Partnership Firm
Register a partnership firm with a legally binding deed and tax identity.
A partnership firm allows two or more persons to jointly own and operate a business under the Indian Partnership Act, 1932. Partners share profits, losses, and management responsibilities as defined in the partnership deed. While registration is not mandatory for formation, an unregistered firm cannot sue third parties in court, which makes registration essential for serious commercial operations. Complianceer drafts comprehensive partnership deeds, registers the firm with the Registrar of Firms, and coordinates PAN, GST, and sector licences so your partnership operates with full legal standing.
At a glance
- Timeline: 5–12 working days
- Government fee: ₹200–₹2,000 (Registrar fee + stamp duty varies by state and capital)
- Professional fee: Starting from ₹3,499
Who needs this
- Two or more individuals starting a joint business venture
- Family members pooling resources for a restaurant or food processing unit
- Professional firms (CA, legal, consultancy) with multiple partners
- Existing informal partnerships seeking legal registration
- Businesses preferring simpler compliance over company incorporation
Benefits
- Shared capital, skills, and risk among partners
- Flexible profit-sharing ratios defined in the partnership deed
- Lower compliance burden compared to private limited companies
- Registered firm can sue and be sued, enter contracts, and hold property
- Easier dissolution compared to winding up a company
Eligibility
- Minimum two partners; maximum 50 partners (20 for banking business)
- Partners must be competent to contract (18+ years, sound mind)
- At least one partner must be resident in India for tax purposes
- Firm name must not be identical to existing registered firms or trademarks
Documents
- PAN and Aadhaar of all partners
- Passport-size photographs of all partners
- Partnership deed on stamp paper (state-specific stamp duty applies)
- Registered office address proof with owner NOC
- Affidavit verifying correctness of application (Form I)
- Application for registration (Form I under Indian Partnership Act)
FAQs
Is partnership registration mandatory?
Formation does not require registration, but an unregistered firm cannot file suits against outsiders. Registration is strongly recommended for any commercial operation.
Can a partnership firm convert to a private limited company?
Yes, through a structured conversion process under Companies Act. We handle the migration including asset transfer and compliance continuity.
How is partnership firm taxed?
The firm files its own return, but profits are taxed in partners' hands. Firm is liable for tax at 30% plus surcharge; partners receive credit for tax paid by firm.