Doc Summary
Overview
A Partnership Firm is a traditional and widely used business structure in India where two or more individuals come together to carry on a business with a shared goal of profit. It is governed by the Indian Partnership Act, 1932, and operates based on a Partnership Deed, which outlines the rights, duties, and profit-sharing ratios of partners.
This form is ideal for small and medium-sized businesses that prefer flexibility and collective management over complex corporate structures.
Eligibility / Who Should Apply
- Two or more individuals planning to start a business together
- Small and medium enterprises seeking shared ownership and management
- Professionals or traders wanting a simple and cost-effective structure
- Businesses looking for partnership-based operations with mutual trust
Key Features
- Minimum 2 partners, maximum 20 partners
- Governed by a Partnership Deed registered under state jurisdiction
- No minimum capital requirement
- Shared profits, losses, and decision-making powers
- Easy to form, manage, and dissolve compared to incorporated entities
Step-by-Step Process
- Draft the Partnership Deed: Include details such as firm name, business activity, capital contribution, profit-sharing ratio, and duties of each partner.
- Get Deed Notarized: Execute the Partnership Deed on stamp paper and get it notarized.
- Register the Firm (Optional but Recommended):
- File the application with the Registrar of Firms in your state.
- Submit required documents including identity proofs and deed.
- Apply for PAN and TAN: Obtain PAN for the partnership firm from the Income Tax Department.
- Obtain Additional Registrations:
- GST Registration (if turnover exceeds the threshold).
- Shop and Establishment License (if applicable).
- Udyam (MSME) Registration for government recognition and benefits.
Documents Required
- Partnership Deed (signed and notarized)
- PAN and Aadhaar of all partners
- Passport-size photos of partners
- Proof of business address (Rent Agreement / NOC / Ownership Proof)
- Utility bill (electricity or water) for verification
- Registration application (if opting for registered partnership)
Timeline
The entire registration process usually takes 5–10 working days, depending on the state’s Registrar office processing time.
Post-Registration Requirements
- Open a bank account in the firm’s name using the Partnership Deed
- File Income Tax Returns (ITR) annually in the firm’s name
- Maintain proper accounting records and financial statements
- Renew or update GST and other licenses as applicable
Penalties for Non-Compliance
- Operating without registration may restrict the firm’s right to enforce contracts in court
- Failure to file tax returns or maintain records may lead to penalties
- Non-compliance with state licensing requirements may attract fines
Kanoons Service
Kanoons Law & Tax Consultants Pvt. Ltd. offers reliable Partnership Firm Registration services to help business partners start and operate legally.
Our services include:
- Drafting and notarization of Partnership Deed
- Filing with the Registrar of Firms for registration
- Assistance in PAN, TAN, GST, and MSME registration
- Support for opening a firm bank account and compliance setup
- Ongoing guidance for renewals and modifications
Kanoons ensures a simple, fast, and legally compliant partnership registration for entrepreneurs and business partners across India.
Why Choose Kanoons
- Quick and paperless registration process
- Customized deed drafting based on partner requirements
- Transparent and affordable pricing
- End-to-end assistance from registration to licensing
- Trusted by partnership firms in trade, services, and professional sectors
