How to register Partnership Firm With Legalbae

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What is an Partnership? An Overview

Partnership Registration in India - A partnership is a business owned and operated by two or more individuals. In a partnership, the partners share the profits and losses of the business equally or as agreed upon in the partnership agreement. Partnerships can be either general partnerships, in which all partners are personally responsible for the debts and obligations of the business, or limited partnerships, in which some partners have limited liability. Partnerships offer more flexibility than a sole proprietorship, but they also come with more legal and financial responsibilities.

Features of an Partnership Firm

  • One of the simplest types of businesses to launch is a partnership.
  • A Partnership Firm is very easy to form. In most cases, a partnership deed registration is the only necessity for register partnership firm in india.
  • There is no minimum capital required for Partnership Firm.

Benefits of an Partnership Firm

Shared responsibility

In a partnership firm, the partners share the responsibility of running the business and can divide tasks and decision-making among themselves

Shared profits

Partners in a partnership firm also share the profits of the business, which can be an incentive for partners to work hard and contribute to the success of the business.

Easy to set up

A partnership firm is relatively easy to set up in India. There are few legal requirements, and you can start your business with minimal paperwork.

Shared knowledge and expertise

Partners in a partnership firm can bring different skills, knowledge, and expertise to the business, which can be beneficial for the overall success of the business.

Easy to maintain

A partnershiop firm does not require to submit annual returns to the MCA.

Much less compliances

A partnership firm does not require Statuary Audit.

Eligibility Criteria to register an Partnership

To form an Partnership, one should meet the following criteria:

  • A minimum of two partners are required to form an Partnership
  • A Notarized Deed is essestial to form a Partnership Firm
  • Partnership must have a unique name that should not be similar to any existing Company or Trademark and must not contain any offensive or reserved words

Documents required for Partnership Registration

Document Required for Partners

  • PAN for Indian Residents
  • Aadhaar Card or Voter's Card or Driving License
  • Latest Bank Statement or Telephone bill or Postpaid Bill or Electricity Bill or Notarized Rent agreement
  • Passport size photograph

Document Required for Registered Office

  • NOC from Landlord/lady
  • Notarized Rent Agreement
  • Utility Bill
  • Sale deed in case of Owned Property

Partnership Registration Process

Step 1: Drafting Partnership Deed

Partnerships require an Agreement called Partnership Deed to function. Draft a Partnership Deed ehich must include Duties and commitments of a Partner, Contributions of Partners as well as distribution of Profits and Losses of the Firm.

Step 2: Executing Partnership Deed

Get the drafted deed Notarized. A Partnership deed without notarizarion is not valid.

Step 3: Registering Partnership Firm

Though you can register the partnership deed as per The Indian Partnership Act, 1932 in your respective State Commerce Department, but it is not mandatory and is at the discretion of the partners. If you want your partnershiop firm get recognised as a startup or get legal status registering your partnership firm in the respective department is mandatory.

Partnership-Incorporation Certificate

Partnership Registration Fees

The incorporation cost of registering an Partnership in India, including government and professional fees, is Rs. ₹999. A total breakdown is provided below.

# Service Charges
1 Govt fees for Partnership Registration ₹0
2 Notary and Legal Documents ₹300
3 Professional Fees ₹699
Total fees for Partnership Registration ₹999

What is Included in Our Partnership Registration Package







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Get all your questions answered about Partnership

Asked Questions

A Partnership firm is a business structure in which parties, called business partners, agree to collaborate in pursuing their mutual interests of doing business, sharing profits and losses. The legal document used to establish a partnership firm registration is known as a partnership deed. If a Partnership Firm is registered, it is governed by the Indian Partnership Act, 1932.

There is no such requirement to form a Partnership.

Maximum number of members in a partnership is 10 for a banking business and 20 for other businesses.

The most important difference between a Partnership and Partnership Concern is that an Partnership is a separate legal entity whereas a General Partnership is not a separate legal entity. Unlike a traditional Partnership Firm, where every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner, in Partnership structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful acts or misconduct.

To be eligible for a Partnership registration in india, one should meet the following criteria:

  • At least two partners are required to form an a Partnership.
  • Must have a proper business address.
  • Must have a proper Partnership Deed.

Yes! of course. As long as you have authorization to do business from your Home Office, you can register a Partnership Firm there.

Sure you can. A lot of businesses and firms are getting registered in a Virtual Office. It is pretty much common among Freelance Software Engineers and Professionals.