Online Partnership Firm Registration in India
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Partnership Firm Registration in India
Partnership Firm – Overview
In India, a partnership firm is a business entity that is owned and operated by two or more individuals who are jointly responsible for the management and operation of the business. In a partnership firm, each partner is personally liable for the debts and obligations of the business, and the profits and losses of the business are shared among the partners according to the terms of the partnership agreement.
Partnerships are a common form of business organization in India, particularly for small and medium-sized enterprises. Partnerships can be either general partnerships, in which all partners are equally responsible for the management and operation of the business, or limited partnerships, in which one or more partners are only liable for the debts and obligations of the business to the extent of their capital contribution.
Advantages of Partnership Firm
There are several advantages to forming a partnership firm in India, including:
- Ease of formation: Partnership firms are relatively easy to form and do not have the same level of regulatory requirements as other business forms such as private limited companies or limited liability partnerships.
- Shared liability: Partners in a partnership firm are jointly and severally liable for the debts and obligations of the business, which can be an advantage if the partners have complementary skills and resources.
- Shared profits: Profits from the partnership firm are shared among the partners according to the terms of the partnership agreement, which can be a motivator for partners to work towards the success of the business.
- Flexibility: Partnership firms have greater flexibility in terms of management and operation compared to other business forms, as partners can make decisions jointly and adapt to changing circumstances.
- Ease of dissolution: Partnership firms can be dissolved relatively easily if the partners agree to do so, which can be an advantage if the business is not successful or the partners wish to pursue other opportunities.
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Procedure for Partnership Firm Registration
The procedure for registering a partnership firm in India is as follows:
- Choose a unique name for the partnership firm
- Draft a partnership agreement that outlines the terms of the partnership, including the roles and responsibilities of the partners, the distribution of profits and losses, and the process for dissolving the partnership.
- File the Application for registration of partnership (Form 1) to the Registrar of Firms of the State in which the firm is situated along with prescribed fees with necessary documents.
- Get Certificate of Registration
Required Documents for Partnership Firm Registration
Documents Checklist:
- Application for registration of partnership (Form 1)
- Certified original copy of Partnership Deed.
- An affidavit certifying all the details mentioned in the partnership deed and documents are correct.
- PAN Card and address proof of the partners.
- Proof of principal place of business of the firm (ownership documents or rental/lease agreement). If Property on Rented: – Need Rent Agreement and NOC from Landlord.
Partnership Firm Registration with Advisource
Advisource, your trusted legal service provider, offers an affordable Business registration Services in India. The process includes handling all legal requirements and complying with all the formalities prescribed by Respective Authorities.