Partnership Firm Registration

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Partnership Firm Services

Build your venture together with a robust and mutually governed structure.

A Partnership Firm is a popular business structure for ventures involving two or more people who agree to share the profits of a business carried on by all or any of them acting for all. Governed by the Indian Partnership Act, 1932, this structure is chosen for its ease of formation, flexibility, and shared management. Our service provides end-to-end guidance, from drafting the core Partnership Deed to obtaining the final registration certificate.

  • Minimum 2 partners, Maximum 50 partners.
  • Drafting and Execution of the Partnership Deed.
  • Acquisition of Firm PAN and TAN.
  • Expert guidance on Unlimited Liability implications.

This initial phase defines the operational rules of your partnership and establishes its legal nature, which is rooted in contract rather than corporate law.

The Governing Document: Partnership Deed

The Partnership Deed is the legal blueprint of your business. We draft this crucial document on non-judicial stamp paper, making sure it comprehensively covers all essential clauses to define the relationship between partners and prevent future disputes. Key clauses include:

  • Profit Sharing: The agreed-upon ratio for distributing profits and losses.

  • Capital & Drawings: Partner contributions and rules for withdrawing funds.

  • Administration: Management duties, salaries, and specific powers of each partner.

  • Exit Strategy: Clear procedures for the admission of new partners or the retirement of existing ones.

Crucial Legal Nature: Shared Unlimited Liability

It is vital to recognize that a Partnership Firm is not legally separate from its partners. This means the partners face unlimited liability, making them personally responsible—jointly and severally—for all business debts. Our consulting service ensures you fully grasp this risk before finalizing the partnership.

This stage focuses on establishing the firm's identity for the government and ensuring adherence to mandatory annual requirements.

Mandatory Tax Filings

The Partnership Firm is treated as a separate taxable entity. Our team manages your required tax processes:

  • Annual ITR Filing: The firm must file its Income Tax Return (ITR) annually using ITR-5 and is subject to tax at a flat rate.

  • Audit Requirements: We advise on and manage the necessary Tax Audit if your firm's turnover exceeds the statutory limits (e.g., $₹1$ Crore for business or $₹50$ Lakh for professionals).

  • GST Compliance: If required by your turnover or business activities, we handle the registration and timely filing of monthly/quarterly GST returns.

Benefits of Official Registration

While registration with the Registrar of Firms (RoF) is optional, we highly recommend it. An officially registered firm gains the critical ability to sue and be sued in the firm’s name to enforce contracts and legal rights against third parties or co-partners.

This final stage ensures the firm has all the necessary identifiers and infrastructure to commence commercial trading and manage its finances.

  • Firm PAN and TAN: We facilitate the prompt application for a dedicated Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) in the firm’s name.

  • RoF Application & Certificate: We handle the preparation and submission of the registration application and all supporting affidavits to the State’s Registrar of Firms (RoF), leading to the issuance of the official Certificate of Registration.

  • Bank Account Activation: We provide the required legal documentation (Deed, PAN, Certificate) to streamline the opening of a mandatory current bank account for all business transactions.