Firm can be 20.
Any Indian Citizen who is residing in India can become a Partner in Partnership Firm. A person who is Nonresident Indian or of Indian origin may also become a partner in a Partnership Firm after taking approval from RBI. The investment amount of NRIs or persons of Indian origin is not repartiable and there are certain restrictions on nature of business as well.
All the partners of a Partnership firm should have a PAN Card, address proof and identity proof. Ofin can draft a Partnership Deed which may be signed by all the partners in the firm.
There is no prescribed limit of minimum capital requirement in case of a Partnership Firm. The Partners may decide between themselves the capital requirement and introduce capital as per their mutual understanding.
Business Adviser from Ofin will talk to you and understand your requirements like nature of business, number of partners, place of business etc. Based on the information provided by you Ofin team will guide you and prepare a Partnership Deed for you. Ofin team will register your Partnership Firm with the Registrar of Firms (only in Maharashtra) if required. Ofin team will also help you to get PAN Card of your firm and complete other registration and licensing formalities.
Partnership Deeds are registered by the Registrar of Firms under the Indian Partnership Act, 1932.
No, registration of a Partnership Firm is not compulsory. A registered Partnership Firm can enjoy benefits over unregistered Partnership Firm. Therefore it is always advised to register a Partnership Firm.
A Partnership Firm can file a suit against a third party only if it is registered. In case of any disputes among the partners, partners of a registered Partnership Firm only can file a suit against firm or partners.
You can open bank account of a Partnership Firm by producing Deed of Partnership and PAN Card of Partnership Firm alongwith the address proof and identity proofs (KYC documents) of the Partners.
No, Partnership Firm is not a separate legal entity. In the eyes of law, the Partners and Partnership Firm are one and the same.
The partners of a Partnership Firm are jointly and severally liable for all the liabilities of the firm. This means that if the assets of a Partnership Firm are not sufficient to meet its debts, it can be recovered through personal properties of the Partners.
Partnership Firms are registered with the Registrar of Firms and the Registrar issued certificate of registration of firm. However, an unregistered Partnership Firm does not get a certificate of registration.
As per India Partnership Act, 1932 there are some restrictions on transfer of share in Partnership Firm. A partner cannot transfer his share in the Partnership Firm to any third person without consent of other partners.
As per Indian Partnership Act, 1932, it is not required to file any annual returns or other compliances with the Registrar of Firms. However, depending on the nature and size of business, a Partnership Firm has to file periodic returns such as Income Tax, GST, PF/ESIC etc.
Yes, you can convert your existing Partnership Firm to LLP or Private Limited Company. There is a time consuming and expensive procedure for conversion of a Partnership Firm to a Private Limited or LLP. It is advisable for new business to incorporate LLP or a Private Limited at start itself.
Audit of books of accounts is not necessary for a Partnership Firm as per Indian Partnership Act, 1932. Provisions of Income Tax Act / GST may require a Partnership Firm to audit its books of account.
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