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Partnership Firm
"Partnership" is the relation between two or more persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Two or more parties come together with a formal agreement (known as Partnership Deed) where the roles, duties and the share of each partner is explicitly defined. Persons who have agreed to enter into partnership are called "PARTNERS" and collectively a "FIRM". The risk and responsibilities are shared amongst the Partners.
Partnerships in India is governed by the Indian Partnership Act, 1932. Partnership Act, 1932 defines the structure of a Partnership Firm by providing all the necessary provisions to run the same. The Act validates both registered and unregistered partnership firms in India.
Benefits of forming a Partnership Firm
- Easy to Start
- Minimal Regulatory Compliance
- Operating Flexibility for Partners
- Various Financial Returns for the Partners
Requirements for Forming a Partnership Firm
- Minimum 2 Partners
- No Capital Requirement
Detailed Registration Process
- Submit all the required documents
- Drafting a Partnership Deed
- Payment of Stamp Duty on Deed
- Notarisation of Partnership Deed
- Apply for PAN and TAN of the Firm
- Certificate of Registration from RoF
- Open a Current Bank account on the Firm's name
Documents Required for Registering a Partnership Firm
Identity & Address Proof of Partners
- Copy of Pan Card of Partners (mandatory)
- Aadhaar Card or Voter Id card or Driving License or Passport
- Any one of: Bank Statement or Electricity Bill or Mobile Bill (not older than 2 months)
- Passport Size Photograph of Partners
Proof of Registered Office (any one)
- Conveyance/ Lease deed/Rent Agreement etc. along with rent receipts (any one)
- Copy of the utility bills (Telephone/Gas/Electricity bill) (not older than two months) (any one)
Documents Required for Partnership Registration
- Form No. 1 (Application for registration under Partnership Act)
- Original copy of Partnership Deed, signed by all Partners
- Affidavit declaring intention to become Partner
- Rental or lease agreement of the property/campus on which the business is established
How it works?
Partnership deed drafting
We draft a comprehensive partnership deed covering profit sharing, roles, and exit terms.
Document preparation
Our team prepares all required documents including partner KYC and address proof.
Firm registration
We file the registration application with the Registrar of Firms in your state.
Registration certificate
Receive your partnership firm registration certificate — your firm is now legally recognized.
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I was really impressed with the quality of legal advice I received. The lawyer was patient, knowledgeable, and took the time to explain everything in detail. It felt like having a personal legal advisor at my fingertips.
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Amritsar, Punjab
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Patna, Bihar
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Lucknow, Uttar Pradesh
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Bhopal, Madhya Pradesh
I've been using the Legitax app and it's really made dealing with legal stuff easier. It's great how I can just open the app and quickly find a legal expert to talk to, no matter what time it is. Every time I've had a question, big or small, I've gotten easy-to-understand answers from their experts. The app is super easy to use too, which is a big plus for me. I feel more confident handling legal things now. Legitax has been a big help!
Vijay Kanoor
Bengalore, Karnataka
The Legal advice I get is straightforward and easy to understand, which is important for me. Using Legitax has taken away a lot of stress when it comes to legal matters. I definitely recommend it to anyone looking for quick and reliable legal help.
Krishnamoorthy B
Chennai, Tamil Nadu
The advocate I connected with on Legitax was incredibly helpful, clearing up many doubts I had. They offered solutions and insights into issues that were affecting my family and me. I've had such a positive experience that I wouldn't hesitate to recommend Legitax to my friends.
Bhavesh Jain
Jaipur, Rajasthan
I was really impressed with the quality of legal advice I received. The lawyer was patient, knowledgeable, and took the time to explain everything in detail. It felt like having a personal legal advisor at my fingertips.
Lata Sharma
Amritsar, Punjab
Very convenient service. I needed urgent legal advice regarding a property dispute and was connected with a qualified lawyer within minutes. The consultation was thorough and the advice was practical and actionable.
Prakesh Ranjan
Patna, Bihar
Excellent platform for legal consultations. The process is seamless and the lawyers are very professional. I got my documents reviewed quickly and the feedback was comprehensive. Highly recommended for anyone needing legal assistance.
Preety Singh
Lucknow, Uttar Pradesh
Legitax made the entire process of getting legal help so much simpler. From consultation to document drafting, everything was handled professionally. The pricing is transparent and reasonable.
Arvind Pratap
Bhopal, Madhya Pradesh
Frequently asked questions
A partnership firm can be registered whether at the time of its formation or even subsequently. The application for registration is to be made to the registrar of firms of the region in which the business is located. It is advisable to get the firm registered as soon as it starts its business to avail the rights and benefits that can be enjoyed only by a registered firm.
As per the Partnership Act, both registered and unregistered partnerships are valid and recognised by law. Partnership registration is not compulsory. Mostly, the businesses at initial level prefer unregistered partnership till they reach stable level. The unregistered partnership can be registered at any time after its formation.
If the Partnership is not registered, the firm cannot file suit against any partner or the third party. A partner also cannot sue the partnership firm for his claim.
Only a registered partnership firm can claim a set off (ie. mutual adjustment of debts owned by the disputant parties to one another) or other proceedings in a dispute with a third party. Also, only a registered partnership firm can file a suit in any court against the firm or other Partners for the enforcement of any right arising from a contract or rights conferred by the Partnership Act.
Formation of Partnership Firm does not require any minimum amount. It can be started with any amount of capital contribution by the partners. The Partners can contribute any amount agreed amongst themselves and in any tangible form (cash, land, office space etc.) or intangible (goodwill, intellectual property).
A Partnership Firm is required to maintain the Books of Accounts and Financial Statement. The Income Tax Return should be filed for the respective financial year before the due date as per the Income Tax Act.