REG-04 · Start a business
Partnership Firm
The fastest way for two or more people to start trading together.
- Professional fee from
- ₹2,999
- Timeline
- 3–7 working days
- Governed by
- Indian Partnership Act, 1932
Professional fee. Stamp duty varies by state and is billed at cost.
Best suited to
Small local businesses and family ventures with modest risk
Overview
A partnership is formed by a deed between two or more people. It is quick and inexpensive, and there are no annual ROC filings. The catch is unlimited liability — partners are personally answerable for the firm's debts, jointly and severally.
Registration with the Registrar of Firms is optional in most states, but an unregistered firm cannot sue to enforce a contract. We recommend registering, and the fee is small.
What is included
- Partnership deed drafted to your terms
- Execution on the correct stamp paper for your state
- Registration with the Registrar of Firms
- Firm PAN application
Documents you need
- 01PAN and Aadhaar of every partner
- 02Address proof of the firm's place of business
- 03No Objection Certificate from the property owner
- 04Profit-sharing ratio and capital contribution agreed between partners
How the filing runs
- Day 1
Terms agreed
We take you through profit sharing, capital, roles and exit terms.
- Day 2
Deed drafted
Draft shared for your review and changes.
- Day 3–4
Deed executed
Signed on stamp paper and notarised.
- Day 5–7
Registered
Filed with the Registrar of Firms and PAN applied for.
Questions about partnership firm
01Do I have to register the firm?
It is optional in most states, but strongly advisable. An unregistered firm cannot file a suit against a partner or a third party to enforce a contractual right.
02How is a partnership taxed?
At 30 per cent plus surcharge and cess on firm income. Partners' salary and interest on capital are deductible within the limits set by section 40(b).
Tell us what the business does. We will tell you what it needs.
A 15-minute call with a Chartered Accountant or Company Secretary, at no cost, before you commit to anything.