Partnership Firm Registration in India

When two or more entities come together for business purposes then that type of business is called a Partnership firm. Both the parties have a formal agreement called Partnership Deed, where the ownership, management of the company are mentioned. The risk, responsibility, profit, and liabilities are shared among the partnership entities. You can get your partnership firm registered with us using our service the Groom tax Partnership Firm Registration In India.

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Partnership is a group of two or more individuals who agree to start business jointly and to share the profits of a lawful business. It is managed and carried on either by all or by any, or a number of them acting for all. The formation of partnership is straightforward and simple. Each member of such a gaggle is individually referred to as ‘partner’ and collectively the members are referred to as a ‘partnership firm’. Each partner contributes to all or any aspects of the business, including money, property, labour, or skill. In return, each partner shares out of the available profits and losses of the business.

Because partnerships entail quite one person within the decision-making process, it’s important to debate a good sort of issues up front and develop a legal partnership agreement. This agreement should document how future business decisions are going to be made, including how the partners will divide profits, resolve disputes, change ownership (bring in new partners or take over current partners), and how to dissolve the partnership. Although partnership agreements aren't legally required, they're strongly recommended, and it’s considered extremely risky to work without one.


Easy to start:  Unregistered partnership firm can be started just by drafting a partnership deed and get PAN allotted in the name of partnership firm.

Low Compliances:  No Mandatory audit requirement and no need of any yearly filing like company and LLP.

List of Documents Required

Partnership Firm. Details
  • Name of proposed partnership firm.
  • Objective of the proposed partnership firm.
Proof of Registered Office
  • Latest Utility bill i.e., electricity bill, landline bill or water bill, etc.
  • For a rented place, NOC required in the name of the proposed partnership firm.
Partners Documents
  • PAN Card of all the Partners
  • Photograph of all the Partners
  • Aadhar Card all the Partners
  • Mobile No. and Email id all the Partners
Other Information
  • Capital Contribution and sharing ratio of partners
  • Whether director or partner in any existing Co/LLP
  • Place of birth, Occupation and Educational qualification of director
  • Present residential address and duration of stay


  • 1

    Drafting of partnership deed.

  • 2

    Get it signed and notarized.

  • 3

    Apply for PAN & TAN of partnership firm.


  • Drafted Partnership deed
  • Partnership PAN card
  • Partnership TAN number


Particulars Private Ltd Company Limited Liability Partnership One Person Company Partnership Proprietorship
Separate Legal Entity Yes Yes Yes Yes No
Limited Liability Yes Yes Yes No No
Registration Mandatory Mandatory Mandatory Optional No
Statutory Audit Mandatory Dependent Mandatory No No
Owners/Partners 2 - 200 2 - Unlimited 1 Person 2 - 50 1 Person
Tax Rate 25% 30% 25% 30% Slab Rate
Legal Compliance High Moderate Moderate Least Least
Eligible for Start-up India Benefits Yes Yes Yes Limited No
Eligible for FDI Yes Yes No No No
Funding from Investor Yes No No No No
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Whether Partnership Deed registration is compulsory?
The Partnership Act provides both registered and unregistered partners validity and is recognized by the law. Mostly, the businesses at the initial level prefer unregistered partnerships till they reach a stable level. The unregistered partnership can be registered at any time after its formation.
What are the effects of the non-registration of Partnership?
Due to non-registration, the firm cannot file a lawsuit against any partner or third party. A partner also cannot sue the partnership firm for his claim. However, the third parties can sue the firm to enforce their dues or claims.
Whether the notarisation of the Partnership Deed is necessary?
Yes, a notary on Partnership Deed is necessary in every case for an unregistered or registered partnership firm.
Whether the audit is required for a Partnership Firm?
Partnership firms do not need to prepare audited statements for each year. However, depending on the turnover and a few other criteria, a tax audit statement might be necessary.
Which points should be considered by all the Partners while drafting Partnership Deed?
The Partners should specifically mention the main object and activities along with major clauses related to capital contribution, profit sharing ratio of the partners, management, and administration of Partnership Firm. Further, the signed Partnership Deed shall be duly stamped and notarized.
Can a Partnership Firm be converted into a Private Limited Company or LLP?
A partnership firm can be converted to a Private Limited Company or an LLP considering its requirements.

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