Overview
What partnership firm registration means
A partnership firm is formed when two or more persons agree to share the profits of a business run by all of them, or by any of them acting for all. The Indian Partnership Act, 1932 governs it.
The firm comes into being through the partners' agreement, usually written as a partnership deed. Partnership firm registration is a separate step: the firm files a statement with the Registrar of Firms of the state where its main place of business is.
The law does not force a firm to register. But an unregistered firm loses important rights in court, so most firms register.
Why register
Why register your partnership firm
A firm that is not registered is still a valid partnership. But under Section 69 of the Indian Partnership Act, 1932, it cannot sue a third party to enforce a contract, and a partner cannot sue the firm or the other partners on rights under the contract or the Act. A registration certificate and the deed also give banks and others clear proof of the firm.
A firm can apply for registration at any time after it is formed. Registering before a dispute arises is the safer course.
Partnership deed
The partnership deed comes first
The deed is the written agreement between the partners. It is printed on stamp paper of the value your state requires and signed by all partners.
It records at least the firm's name, its business, its main place of business, each partner's name and address, the date each partner joined, and how long the firm will last. These same details go into the statement filed with the Registrar.
Drafting the deed is part of our service. We prepare it from the terms the partners agree, and the partners sign it.
Package
What our partnership firm registration support includes
Complianto professional feeShared on your free consultation
Registration fee and stamp dutyAt actuals. Set by your state.
- Forms, fees and the way of filing are set by each state.
- We confirm the total before we start.
Documents
Documents of the partners
- PAN card of each partner
- Aadhaar or another ID and address proof of each partner
- A recent passport-size photo of each partner
- The partnership deed signed by all partners
Business place
Documents for the firm's address
- Rent agreement, if the place is rented
- A recent electricity bill or property tax receipt
- No-objection letter from the owner of the premises
States ask for different forms and supporting papers. We share the exact list for your state.
Process
How partnership firm registration works
- 01
Fill the form
Tell us about the partners, the business and the firm's address.
- 02
Settle the deed
The partners agree the terms. The deed is printed on stamp paper and signed by all partners.
- 03
Prepare the statement
The statement for the Registrar lists the firm's details and the partners, and is signed by all partners (Section 58).
- 04
File with the Registrar
The statement is filed with the Registrar of Firms of your state, with the fee the state sets.
- 05
Firm registered
When satisfied, the Registrar records the firm in the Register of Firms, and the firm is then registered (Section 59).
After registration
Next steps for your partnership firm
- PANA partnership firm needs its own PAN, applied for in the firm's name.
- BankOpen a current account in the firm's name with the deed, the registration certificate and the PAN.
- GSTRegister when the firm crosses the GST limits or makes supplies that require it. See GST registration.
- UdyamA small firm can register as an MSME to use MSME schemes. See MSME registration.
- Every yearThe firm files its own income tax return. See income tax return filing.
Still choosing a structure? Compare business structures
Is partnership firm registration compulsory?
No. The Indian Partnership Act, 1932 does not make it compulsory. Some states have amended this rule, so we confirm the position for your state before you register. But under Section 69, an unregistered firm cannot sue a third party to enforce a contract, and a partner cannot sue the firm or the other partners on rights under the contract or the Act.
Where is a partnership firm registered?
With the Registrar of Firms of the state where the firm's main place of business is. Each state sets its own forms and fees.
How many partners are needed?
At least two. Ask our expert about the upper limit for your firm.
What goes into the statement for the Registrar?
The firm's name, its main place of business and other places of business, the date each partner joined, each partner's full name and address, and how long the firm will last. All partners sign it.
Can a firm register after it has started business?
Yes. The Act allows registration at any time. Until it is registered, the firm cannot use the rights that Section 69 links to registration.
Is stamp duty payable on the partnership deed?
Yes, at the rate your state sets. We tell you the stamp value for your state before the deed is printed.
Does a partnership firm need its own PAN?
Yes. Unlike a sole proprietorship, a firm gets a PAN in its own name and files its own income tax return.
Are partners liable for the firm's debts?
Yes. Partners are liable for the firm's debts, jointly with the other partners and on their own. Registration does not change this. An LLP gives limited liability instead.
What if a partner joins or leaves after registration?
Update the deed and tell the Registrar of Firms about the change, so the register stays correct.
Is Complianto a government body or a CA firm?
Neither. Complianto is a compliance facilitation platform operated by Mentorcorp Private Limited. You can also apply directly on the official portal without our fee.
More services
Services for partnership firms
LLP Registration
Partnership with limited liability.
GST Registration
Get a GSTIN for your firm.
Income Tax Return
Yearly return for your firm.
MSME Registration
Udyam registration for small businesses.
Business Registration
Compare structures before you start.
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