How To Register A Partnership Firm?

Registering a Company is quick, easy, and can be done online with Numbro in 3 simple steps:

We try to understand the need of the legal entity and the partners involved along with the terms and conditions

We try to understand the need of the legal entity and the partners involved along with the terms and conditions

We will draft a bespoke partnership deed with all the specific clauses that you would want to have and suggest you what are the necessary provisions

We will draft a bespoke partnership deed with all the specific clauses that you would want to have and suggest you what are the necessary provisions

We will get the deed registered and register the firm and apply for relevant statutory registrations

We will get the deed registered and register the firm and apply for relevant statutory registrations

PARTNERSHIP FIRM REGISTRATION

The partnership is the very widely used form of business entity registered in India. It is defined as the transparent blueprint of the relation between two or more individuals who have planned to harvest the profits from a business operated by all the members or any one taking the responsibility of one. All such firms are needed to be registered under The Indian Partnership Act, 1932.

The people involved in such business entity are called partners and can allocate any name to their collective business, which is considered as the firm name. Partnership firms create a platform that draws more business ideas in the business than a sole proprietorship. This type of business entity helps in creating a pool of financial resources and manpower leading to a good and transparent governance.

    ADVANTAGES OF HAVING A PARTNERSHIP FIRM REGISTERED

    Simple setup & easy registration
    Complete control over the business
    Low Cost of formation & management

    FAQ's

    Who is a Partner ?

    Partner is a person who is one of the promoters in a partnership firm.

    What is Partnership Firm ?

    A partnership firm is a form of business entity which is formed with partners who are promoters of the entity. A partnership firm is registered under the partnership act 1932. A partnership firm has to be registered by the partners.

    What is a Partnership Deed ?

    A Partnership deed is an agreement between partners that describes the profit sharing ratio among the partners, remuneration to the partners, objects of the partnership firm, registered office details and all other key information that regulate the way business would be conducted and the key personnel who would be handling the business.

    What is a profit sharing ratio ?

    Profit is a crucial part of any business. Profit sharing ratio is the ratio in which the profit is to be distributed among the partners. This ratio is to be mentioned in the partnership deed.

    How many partners are required in partnership firm ?

    A minimum of two partners are required to start a partnership firm. The maximum number of partners in a partnership firm is 10 except in case of banking firm where a maximum of 20 partners are allowed.

    What is a minimum share capital to start a Partnership firm ?

    There is no minimum share capital unlike a private limited Company. Hence, a partnership firm can start their business without a minimum capital.

    Which form of business can be converted into for Partnership firm?

    A sole proprietorship can be converted into a partnership firm .A partnership firm can be scaled up into a Private Limited Company when there is a scope for expansion.

    Who can start a Partnership firm?

    A signed statement by the Registrar of Companies declaring that a company is duly incorporated under the respective statutes. It is an exclusive evidence that the company has been formally incorporated and complying with all the procedures prescribed under the ac

    Can a NRI start a Partnership firm in India?

    FDI is not allowed in India in form of sole proprietorship or partnership businesses except that NRIs are allowed to do so on non-reparable basis.

    What are the yearly compliances with respect to Income Tax, Service Tax and VAT?

    Income Tax: A partnership firm has to pay an advance tax on quarterly basis if the tax liability payable during the year is more than INR 10,000 and has to file income tax return on a yearly basis.

    Goods & Services Tax (G.S.T): If the partnership firm’s taxable turnover exceeds Rs.20, 00,000 it is liable to be registered under G.S.T and compliances applicable to GST Act have to be complied with.

    Types of Government Registrations

    Features for this type or Registration

    Recommended for:

    Ease of Accommodating Investment

    Limited Liability Protection

    Tax Advantages

    Perpetual Existence

    Statutory Compliances

    Private Limited Company
    • Start-ups & growing companies
    • Very easy to accommodate
    • Yes
    • Few benefits
    • Yes
    • High
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    Limited Liability Partnership
    • Professional services firms
    • Possible, but unlikely
    • Yes
    • Most efficient
    • Yes
    • Low
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    One Person Company
    • Sole promoters
    • Possible, but severely unlikely
    • Yes
    • Few benefits
    • Yes
    • High
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    Partnership Firm
    • Home businesses
    • Almost impossible
    • No
    • Minimal
    • No
    • Minimal
    Sole Proprietorship
    • Small traders and manufacturers
    • Impossible
    • No
    • Impossible
    • No
    • Impossible
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