OneCallTax

Fast & Reliable Partnership Firm Registration

  • Quick Setup with Expert Support

  • Lowest Cost, Transparent Pricing

  • Simple Process, Minimal Paperwork

  • Ideal for Small & Growing Businesses

  • Need help with partnership firm registration? Contact ONE CALL TAX today to get started.

10k +

Customers

5k+ reviews

Apply for Partnership Firm Registration

Overview of Partnership Firm

A partnership firm is a popular business structure in India, where two or more individuals come together to operate a business under a shared agreement. Governed by the Indian Partnership Act, 1932, this structure is ideal for small and medium-sized businesses looking for minimal compliance and shared responsibilities. Partnerships offer flexibility, ease of formation, and better decision-making through collaboration.

Benefits of a Partnership Firm

Benefits:

  • Ease of Formation: Simple registration process with fewer legal formalities.
  • Flexibility: Partners can mutually decide the terms of the agreement.
  • Cost-Effective: Low setup and operational costs.
  • Combined Expertise: Pooling of skills, resources, and expertise from all partners.
  • Minimal Compliance: Fewer regulatory requirements compared to companies.

Checklist for Pre and Post-Registration of Partnership Firm

Pre-Registration Checklist:

  • Select a unique name for the firm.
  • Draft a partnership deed.
  • Decide on the profit-sharing ratio and capital contribution.
  • Choose the firm’s location and registered office.
  • Gather required documents.

Post-Registration Checklist:

  • Open a bank account in the firm's name.
  • Obtain necessary licenses (e.g., GST, trade license).
  • Apply for PAN and TAN.
  • Maintain proper accounting records.
  • File tax returns and comply with other legal obligations.

Join 1000+ companies

Need help with partnership firm registration? Contact ONE CALL TAX today to get started.

Call usStart Now

Documents Required for Partnership Firm Registration

  • Partnership Deed (signed and notarized).
  • Address proof of the firm (rent agreement, utility bill).
  • PAN cards of all partners.
  • ID proofs (Aadhaar, Passport, Voter ID) of partners.
  • Passport-sized photographs of partners.
  • NOC from the property owner (if applicable).

Additional Registrations Required

  • GST Registration
  • Trademark Registration
  • Import Export Code (IEC)
  • Professional Tax Registration
  • Trade License
  • ESI and PF Registration
  • Accounting and Audit Services
  • Payroll Management Services

Join 1000+ companies

Simplify your partnership firm setup with ONE CALL TAX.

Call usStart Now

Comparison Partnership Firm vs. Pvt Ltd Company vs. LLP vs. OPC

CriteriaPartnership FirmPvt Ltd CompanyLLPOPC
Governing LawIndian Partnership Act, 1932Companies Act, 2013LLP Act, 2008
Legal IdentityNot SeparateSeparateSeparate
LiabilityUnlimitedLimitedLimited
Minimum Members222
Maximum Members20 (10 for banking)200No Limit
Compliance LevelLowHighModerate
TaxationFirm's Income Tax SlabCorporate Tax RatesLLP’s Income Tax Slab

Step-by-Step Process for Registering an LLP

  1. 1Choose a Name
    • Ensure the name is unique and follows the MCA guidelines.
  2. 2Apply for DSC
    • Obtain a Digital Signature Certificate for all partners.
  3. 3Apply for DIN
    • Obtain the Director Identification Number for designated partners.
  4. 4Name Reservation
    • File the RUN-LLP form for name approval.
  5. 5Draft LLP Agreement
    • Draft and notarize the LLP agreement.
  6. 6File Incorporation Application
    • Submit Form FiLLiP along with the required documents.
  7. 7Receive Certificate of Incorporation
    • Obtain the certificate of incorporation from the Ministry of Corporate Affairs (MCA).
  8. 8Apply for PAN and TAN
    • Submit applications for the LLP’s PAN and TAN.

Post Incorporation LLP and Annual Filings for Partnership Firm

Post Incorporation:

  • Open a business bank account.
  • Register for GST, if applicable.
  • Obtain other necessary licenses (e.g., trade license).

Annual Filings:

  • File ITR for the firm.
  • Submit Form 8 (Statement of Account & Solvency).
  • Submit Form 11 (Annual Return).

What is a Partnership Deed?

A partnership deed, also known as a partnership agreement, is a legal document that outlines the rights, responsibilities, and obligations of the partners involved in a business partnership. This agreement acts as a blueprint for the functioning of the partnership, ensuring clarity and avoiding disputes.

Importance of a Partnership Agreement:

  • Clarity of Roles and Responsibilities: It defines the roles of each partner, ensuring smooth operations.
  • Avoidance of Disputes: By detailing the terms, it minimizes misunderstandings among partners.
  • Legal Compliance: Acts as evidence in case of legal disputes.
  • Profit Sharing: Clearly outlines how profits and losses will be shared.
  • Flexibility: Partners can include specific clauses tailored to their business needs.

Join 1000+ companies

Simplify LLP registration with ONE CALL TAX.

Call usStart Now

How to Draft a Partnership Deed

Drafting a partnership deed requires careful consideration of the terms and mutual agreement between partners. Follow these steps:

Gather Basic Information

  • Names and addresses of all partners.
  • Name and address of the partnership firm.
  • Date of commencement of the partnership.

Define Objectives

  • Clearly state the purpose and objectives of the business.

Specify Capital Contributions

  • Contribution of each partner (cash, assets, or services).
  • Procedure for additional contributions if required.

Outline Profit and Loss Sharing

  • Specify how profits and losses will be divided among partners.

Define Roles and Responsibilities

  • Clearly outline the duties and responsibilities of each partner.

Include Key Clauses

  • Duration of Partnership: Specify if the partnership is for a fixed term or indefinite.
  • Decision-Making Process: Define how decisions will be made (unanimous or majority).
  • Dispute Resolution: Specify the method of resolving conflicts (arbitration, mediation, etc.).
  • Admission of New Partners: Procedures for adding new partners.
  • Retirement or Expulsion of Partners: Terms for a partner’s exit or removal.
  • Termination of Partnership: Outline the process for dissolving the partnership.

Consult Legal Experts

  • Seek professional advice to ensure compliance with local laws and regulations.

Finalize and Register

  • Once all partners agree on the terms, sign the deed and register it with the appropriate authority if required.

Example Clauses for a Partnership Deed

  • Clause 1: Name and Nature of Business

    The partnership shall be conducted under the name "XYZ Partners" and shall engage in [specific business activity].

  • Clause 2: Duration

    The partnership shall commence on [date] and continue until terminated by mutual agreement.

  • Clause 3: Capital Contribution

    Partner A shall contribute $50,000, and Partner B shall contribute $30,000. Additional contributions, if required, shall be agreed upon by all partners.

  • Clause 4: Profit and Loss Sharing

    Profits and losses shall be shared in the ratio of 60:40 between Partner A and Partner B.

  • Clause 5: Decision-Making

    All major decisions shall require the unanimous consent of all partners.

  • Clause 6: Dispute Resolution

    In case of disputes, partners agree to resolve issues through arbitration under the Arbitration and Conciliation Act [year].

Taxation Rules and Advance Tax for Partnership Firms

  • Income Tax Rate: Flat rate of 30% on taxable income.
  • Advance Tax: Payable if the tax liability exceeds ₹10,000.
  • Due Dates:
    • June 15: 15%
    • September 15: 45%
    • December 15: 75%
    • March 15: 100%
  • Taxation for Partners
    • Share of profit is exempt from tax in the hands of partners.
    • Remuneration and interest are taxable as income.
  • Income Tax Forms
    • Form ITR-5: For partnership firms.
    • Form ITR-3: For individual partners

Frequently Asked Questions

OneCallTax

SERVICES

By continuing past this page, you agree to our Terms of Service, Privacy Policy © - OneCallTax. All rights reserved.

OneCallTax, CIN - , GSTIN - , Registered Office Address - D14, TVH Park Rozalia, Thoripakkam, Chennai 600097, Tamil Nadu, India.

Please note that we are a facilitating platform enabling access to reliable professionals. We are not a law firm and do not provide legal services ourselves. The information on this website is for the purpose of knowledge only and should not be relied upon as legal advice or opinion.