Partnership Firm
Registration Online in India

Get your Partnership Firm Registration online in just 10 days

A Partnership Firm is a type of organization you can set up to run your business. As such they need to be registered with the Ministry of Corporate Affairs (MCA) and are subject to relevant Rules and Regulations

Register your company at just ₹3,000, in India

(govt fees + tax extra)

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Steps for registering a Sole Proprietorship

Step 01

Prerequisites & Document Preparation

Gathering the KYC documents required for registering your business.

Step 02

Application for Registration

An application for Registration of Partnership firm to be send to the Registrar Of Firms

Step 03

Partnership Deed

A duly signed copy of the partnership deed must be filed with the Registrar.

Step 04

Filing MOA & AOA

Deposit the required fees and stamp duties with the concerned authorities. MOA & AOA

Step 05

Certificate of Incorporation

Issuance of Certificate of Incorporation by the registrar on approval of the application form.

What is a Partnership Firm

A Partnership is an arrangement where parties, known as partners, agree to cooperate, to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest based organizations, schools, government or combinations. Organizations may partner together to increase the likelihood of each achieving their mission and to amplify their reach. A partnership may result in issuing and holding equity or may be only governed by a contract.

Importance Of Registration

Why registration as a partnership firm ?

If you are planning to start a new business, you have to first create a business entity which is legitimate in the eyes of the law. The type of business entity you choose will totally depend on various factors that include the size of the business, number of stakeholders, compliance costs and effort and acceptability in targeted markets.

Benefits of getting the Partnership Firm registered

Power to file suit against third Parties:

The partners of the registered Partnership Firm can file a case /suit against third parties for resolution of disputes arising during the course of business or any other matters relating to the Partnership Firm.

The partners of an unregistered firm cannot enforce any clause of the partnership deed in case of any third party disputes.
Power to file suit against co-partners:

The partners of the registered partnership firm can file a case /suit against co-partners for resolution of any disputes arising between them.

The partners of an unregistered firm cannot enforce any clause of the partnership deed in case of disputes arising between co-partners.
Power to claim Set-off:

The registration of partnership firms enables the partners with power to claim set-off. When any third party files a suit against the Partnership Firm, the Partnership Firm can claim the set-off, if any against the claim of the third Party.

The said power to claim set-off is not available when the partnership firm is not yet registered under the Indian Partnership Act, 1932.
iv) Higher Credibility:

A partnership firm which has completed the procedure of Online Registration of Partnership Firm enjoys higher credibility.

Although both registered and unregistered Partnership Firms are legal and valid under the given Act, the Registered Firm is highly preferred by authorities over unregistered one.
v) Conversion of Entity:

Conversion of a registered partnership firm is easier when compared to an unregistered firm . The conversion of the Partnership Firm into any other entity such as Private Company or LLP i.e. into a corporate structure can be easily completed in case of registered partnership firms.

Registration Conditions

How to Register your Partnership Firm?

Under the Indian Partnership Act 1932, a firm may be registered at any time by filling in an application with the Registrar of Firms. While the registration has its advantages, it is not compulsory for the parties to get a firm registered.

The maximum number of partners in a partnership firm holds a limit of 20. Partnership is a convenient entity to form when more than one business partner plans to come together for business purposes. However, similar to a Proprietorship, as a partner, you will remain personally liable for the company, unless it is a Limited Liability Partnership.

A Partnership deed is the primary document required for a Partnership firm, and its submission is compulsory for registration of the firm. Depending on the size and type of business, Partnership firms need to comply with a few regulations such as GST, TDS, ESI, PF norms, and others. Partnership firms will also have to undergo income tax assessment and audits.

Incorporation Process

Steps to Incorporate a Partnership Firm

Step 1: An application for Registration of Partnership firm to be send to the Registrar Of Firms
Step 2: A duly signed copy of the partnership deed must be filed with the Registrar.
Step 3: Deposit the required fees and stamp duties with the concerned authorities.
Step 4: Issuance of Certificate of Incorporation by the registrar on approval of the application form.

Documents Required

Documents Required For Partnership Firm Registration

You need to have the following set of documents before proceeding for firm registration:

Self attested PAN card copy of proposed Partners
Self attested Address Proof of Proposed Partners (Passport or Driving Licence or Voters ID or Aadhar Card)
Address proof of the proposed Registered Office (electricity bill or property tax receipt and rental agreement and It can be a residential property)
No Objection (NOC) from the person who owns the property leased out to the firm.
2 passport size photos of proposed partners
Main objects of the proposed partnership firm.
Proposed partnership firm name.
Capital and shareholding pattern of partners.
Profit and loss sharing ratio among the partners.
Duration of the partnership firm.
Date of proposed Commencement of business of the partnership firm.
Name of Managing Partner in the firm, if any.

Compare your options before incorporation of company

An introduction about a business or start up formation option is vital for deciding the right form of business registration. The Companies Act, 2013 and Limited Liability Partnership Act, 2008 have brought about more business formation choices for entrepreneurs.

The key factors that influence the legal form of a business are, the nature of your business, customer's profile (corporate, small businesses or individuals ), expected business turnover, scalability of your business idea, and future funding prospectus.

Every entrepreneur/promoter should take the effort to know about the pros and cons of these legal forms for new company registration so as to choose the best for your Company.

We at Targolegal also offer Private Firm, LLP, OPC registrations, and many more services that may suit your registration requirements.

Feel free to contact us for details regarding Partnership Registration Cost, and to know more about, how to register a company.

Private Limited Company Limited Liability Partnership Partnership One Person Company (OPC) Sole Proprietorship

Do I need a Registration?	Yes, Ministry of Corporate Affairs registers Private limited company under the Companies Act, 2013
What type of business names can I keep?	Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLPs or companies
How risky is it for me?	Private Limited Company is a separate legal person in the eyes of law, registered under Companies Act 2013. So, the shareholders are not responsible for business liabilities.
To what extent is each member of the business liable?	Liability is limited to his/her share capital contribution.
Tell me the minimum membership limit	2 People
Is foreign ownership allowed?	Yes
How much will I get taxed	Profits get taxed at 25% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
What are my annual tax filing norms?	Every financial year Private Limited Company must file Annual Accounts and Annual Return with the Registrar of Companies. Plus, Income Tax must be filed separately.
Is Annual Audit Required?	Statutory audit is to be conducted irrespective of business transaction and turnover. Income tax audit is applicable if turnover exceeds 2 Crs
Can I convert my business into any other legal form?	Yes, Private Limited Company can be converted into a Public Company or LLP. Even, Public Limited Company can be converted into a Private Limited Company.
Compulsory Conversion to Private Limited Company Applicable?	NO

Do I need a Registration?	Ministry of Corporate Affairs registers an LLP business under the Limited Liability Partnership Act, 2008.
What type of business names can I keep?	Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLPs or companies
How risky is it for me?	"LLP" is a separate legal person in the eyes of law, registered under LLP Act 2008. So, the partners are not responsible for business liabilities.
To what extent is each member of the business liable?	Liable to the extent of their contribution (in money, in kind or in services extended) to the LLP
Tell me the minimum membership limit	2 People
Is foreign ownership allowed?	Yes
How much will I get taxed	Profits get taxed at 30% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
What are my annual tax filing norms?	Every financial year Annual Statement of Accounts & Solvency and Annual Return with the Registrar Plus, Income Tax must be filed separately.
Is Annual Audit Required?	Statutory audit is to be conducted if partners contribution exceeds 25 lakhs or turnover exceeds 40 lakhs. Income tax audit is applicable if turnover exceeds 2 Crs
Can I convert my business into any other legal form?	Yes, Private Limited Company can be converted into a Public Company or LLP. Even, Public Limited Company can be converted into a Private Limited Company.
Compulsory Conversion to Private Limited Company Applicable?	NO

Do I need a Registration?	Yes, Register with Registration of Firms
What type of business names can I keep?	Firm can use any name that he likes, but avoiding names already trademarked is advisable
How risky is it for me?	Partners will stand liable for the liabilities of the business
To what extent is each member of the business liable?	Unlimited liability
Tell me the minimum membership limit	2 People
Is foreign ownership allowed?	No
How much will I get taxed	Profits get taxed at 30% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
What are my annual tax filing norms?	Only Income Tax must be filed for the income of firm and partners.
Is Annual Audit Required?	Only income tax audit is applicable if the turnover exceeds limit of 2 Cr
Can I convert my business into any other legal form?	Yes, Partnership can be converted into a Private Limited Company or LLP
Compulsory Conversion to Private Limited Company Applicable?	NO

Do I need a Registration?	Yes, Ministry of Corporate Affairs registers One Person Companies under the Companies Act, 2013
What type of business names can I keep?	Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLPs or companies
How risky is it for me?	OPC is a separate legal person in the eyes of law. So, the share holder is not responsible for business liabilities.
To what extent is each member of the business liable?	Liability is limited to his/her share capital contribution
Tell me the minimum membership limit	1 Person
Is foreign ownership allowed?	NA
How much will I get taxed	Profits get taxed at 25% plus cess and surcharge. Is applicable if profit exceeds 1 Cr.
What are my annual tax filing norms?	Every financial year OPC must file Annual Accounts and Annual Return with the Registrar of Companies. Plus, Income Tax must be filed separately
Is Annual Audit Required?	Statutory audit is to be conducted irrespective of business transaction and turnover. Income tax audit is applicable if turnover exceeds 2 Crs.
Can I convert my business into any other legal form?	OPC could be converted into any legal form. But, it depends on the number of promoters, business operations, funding requirements and other factors. Limited Liability Partnership or Private Company is preferred by promoters when seeking expansion of their OPC
Compulsory Conversion to Private Limited Company Applicable?	NO

Do I need a Registration?	No legal requirement to do so.
What type of business names can I keep?	Promoter can use any name that he likes, but avoiding names already trademarked is advisable
How risky is it for me?	Promoter will stand liable for the liabilities of the business. Because the business is not considered as a separate legal person/entity
To what extent is each member of the business liable?	Unlimited liability.
Tell me the minimum membership limit	1 Person
Is foreign ownership allowed?	NA
How much will I get taxed	Individual income tax slab of the proprietor is the basis of taxation.
What are my annual tax filing norms?	Only Income Tax must be filed on the basis on proprietor's income.
Is Annual Audit Required?	Only income tax audit is applicable if the turnover exceeds limit of 2 Cr.
Can I convert my business into any other legal form?	No
Compulsory Conversion to Private Limited Company Applicable?	Yes, if turnover exceeds 2 cr

FAQ

Is there any minimum capital requirement?

There is no minimum capital requirement for a partnership firm.

Is there any requirement for a Managing Partner?

There is no requirement to appoint a Managing Partner in a Partnership Firm.

Is it mandatory to have a resident partner?

Yes. A partnership firm should have at least one resident partner.

What is the minimum and maximum number of Partners?

There should be a minimum of 2 partners to form a partnership firm and the maximum number is limited to 100.

Can a partnership firm be converted to a Company or LLP?

A partnership firm can be converted into a Company or LLP by satisfying the statutory requirements.

Can foreign nationals/NRIs become a partner?

Foreign nationals cannot form a partnership firm in India. But NRIs can become partner subject to certain conditions.

More questions? Just write us a message