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Start Business /Partnership Firm Registration

A partnership firm is a type of business structure in which two or more individuals come together to run a business. It is a popular form of business structure in India, and it is relatively easy to register. The bedrock of a partnership is the partnership deed which lays down the legal framework of the business concern and the profit-sharing ratio between the partners. Partnership firms in India are regulated by the Indian Partnership Act, 1932.

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Partnership Firm Registration

Selecting a Name

The first step in registering a partnership firm is to choose a name for the firm that is unique and distinctive. The name chosen must comply with the guidelines set by the Registrar of Firms and must not be similar to any the name of an existing firm.

Drafting the Partnership Deed

A partnership deed is a legal document that outlines the terms and conditions of the partnership, including the rights and responsibilities of the partners, the profit and loss sharing ratio, and the dispute resolution process. The partnership deed should be executed on a stamp paper and must be signed by all the partners.

Obtaining PAN and TAN Numbers

A partnership firm must obtain a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. This is required for tax purposes and must be obtained prior to registering the firm.

Applying to the Registrar of Firms

Partnership firms must register the firm with the Registrar of Firms of the respective state where the firm proposes to operate by submitting Form-A along with the partnership deed and the necessary fees. Form-A is a declaration of the registration of the firm, and should have the names and signatures of all the partners.

Certification of Registration

Once all the above steps have been completed, the Registrar of Firms will issue a certificate of registration, which serves as the legal proof of the registration of the firm. This certificate must be obtained before the firm can commence its business operations.

The Need for Registering a Partnership

The registration of a partnership is not mandatory under law and is left to the sole discretion of partners of the firm whether to register or not. However, doing so is advisable as it provides for legal protection in case a dispute arises between the partners.

Reconstituting a Partnership

Changes in the structure of a partnership caused by factors such as admission of a new partner, resignation or death of a partner, changes in profit sharing ratio etc. will require making suitable changes in the partnership deed. This is called reconstitution of the partnership.

Faq

A partnership firm can be formed by executing a partnership deed that specifies the terms and conditions of the partnership. The deed should be executed on stamped paper and preferably registered with the Registrar of Firms.
Some of the advantages of a partnership firm include shared responsibility, shared profit and loss, flexibility in decision making, ease of formation, and fewer legal formalities.
A partnership firm must have at least two partners, a partnership deed executed on stamped paper that specifies the terms and conditions of the partnership.
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In a partnership firm, the liability of partners is unlimited, which means that they are personally liable for the debts and obligations of the firm. However, the liability can be limited in a limited liability partnership (LLP).
The main difference between a partnership firm and an LLP is that in an LLP, the liability of partners is limited to the extent of their contribution to the firm. Additionally, an LLP must be registered with the Registrar of LLPs, whereas a partnership firm is registered with the Registrar of Firms.
Yes, a partnership firm can be converted into an LLP by executing an agreement and filing the necessary documents with the Registrar of LLPs.
Yes, a partnership firm can be converted into a private limited company by filing an application for conversion with the Registrar of Companies and complying with the necessary legal formalities.

Our simplified process

01Preparation of Partnership Deed

We help partnership firms in the preparation of the partnership deed, clearly defining the roles and responsibilities of the partners and the profit sharing ratio, and including whatever other terms and conditions the partners would like to incorporate in the deed.

02Registration with Tax Authorities

We help partnership firms to register with Income Tax and GST departments, to obtain PAN, TAN and GST numbers and to file annual returns with these authorities.

03Registration with the Registrar of Firms

We do all the paperwork required in registering partnership firms with the Registrar of Firms and obtaining a certificate of registration.

Clients Speak

Great service at reasonable price! Thanks RandL Legal Services team for getting my trademark, fssai and gst registration done successfully.

shreya Jha

Thank you so much for helping us.I have inquired about incorporating my firm and registering trademarks with the company that I contacted. They were responsible for everything, beginning to end.

Jivan Kadam