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Forming Partnership Firm

Documents Required for Partnership Firm Initiation

Identity Proof of All PartnersPan Cards of All Partners
Address ProofCapital Contribution
Nature of the Business (Details)Contact Details

Benefits of Partnership Firm Registration

Easy Formation

Partnership firm can be easily & quickly incorporated in comparison to other business forms

Cost Effective

Cost of forming a partnership firm is cheaper in comparison to other business forms

Tax Benefit

More tax is saving as compare to sole proprietor business form

Risk Sharing

Individuals having same business goal can form and share risk & rewards.

Compliances & Disclosure

Least compliance & disclosure required as compare to other business form.

Annual Filing Not Required

A Partnership firm is not required to file its annual accounts with the Registrar each year unlike a Limited Liability Partnership or Company

About Partnership Firm As Business Form

Partnership firm is a business form in which 2 or more individuals can join hands to do is managed by partnership act 1932. A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnerships firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors. With the introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership.

There are two types of Partnership firms, registered and un-registered Partnership firm. It is not compulsory to register a Partnership firm; however, it is advisable to register a Partnership firm due to the added advantages. Partnership firms are created by drafting a Partnership deed amongst the Partners and Vyapar Filings can help start a registered or un-registered Partnership firm in India.

  • Basic Package
  • 2499 __
  • Draft & Execute Partnership Deed + Obtain Firm PAN & TAN PAN + GST.
  • Get Started
  • Standard Package
  • 3499 __
  • Draft & Execute Partnership Deed + Obtain Firm PAN & TAN PAN + GST + DSC (Class 2 with 2year validity).
  • Get Started
  • Premium Package
  • 4499 __
  • Draft & Execute Partnership Deed + Obtain Firm PAN & TAN PAN + GST + DSC (Class 2 with 2year validity)+ Shop and Establishment Registration.
  • Get Started
Frequently Asked Questions
Who will register a Partnership firm?

Partnership firms are registered by the Registrar of Firms, under the Indian Partnership Act, 1932.

What is the legal proof of partnership firm?

A signed and notarized Partnership deed drafted on appropriate value of non-judicial stamp paper is the conclusive evidence of the partnership firm. But If the Partnership firm is registered, the Partnership deed will be registered and a Registration Certificate will be issued by the Registrar of Firms.

How many people are required to start a Partnership firm?

A minimum of two Persons is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.

Will my Partnership firm have a separate legal identity?
No, a Partnership firm has no separate legal existence of its own i.e., the Partnership firm and the partners are one and the same in the eyes of law. Liability of the Partners is also unlimited, and the partners are said to be jointly and severally liable for the liabilities of the firm. This means that if the assets and property of the firm is insufficient to meet the debts of the firm, the creditors can recover their loans from the personal property of the individual partners.
Can i name my partnership firm whatever I want?
Yes, you can name whatever you want however that business name is not secured under laws from being copied.  We advise you to incorporate LLP if you want to protect your business name
How can I transfer my Partnership firm?
There are restrictions on the transfer of ownership interest in a Partnership firm. A Partner cannot transfer his/her interest in the firm to any person (except to the existing partners) without the unanimous consent of all other partners.
Is audit required for a Partnership firm?
It is not necessary for Partnerships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion.
What are the annual compliance requirements for a Partnership?
Partnership firm will have to file their annual tax return with the Income Tax Department. Other tax filings like GST, TDS etc. filing may be necessary from time to time, based on the business activity performed. However, annual report or accounts need not be filed with the Ministry or Corporate Affairs, which is required for Limited Liability Partnerships and Companies.
How to open a bank account for a Partnership firm?
To open a bank account for a Partnership firm, a registered Partnership deed along with identity and address proof of the Partners need to be provided.
Can I later convert my Partnership firm into a Company or LLP?
Yes, there are procedures for converting a Partnership business into a Company or a LLP at a later date. However, the procedures to convert a Partnership firm into a Company or LLP are cumbersome, expensive and time-consuming. Therefore, it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Partnership firm