Partnership Registration in India involves the formal process of registering a partnership firm with the Registrar of Firms under the Indian Partnership Act, 1932. Though registration is not mandatory, it is highly recommended because an unregistered firm faces several legal limitations.
Should not be identical or similar to existing firms.
Should not contain words like Crown, Emperor, Empire, Government, or Municipal unless approved by the government.
This is the legal agreement between partners, which should include:
Name and address of the firm and partners
Nature of business
Date of commencement
Capital contribution by each partner
Profit-sharing ratio
Duties and responsibilities of partners
Rules for admission, retirement, and dissolution
Dispute resolution clause
Stamp Duty: Partnership deed must be printed on a non-judicial stamp paper (value varies by state) and signed by all partners.
Apply for PAN in the firm's name through NSDL or UTIITSL.
Apply for TAN (Tax Deduction and Collection Account Number) if the firm needs to deduct TDS.
Open a current account in the firm's name using PAN, deed, and KYC documents.
Apply for registration with the Registrar of Firms of your respective state by submitting:
Application Form 1 (available from the Registrar or online)
Duly notarized Partnership Deed
Affidavit verifying the details
Proof of principal place of business (rent agreement or utility bill)
ID and address proof of partners
Office of the Registrar of Firms in your district/state
Upon approval, the firm is entered into the Register of Firms and issued a Certificate of Registration.
Can file suits against third parties and partners
Can claim set-off in disputes
Builds trust with vendors, banks, and clients
Proof of existence for other registrations (GST, IEC, etc.)
GST Registration (if turnover exceeds limit or doing interstate supply)
Shop and Establishment License
Professional Tax
MSME Registration (for government schemes and benefits)
