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What Is a Partnership Firm?
A Partnership Firm is a business run by two or more people who agree to share its profits, governed by the Indian Partnership Act, 1932 and defined through a Partnership Deed.
Governed by a Deed
A written Partnership Deed sets out roles, capital and profit-sharing.
2 to 50 Partners
Needs a minimum of 2 partners, capped at 50 under the Companies Act.
Unlimited Liability
Partners are jointly and personally liable for the firm's debts.
Registration Is Optional
Not mandatory, though registering with the Registrar of Firms is recommended.
No Minimum Capital
Partners can contribute any amount they mutually agree upon.
Shared Profits & Losses
Split among partners as per the deed, or equally if it's silent.
Requirements to Register
Basic conditions that must be met to set up a Partnership Firm.
Minimum 2 Partners
Partnership Deed in Place
Business Address
PAN of Partners & Firm
Lawful Business Purpose
Agreed Profit-Sharing Ratio
Documents Needed for Partnership Registration
Partnership Deed
Executed on stamp paper, signed by all partners.
PAN Card
PAN of each partner and of the firm itself.
Identity Proof
Aadhaar Card, Voter ID, Driving Licence or Passport.
Address Proof
Bank statement or utility bill of each partner.
Business Address Proof
Rent agreement or ownership proof of the firm's premises.
Passport-size Photos
Recent photograph of every partner.
Advantages of a Partnership Firm
Easy & Inexpensive to Start
Minimal formalities and no mandatory incorporation fee to get going.
Shared Capital & Skills
Partners pool resources, expertise and networks into one business.
Flexible Structure
Roles, capital and profit-sharing are governed by mutual agreement, not rigid statute.
Faster Decision-Making
Fewer approvals are needed compared with a company's board process.
Lighter Compliance
No mandatory annual RoC filings, unlike a company or LLP.
Simple to Dissolve
Can be wound up by mutual consent, without an elaborate closure process.
How We Work
From your first call to a registered Partnership Deed.
Fill Form & Make Payment
Share your details and complete payment to start the process.
Expert Call & Requirement Discussion
Our expert discusses your business and collects partner details.
Partnership Deed Drafted
A deed covering capital, roles and profit-sharing is prepared.
Deed Executed on Stamp Paper
All partners sign the deed on appropriately valued stamp paper.
Filed With Registrar of Firms
The deed is submitted for registration with the state Registrar of Firms.
Registration Certificate & PAN
You receive your Certificate of Registration and firm PAN.
Compare Partnership Firm With Other Business Structures
See how a Partnership Firm stacks up against every common structure before you register.
| Basis | Private Limited Company | One Person Company | Limited Liability Partnership | Partnership Firm | Proprietorship Firm |
|---|---|---|---|---|---|
| Act | Companies Act, 2013 | Companies Act, 2013 | LLP Act, 2008 | Indian Partnership Act, 1932 | No dedicated Act |
| Registration Requirement | Mandatory | Mandatory | Mandatory | Optional | Not mandatory |
| Number of Members | 2 – 200 | Only 1 | 2 – Unlimited | 2 – 50 | Only 1 |
| Separate Legal Entity | Yes | Yes | Yes | No | No |
| Liability Protection | Limited | Limited | Limited | Unlimited | Unlimited |
| Statutory Audit | Mandatory | Mandatory | Dependent on turnover/contribution | Not mandatory | Not mandatory |
| Ownership Transferability | Yes | No | Yes | No | No |
| Uninterrupted Existence | Yes | Yes | Yes | No | No |
| Foreign Participation | Allowed | Not Allowed | Allowed | Not Allowed | Not Allowed |
| Tax Rates | Moderate | Moderate | Higher | Higher | Low |
| Statutory Compliance | High | Moderate | Moderate | Less | Less |
Why Us ?
Clients Across India
Professional Experts
Team
Popular Services
Other compliance essentials businesses usually need alongside registration.
Choose Your Plan
Pick the level of support that fits your business — pricing is shared with you directly, based on your specific requirement.
Basic Partnership Deed
Get a legally sound Partnership Deed drafted and executed.
- Partnership Deed drafting
- Execution on stamp paper
- PAN application for the firm
- Guidance on profit-sharing terms
Registered Partnership Firm
Deed drafting plus formal registration with the Registrar of Firms.
- Everything in Basic Deed
- Filing with the Registrar of Firms
- Current bank account assistance
- GST registration
Partnership + Compliance
End-to-end setup with a year of accounting and tax support.
- Everything in Registered Firm
- Annual income tax filing
- Bookkeeping support
- Dedicated compliance manager
* Excluding applicable government fees and stamp duty. Final pricing is shared during consultation.