Partnership Firm Registration

Register your Partnership firm

A partnership firm is a popular choice among entrepreneurs due to its simplicity and flexibility. It allows multiple individuals to come together and combine their resources, skills, and expertise to run a business. Registering your partnership firm is the first step towards formalizing your partnership and ensuring its legal recognition.

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Zoho
Odoo
Razorpay
Tally
Petpooja
Amazon Web service
Flyingcolour
Shopify

Overview

An Overview of Partnership firm

Ease of Formation:

Partnership firms are relatively easy and cost-effective to establish, involving fewer formalities compared to other business structures

Varied Skill Sets

Partners can bring diverse skills, knowledge, and resources to the business, enhancing its overall capabilities

Shared Financial Burden

Partners share the financial responsibilities and risks, making it more manageable for each individual.

Tax Benefits

Partnership firms are not subject to income tax themselves. Instead, profits are taxed at the individual partners' tax rates, which can lead to potential tax savings.

Flexible Decision-Making

Partnerships allow for flexible decision-making as partners have a say in the business's operations and direction

Greater Access to Capital

Partners can contribute capital, and additional partners can be added to raise more funds for the business

Why DreamFirm

Why Choose DreamFirm for Registering a Partnership firm in India?

1000+

Firms Registered

100%

Timely Completion of all the process

Documents Needed

Partnership firm company registration online in India is now easy with DreamFirm

✔️Application for partnership registration (form 1)

✔️Authenticated original partnership deed copy

✔️A sample of an affidavit attesting that the partners’ PAN cards

✔️Addresses listed in the partnership deed

✔️Company’s main address

✔️Pan Card

✔️Photo of each director and shareholder

✔️Address and ID proof of each director and shareholder

Benefits of Partnership firm

Here's the Whole Process

Here’s the Whole process of registering the partnership firm in india

01

Step 1: Drafting a Deed of Partnership

A partnership deed should be the first document the partners have to draft when they decide to register their business. The drafted partnership deed should have adhered to the format clearly described in the Indian Partnership Act of 1932. Depending on the business and the agreements between the participants, the deed may be finalised. A deed outlines all of the various elements required to run a successful firm, including the salaries to be paid, the division of profit and loss, interest on capital, exit plan, etc.

02

Step 2: Partnership Deed Execution

After all the present partners in the form agree to draft the partnership deed it should be executed after paying a proper stamp duty. The state where the deed is registered determines the stamp duty. Additionally, the deed needs to be notarised immediately. Each partner must properly sign the deed. The partnership deed must include the witnesses' signatures.

03

Step 3: Stamp Duty And Notary process

Only after completing the stamp duty payments the partnership deed will be executed. All the stamp duty payments have to be completed adhering to the Stamp Act of the particular state where the business is initiated.Both franking and non-judicial stamp paper may be used for the execution of the deed. The primary distinction between franking and stamping is that the former denotes the legitimacy of the documents, the latter does not. It is implied by the franking that fees or taxes, like stamp duty, have been deposited. Payment for franking, which resembles a stamp paper, is done through the banks. Once the stamp fee has been paid, the partners' signatures, as well as those of the relevant witnesses will be collected

04

Step 4: Getting a PAN for the Partnership Company

You can apply for a Permanent Account Number (PAN) before or after the partnership firm has been registered. The same functionality is available in both online and offline modes. When submitting an application to establish a partnership firm, most jurisdictions permit applicants to also apply for a PAN. Apart from this a scanned copy of the partnership deed has to be presented.

05

Step 5: Partnership Firm Registration

The partnership firm is registered in the jurisdiction of the Registrar of Firms (RoF). The application form requests details about the firm, including its name, the names of its partners and their contact information, its location, how long it has been in operation, etc.The partners must comply with any requests for the submission of documents and proofs made by the registrar

06

Step 6: Establishing a Bank Account

The partnership firm's primary objective is to conduct business activities. It follows that a bank account is necessary for the company in order to conduct its everyday functions. The current account will be registered in the company's name. All of the essential paperwork for the partnership will be delivered to the bank. According to the Indian partnership Act of 1932, the business may register itself at any moment after formation. On the other hand, a registration application cannot be made after a third party has sued the partnership business. Even if it's a partnership.

FAQ’s

Partnership firm FAQ’s

Registration of partnership in India is legally formalizing a partnership firm by filing an application with the Registrar of Firms under the Indian Partnership Act, 1932. The registration process involves providing details about the partnership firm, such as its name, location, partners’ details, and the terms and conditions of the partnership agreement.

Registration of a partner to a partnership firm is not compulsory in India. However, if a new partner joins the partnership firm, the partnership deed should be amended, and a supplementary agreement should be executed. While registration of partners is not required, the partnership firm must be registered with the Registrar of Firms under the Indian Partnership Act, 1932.

Under the Indian Partnership Act, the following Individual/entities are eligible to become partners in a partnership firm:

Individual: Any person who is of sound mind, not a minor, not an undercharged insolvent, and not disqualified from entering into a contract by law can become a partner in a partnership firm.
Firm: A registered partnership firm can become a partner in another partnership firm.
Hindu Undivided Family (HUF):The Karta of a HUF can become a partner in a partnership firm in his capacity if he has contributed his self-acquired or personal skill and labor to the partnership firm
Company: Companies are juristic persons and can become partners in a partnership firm if their objects permit it.
Trustees: Trustees of private religious trusts, family trusts, and Hindu mutts can enter into partnerships unless their constitutions or objects forbid it.

A Partnership firm can be started with any amount of capital. There is no minimum requirement as such.

It is very advisable to register a Partnership firm as a Registered Partnership Firm can file a suit in any court against any of the Partners or firm for the enforcement of any right arising from the contract referred by the Partnership Act. Also, only a Registered Partnership Firm can claim set-off or other proceedings in a dispute with a party.

The Partnership firm and the partners are the same in the eyes of the law. In Partnership firms, the liability of the Partners is also unlimited and all the Partners are said to be jointly and severally liable for the liabilities of the firm. Hence, No Partnership firm doesn’t have separate legal existence of its own.

Register your Partnership firm

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