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Partnership Firm

A partnership firm is an organization which is formed with two or more persons to run a business with a view to earn profit. Each member of such a group is known as partner and collectively known as partnership firm. These firms are governed by the Indian Partnership Act, 1932. It is a Central Act but administered by State. In a unique feature, all partners have unlimited liability in the business. The partners are all individually and jointly liable for the firm and the payment of all debts. This means that even personal assets of a partner can be liquidated to meet the debts of the firm. It may be for temporary purpose or permanent. A partnership deed can be entered as such. The words LLC, Inc, PJSC, GMBC, PTE LTD, PVT LTD & LTD are not allowed to be used at the end of the firm's name. Certain words are prohibited in the firm name Ex: India, one can refer Prevention of Names and Emblems Act.

Firm registraton is not mandatory, with out registration also, we can apply pan card and run the business. It may be registered with the District Registrar office so as to show their customers that their business is registered.

To register a Partnership firm, there should be two partners. An NRI/Foreign National may become partners of the firm but one of the partners should be Indian local resident.

Who shall register a Partnership Firm: It is preferable for a small business owners where more capital is not required.

Limited Liability Partnership (LLP)

The Limited Liability Partnership (LLP) is one of the business concepts in India, introduced by the Ministry of Corporate Affairs (MCA), Government of India during the year 2008. Unlike a partnership firm, a limited liability partnership have limited liability in which some or all partners will have the limited liability. It exhibits the elements of both partnership and company. In LLP, one partner is not responsible or liable for another partner's negligence or misconduct.

The limited liability partnership is a legal entity and an alternative to corporate business form. It is liable to the extent of it's total assets whereas the partners liability is limited to the extent of their capital contribution. We can say LLP is an hybrid between a company and a partnership. LLP Registration is regulated by The Ministry of Corporate Affairs, Government of India. The governing law for the LLP is Limited Liability Partnership Act, 2008.

Who shall register LLP: Those who are looking for Traditional, Brick & Mortar Businesses.

Minimum Requirements for Firm Registration

Partners Two
Capital Contribution Rs.2
  • Two partners are rquired. They should be majors. The partner must be an Individual. One of the partners must be local resident.
  • Capital Contribution is the amount up to which, you can deposit in partnership firm current bank account towards capital contribution.

Documents Required for Firm Registration

  • A

    Partner's Documents

    1. Partner's PAN
    2. Partner's ID Proofs
      Aadhaar Card or Voter ID or Passport or Driver's License
    3. Partners Address Proofs:
      Aadhar Card
      Voter Id
      Driver's License.
    4. Partner's latest passport size photograph
    5. Partner's Email ids
    6. Partner's Mobile Numbers linked with their Aadhar
    7. Incase of Foreign designated partners, International Passport is mandatory
  • B

    Firm Documents

    1. Registered Office Address Proof: Latest Power Bill or Property Tax Receipt
    2. No-objection letter from the Landlord.
    3. Rental Agreement from the landlord if the premises are rented.
    4. Firm email id.

How to Register a Partnership Firm - Online Firm Registration Process

Now the Partnership Firm can be registered simply in 3 Steps. Below is the 3 step Firm Registration process.
  • 1

    Documents Preparation

    Through CompaniesHouse - One Hour Job

    We will prepare Partnership Deed, Form-1, Rental Agreement or NOC from the Landlord and other supporting documents.

  • 2

    Online Submission to Registar Office

    Through District Registrar Web Portal - One Hour Job

    We will upload the documents online with the District Registrar web portal and pay the requisite fee.

  • 3

    Certificate of Registration

    Through online - 3 to 5 Days

    After scrutiny, the District Registrar will approve the form and issues you the Certificate of Registration through online.

What All You Get

Certificate of Registration Partnership Deed
Firm PAN Firm TAN
GST Registration MSME Registration

Bank Account, Other Licenses & Compliance

Firm Bank Account Opening:

As of now, the Ministry of Corporate Affairs (MCA) is giving automatic Bank Account only for Companies in any one of the following banks (ie. Punjab National Bank, ICICI Bank, Kotak Mahindra Bank, Bank of Baroda, HDFC Bank, State Bank of India, Union Bank of India, IndusInd Bank or Axis Bank). In case of Firm Registrations, you need to open bank account separately once the Firm is registered. We will help getting your Firm Bank Account opened.

Firm PAN & TAN:

We will file PAN & TAN application once the Firm Registration is done. You will get PAN & TAN with in 10 days.

GST Registration:

Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees*:

Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees**.

* This limit is increased to Rs. 40 Lakhs w.e.f 1st April 2019 for all states except the State of Telangana. Special category states ie. Jammu and Kashmir, Ladakh and Assam also opted Rs.40 lakhs limit.

** This limit is increased to Rs. 20 Lakhs w.e.f 1st April 2019 for Special Category States.

We help registering your business under GST by making application online subsequent to the business formation. This GST Registration in India is online and subject to approval with the GST Officer. Normally, with in 4 to 5 days, you will get your GSTIN and some times it may be delayed due to various reasons.

Other Licenses:

Subsequent upon your Firm Registration, you need to apply for certain other licenses such as (ie. MSME Registration, Import Export Code (IEC), Shops & Establishments Registration, Professional Tax Registration (PT), FSSAI License, Local Trade License etc. We help you get these licenses at an affordable cost.


Once you register your Partnership Firm, you need to file certatain periodic documents with the GST department, Income Tax Department and Other Statutory Department online by paying requisite fee. Apart from filing documents, you need to maintain certain records, registers and maintain books of accounts. You need to prepare the Firm financials such as Profit & Loss Account, Balance Sheet, Shedules to Accounts, Notes to Accounts etc. Our team of experts will assist you in getting all these compliances done at an affordable cost.

Fund Raising & Tax Planning:

Our team of experienced Chartered Accountants & Company Secretaries will help you get funds to run your business by preparing project reports, business plans & term sheets etc. We also help you pay less tax to the government through a proper tax planning.

Benefits of a Partnership Firm Registration

Low Cost of Formation:

The Partnership Firm can be formed with low cost and simple documentation where as a Private Limited Company or Limited Liability Partnerhip incurr lot of cost at the time of incorporation. Digital Signature Certificate is not required to registar a Partnership Firm. The annual compliance cost is much cheaper than that of Private Limited Company or Limited Liability Partnership. A partnership firm is not required to submit or file any documents with the Registrar of Firms an annual basis. It has to file documents with the Registar whenever there is a change in the constitution of the Firm.

Tax Audit & Income Split:

Income Tax Audit is not required for a Partnership Firm if the turnover of the Firm does not exceed Rs. 1 Crore in a financial year and Rs. 2 Crore in case of presumtive income scheme. There is an opportunity for income splitting, an advantage of particular importance due to resultant tax savings. A maximum of 60% of Book Profits can be paid as remuneration to partners of the firm. The remuneration and interest to partners are elibilt to claim as deduction while computing the income from profits and gains from business and profession of the firm, which is subject to limits prescribed under Section 40(b) of the Income Tax Act. The following table illustrates the eligible rementaion payable to partners of the firm:

Calculation of Remuneration payable to partners under Income Tax Act:

You can download it here Click Here or you can view herein below:


The Partnership Deed can be drafted as per the wishes of the partners of the firm. One partner may have more pwoers than others. One partner may become managing partner who will look after marketing, financial and maintaining the day to day administration and business and the other partner will assist first partner. One partner may be authorised to operate the bank account while the other may act as sleeping partner.

Ownership, Control & Privacy:

Unlike a Company, a Partnership Firm has a conrol over decision making of business transaction and it is vested in the hands of partners of the firm and the financail information of the business can not be accessed by third parties. In a Company, the financials can be easily accessable on MCA web portal.

Sharing of Loss:

The Partnership business is also relatively preferable for small businesses and the profits or losses are shared among the partners of the firm. In case of a Proprietorship business, the loss is to be born wolly by the proprietor concerned and in a Partnership business, it has to be shared by both the partners of the firm according the agreed ratio. Hence, the parners may incurr lessor loss when comparing with a Proprietorship business.

CompaniesHouse - The MCA:

As an Official Company Registration Agent, we have built strong ties with the Ministry of Corporate Affairs, Govt of India since our own formation. Since we began, our goal has been to provide a seamless incorporation process that is quick and simple to use. Today, our company registration system is one of the most effective and efficient in India. In just over 5 minutes you can submit your new company name application, and often in just 3-5 days, your company will be fully registered. We also keep our company formation pricing competitive, while always exploring innovative ways to provide value to our customers. We are pleased to be one of the most affordable ways to start a company in India.

We have the expertise to advise which is the correct corporate structure they need to put in place. Most customers come to us for help registering a company limited by shares. The limited company structure is popular as it allows profits to be distributed amongst the shareholders while at the same time protecting them through the limited liability aspect. Our team has well over 20-years of combined expertise forming companies and providing corporate and secretarial services that help thousands of our clients grow their businesses each year.

We are incredibly passionate about the quality of our service, and we are incredibly proud of our customer feedback, as shown by our excellent reviews and ratings. Time and time again, we are selected for the value and expertise that our team is known for. We have helped shape the industry by providing innovative business services and bundled packages that have evolved alongside the needs of our customers.

Our clients have access to free support from an expert team. We are always on standby to help. If you need assistance at any point before, during, and after the registration of your company, you will be able to reach us by telephone or email.

Why CompaniesHouse?

No Hidden Charges:

We believe in clear and transparent pricing. The price advertised is the price you pay. There are no additional costs to register your business.

Speedy Service:

In just over 5 minutes you can submit your new company name application, and often in just 3-5 days, your company will be fully registered.

20+ Years of Exp:

We are experts in our field, our team has over 20 years of experience. Take the hassle out of setting up your business, rest assured that you are backed with the support you need to succeed.

Trusted Service:

Today our clients expect outstanding service. That's why we are so proud that 99% of our clients rate us "Great" and "Excellent" on Google.


The whole process, from ordering to using your company registration license, is made as simple and easy as possible to help you build your business.

Privacy & Security:

Customer privacy and security is paramount. We ensure your payment, company and personal information is protected at the highest level.

What Client Says?

You are truly experienced in Company Registrations. Keep it up!

Ram Kumar Chilukuri Director, Anewa Engineering Pvt Ltd

Thanks for your continuous support. God bless you!

Nrupesh CFO, Blujay Solutions Private Limited

Thank you CompaniesHouse for saving in Income Tax!

Avtar Singh Managing Partner, Chetak Transporters

We are surprised to get our Company registered in one day. Thanks.

Mohammed Fasiuddin Director, Avidus Engineering Pvt Ltd

Thank you for the initial discussion as we choose best business format!

Lakshmi Keerthi Reddy Director, Lavanar Sea Food Farming Private Limited

Thank you CompaniesHouse for reminding on timely statutory compliance!

Rambabu Director, Cybervillage Solutions Pvt ltd

Let's Clear Your Doubts

What is Partnership Business?

Partnership is an agreement between two or more people to share the profits of a business.

Is registration of a Partnership Firm mandatory?

Not mandatory. A partnership business may be run without registration.

Can an NRI or a Foreign national become a partner of a Firm?


What is Capital of a Partnership Firm?

The capital is the intial amount of investment by the partners of the firm both in cash or kind.

Is there any minimum capital required to register a Partnership Firm?

Not required.

What is the duration for Firm Registration?

3 to 5 working days.

What is the Government fee for Firm Registration?

The fee varies from State to State in India. Normally, per parter Rs. 100/- is payable to the government.

Can I start Firm from my home address?

Yes, you can start a partnership firm from your home address too.

Can I register my Firm on my own?

Yes, you can but an advoate attestation is required on the application forms. It is advisable to approach a consultant like us before making application for firm registration.

Can a minor become partner of the firm?

No. He or she should be a major.

What are the minimum number of partners required to register a Partnership Firm?


What are the maximum number of partners required to register a Partnership Firm?