Shubh Consultancy Services
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Why Shubh Consultancy Services?
Partnership Firm Registration in India – Start Your Business with Trust
Starting a business with trusted partners is one of the most powerful ways to grow in the Indian market. If you’re planning to run a business with one or more individuals and want to formalize the arrangement legally, registering as a Partnership Firm is a cost-effective and trusted way to go.
In this guide, we’ll walk you through everything you need to know about partnership registration in India—its benefits, process, documents required, and how our expert services can help you register quickly and hassle-free.
Why Shubh Consultancy Services?
What is a Partnership Firm?
A Partnership Firm is a type of business entity where two or more individuals agree to share the profits and losses of a business carried on by all or any one of them acting for all. The rights, responsibilities, and profit-sharing ratio are clearly mentioned in a Partnership Deed.
Under the Indian Partnership Act, 1932, partnership firms can either be registered or unregistered. While it is not mandatory to register a partnership, a registered firm offers better legal protection and benefits.
Why Register a Partnership Firm?
- Registering your partnership firm has several advantages, including:
- Legal recognition for the firm
- The ability to file lawsuits against third parties
- Ability to claim tax benefits
- Enhanced trust and credibility with banks, vendors, and clients
- Protection against partner disputes
Benefits of Partnership Firm Registration
- Simple & Affordable Setup : Unlike private limited companies or LLPs, a partnership firm is relatively easy and economical to start.
- Minimal Compliance : There are fewer regulatory formalities compared to corporations, making compliance easy and cost-effective.
- Flexible Operations : Partners can decide their terms mutually through a partnership deed, offering operational flexibility.
- Tax Benefits : Firms are taxed at a flat rate of 30%, and interest and remuneration paid to partners are allowable expenses.
- Shared Responsibility : The burden of work and risks are shared, which improves efficiency and decision-making.
Types of Partnership Firms
- Registered Partnership Firm:
Legally recognized and registered with the Registrar of Firms. It allows the firm to enforce contractual rights and take legal action if needed. - Unregistered Partnership Firm:
Operates on the basis of a partnership deed but cannot sue third parties or partners.
For long-term legal safety and business credibility, a Registered Partnership Firm is highly recommended.
Key Elements of a Partnership Deed
A Partnership Deed is the core legal document that outlines the mutual rights and obligations of partners. It includes:
- Name and address of the firm and partners
- Nature of the business
- Capital contribution by each partner
- Profit and loss sharing ratio
- Remuneration to partners (if any)
- Duties and responsibilities of partners
- Rules regarding admission, retirement, and death of a partner
- Dispute resolution mechanism
We assist in professionally drafting a legally compliant Partnership Deed as part of our registration service.
Documents Required for Partnership Firm Registration
PAN Card of all partners
Aadhaar Card / Voter ID / Driving License
Passport-size photographs
Email ID and mobile number
Electricity bill / Water bill / Property tax receipt (not older than 2 months)
Rent agreement (if rented)
No-objection certificate (NOC) from property owner
- Partnership Deed (we help draft it)
- Application for registration (Form 1)
- Affidavit and declaration by partners
Step-by-Step Partnership Registration Process
Here’s how we make partnership firm registration easy:
Step 1: Consultation & Business Name Selection
We guide you through choosing a unique name for your firm and verifying name availability.
Step 2: Drafting the Partnership Deed
We draft a customized deed based on your business and partners’ agreement.
Step 3: Notarization of Deed
Your deed is notarized by a certified notary for legal validity.
Step 4: Filing with Registrar of Firms
We submit Form 1, deed, and other documents to the Registrar of Firms in your state.
Step 5: Partnership Firm Registration Certificate
Once approved, you receive a Certificate of Registration of the partnership firm.
Time Taken: 7 to 10 working days
Our Partnership Registration Services Include:
| Service | Details |
|---|---|
| Free Business Consultation | Guidance on selecting name, capital structure, and partner roles |
| Drafting of Partnership Deed | Customized legal agreement covering profit-sharing, rights, and duties |
| Notarization of Deed | Legal notarization to validate the deed |
| Registration with Registrar of Firms | Filing Form 1 and supporting documents to get the certificate |
| PAN & TAN Application | Applying for PAN & TAN of the firm |
| GST Registration (Optional) | For firms dealing in goods/services above threshold limit |
| MSME (Udyam) Registration (Optional) | Helps avail government benefits and subsidies |
| Ongoing Compliance Support | Filing tax returns and helping with annual compliance |
Who Should Opt for Partnership Firm?
| Small and medium businesses | Local traders and wholesalers |
| Retail shops and service providers | Freelancers and consultants with partners |
| Family-run businesses | |
Legal Validity & Taxation
Registered partnership firms enjoy full legal recognition and the ability to:
Sue and be sued
Open current bank accounts
Avail loans and government schemes
Enter into valid contracts
Taxation for registered partnership firms includes:
Flat 30% income tax
Additional surcharge if applicable
Interest on capital and salary to partners is allowed as an expense
Why Choose Shubh Consultancy Services?
| Expert Guidance by Chartered Accountants | Transparent Pricing – No Hidden Costs |
| Fast Processing with Minimum Documentation | PAN-India Service Coverage |
| End-to-End Compliance Support | |