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All You Need to Know

What is Partnership Firm?

Partnership firm is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in the Partnership Deed. It is owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start and prevalent amongst small and medium-sized businesses in the unorganized sectors.

Partnership firms are created by drafting a Partnership deed amongst the Partners and by a registered Partnership deed, we can help you to start a Partnership firm in India.

Contents of the Partnership Deed:

  • The name of the firm
  • Names and details of all partners
  • Date of commencement of business
  • Duration of the firm’s existence
  • Capital contributed by each partner
  • Profit/loss sharing ratio
  • Interest on capital payable to partners
  • The extent of borrowings each partner can draw
  • Salary payable to partners, if any
  • The procedure of admission or retirement of a partner
  • The method used for calculating goodwill
  • Preparation of accounts of the firm
  • Mode of settlement of dues with a deceased partner’s executors
  • The procedure to be followed in case disputes arise between partners

Why Choose My File Tax for Your Partnership Firm Registration?

My File Tax is a leading business platform offering comprehensive services for incorporation, compliance, advisory, and management consultancy to clients in India and abroad. With My File Tax, registering a Partnership Firm is simple, affordable, and efficient! In addition toPartnership Firm Registration, we also provide expert assistance for Private Limited Company Registration, Public Limited Company Registration, Partnership Registration, HUF, One Person Company, and LLP Registration.

Have any Questions?
Call us Today!

+91 72074 46677

kbharathca@gmail.com

Cost for Partnership Registration

Simple Prices | No Surprises

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ESSENTIAL

₹ 1599/-
(All Inclusive)

  • Drafting of deed
  • Execution of Deed
  • PAN
  • TAN
Choose Plan
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ENHANCED

₹3399/-
(All Inclusive)

  • Drafting of deed
  • Execution of Deed
  • GST Registration
  • PAN
  • TAN
Choose Plan
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ULTIMATE

₹19999/-
(All Inclusive)

  • Drafting of deed
  • Execution of Deed
  • GST Registration
  • SSI/MSME Registration
  • PAN
  • TAN
  • Accounting and bookkeeping (up to 500 transactions)
  • Income Tax filing upto turnover of Rs. 50 Lakhs
  • GST Returns for one year (GSTR 3B and GSTR 1)
Choose Plan

Compliance required by Partnership firm

All you should know about compliance of Partnership firm

GST Registration

Partnership firms in India require GST registration. The GST registration process is 100% online, and there is no requirement for the submission of physical documents to the GST Department. GST registration must be obtained within 30 days of business incorporation; otherwise, the business will be subject to heavy penalties.

GST Return

Under the Goods & Services Tax regime, which apparently rolled out in 2017, partnership firms with GST registration would be required to file GST returns. GST returns can be filed monthly, quarterly, and annual. The filing of GST returns is mandatory for all registered taxpayers, including partnership firms.

Accounting

Accounting for a partnership firm is essential compliance. Every Partnership firm shall maintain proper books of accounts, which shall represent an accurate and fair view of the state of affairs of the Firm. In essence, a separate account tracks each partner’s investment, distributions, etc.

Tax Audit

An income tax audit would be needed for a partnership firm if the total sales turnover was more than Rs. 1 crore during the financial year. In the case of a professional firm, a tax audit would be necessary if total gross receipts exceeded Rs. 50 lakhs throughout the financial year under assessment.

IT Return

Income tax filing must be filed by all partnership firms. The income tax return of a partnership firm that doesn’t need an audit is due on the 31st of July. If the income tax return of a partnership firm is to be audited according to the Income Tax Act, then the return would be unpaid on the 30th of September.

TDS Return

Quarterly TDS returns must be filed by partnership firms that have TAN and are required to deduct tax at source as per TDS rules. A TDS return is a quarterly statement that has to be submitted to the IT Department of India. It should contain all details of TDS deducted and deposited by you for a particular quarter.

Documents Required for Partnership

Quick Checklist

  • Photograph
  • PAN Card
  • ID Proof of all the Partners (Driving License/Passport/Voter ID)
  • Electricity Bill or any other utility bill for the address proof

    • Key features of Partnership Firm

    Points to make your decision easy

    No Minimum Capital

    There are no restrictions as such with respect to the minimum capital requirement in the case of a partnership firm. The partnership firm can be registered even with Rs. 10,000 as total capital.

    Easy-to-Form

    A partnership firm is very easy to form. It comes into existence merely through a partnership deed. Its registration is not mandatory. Even after formation, there are no annual filings to be done except income tax returns.

    Large Resources

    As a partnership firm requires a minimum of two partners, there’s an availability of larger resources be it financial resources or managerial resources as compared to a proprietorship firm.

    Scalability

    Its operations are scalable. Any new partner can be introduced only by executing a supplementary partnership deed. A partner can retire or can be removed by executing a similar deed.

    Sharing Risks

    On account of its very nature, Partnership firm enables sharing of risks by more than 1 person as the profit and losses are shared by all the partners. This ensures diversified financial risks.

    Better Tax Planning

    A partnership firm is a legal tool for better tax planning. The partnership firm is a separate entity, and its tax is calculated separately so it can offer remuneration and interest to working partners.

    How to register Partnership Firm?

    5 Easy Steps for Partnership Registration

    Fill a Simple Checklist

    A compliance manager will get in touch with you to obtain your documents along with a simple checklist. You need to fill out that checklist and submit it along with your documents for processing. Our expert team will verify the documents and proceed with the formalities. All throughout the process, a compliance manager will keep you updated on the progress of firm registration.

     

     

    Partnership Deed

    Upon receipt of your documents, our team will draft a comprehensive partnership deed for your firm. A partnership deed contains very important details of address, commercial terms between partners, their remuneration, interest on capital and profit or loss sharing ratio. Partnership deed will be sent to you for your verification. Once you verify, we will get the same executed.

     

    Firm Incorporated

    Upon payment of stamp duty and notarizing, Once the registrar approves the application, the firm will be entered into the records. After registration, the Partnership firm will attain legal recognition. Once this is done, we will proceed to apply PAN and TAN for your firm. On receipt of PAN, you may proceed to open your firm’s current bank account with a bank of your choice.

     

    FAQs On Partnership

    A partnership firm is a business form in which two or more individuals manage and operate a business in accordance with the terms and objectives set in a partnership deed. This may or may not be registered.

    A partnership must have at least two partners. A partnership firm in the banking business can have up to 10 partners, while those engaged in any other business can have 20 partners.

    No, registration of a partnership is not necessary. However, for a partner to lodge a complaint or sue another partner or the firm itself, the partnership should be registered. Moreover, for the partnership to bring any suit to court, the firm should be registered. For small or family businesses, it is fine if a firm is not registered.

    No, it is not mandatory to have a written partnership agreement, i.e., a partnership deed. However, it is always best to have a written document (a partnership deed) instead of oral agreements.

    Yes. The law presumes that each partner is an agent of the other, and dealing in good faith with one partner binds the other partners as well.

    Yes. The firm and all its partners are liable for any wrongful act or fraud that causes loss or injury to any third parties.

    1. Photos of all Partners 2. PAN card of all Partners 3. Aadhar Card of all Partners 4. PAN Card of the Partnership Firm 5. Proof of Constitution of Business (Partnership deed) 6. Proof of Principle place of business (Anyone: Electricity Bill, Rent or Lease Agreement, or Latest Bank Statement, not less than 2 months old) 7. A letter of authority in favour of any partner.

    When the partnership deed does not contain any provision for the duration of the partnership nor conditions for the termination of the partnership, it is a partnership at will.

    Chaahna Associates provides partnership registration and related services across various cities in India. Whether you are in Bangalore, Delhi, Mumbai, Chennai, Hyderabad, or any other major city, we are here to assist you. Contact us at +91 72074 46677 for more information on our services in your location.

    About Us

    At My File Tax, we simplify complex legal, financial, and compliance requirements for businesses and individuals. Whether you’re starting a new venture, managing existing operations, or ensuring regulatory compliance, we’ve got you covered. From company registrations (Private Limited, LLP, OPC, and more) to GST services, trademark registrations, accounting, and payroll management, our expert team ensures seamless execution tailored to your needs.

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