Partnership firm Registration
Registering a partnership firm in India is governed by the Indian Partnership Act, 1932, and involves specific steps and document submissions to give legal status and recognition to the business.
CRITERIA
- Briefly define a partnership firm and its benefits, such as ease of formation, flexibility, equal profit-sharing, and suitability for small and medium businesses.
Highlight key advantages of registration:
- Legal protection and business credibility.
- Ability to open current bank account.
- Eligibility for government benefits and legal recourse.
- Minimum of two partners required.
- Indian Partnership Act, 1932 governs the process.
- Required Documents
| Document Type | Details |
|---|---|
|
Partnership Deed |
Notarized, detailing business objectives, profit split, partners’ roles. |
|
PAN (Firm & Partners) |
PAN of firm required for taxation; PAN of each partner. |
|
Address Proof |
Rent Agreement & NOC (if rented), utility bill/property ownership (if owned). |
|
Partners’ Identity Proof |
Aadhaar, PAN, Voter ID (self-attested). |
|
Additional Documents |
GST Registration (if turnover exceeds ₹20 lakh), MSME (Udyam) registration, Shop Act License, IEC for exports. |
- Step-by-Step Registration Process
- Draft a partnership deed and notarize it.
- Decide upon a firm name (check compliance with the Indian Partnership Act).
- Fill out Form 1 and submit to Registrar of Firms in your state along with documents and prescribed fees.
- Registrar verifies documents and issues the Partnership Firm Registration Certificate.
- Apply for PAN (mandatory for taxation and banking).
- Register for GST if turnover crosses the threshold.
- Open a current account after registration.
- Post-Registration Compliances
- File annual tax returns.
- Obtain Shop & Establishment License (if applicable).
- Maintain accounts and meet government compliance requirements.
FAQs
Is partnership firm registration mandatory?
- No, but highly recommended for legal and financial benefits.
How long does registration take?
Usually 10–15 business days.
Can the firm be converted to LLP or company?
Yes, with due process.