Partnership Firm Registration

Planning to start a business with your friends, colleagues, or family members? A Partnership Firm is one of the oldest and most trusted business structures in India, ideal for small and medium-sized businesses.

At NEXGENCA, we make Partnership Firm registration simple, quick, and affordable. Whether you choose a Registered Partnership or an Unregistered Partnership, we ensure complete guidance so that your business starts on the right track.

Why Choose a Partnership Firm?

Easy to form with two or more persons
Low cost and minimum compliance
Partners share profits and responsibilities
Suitable for traders, manufacturers, and small businesses
Flexibility in management & decision-making

Types of Partnership Firms in India

Registered Partnership Firm
- Registered with the Registrar of Firms under the Indian Partnership Act, 1932.
- Offers more legal protection.
Unregistered Partnership Firm
- Not registered with the Registrar of Firms.
- Easy to form, but partners may have limited legal rights.

Key Features of a Partnership Firm

Minimum 2 Partners required (maximum 50).
Partnership Deed governs the relationship between partners.
Shared Profits & Losses among partners.
Mutual Agency – each partner can act on behalf of the firm.
No Minimum Capital required.
Name of Firm should not be identical to an existing business.

Step-by-Step Partnership Firm Registration Process

Step 1: Draft a Partnership Deed

Prepared on stamp paper.
Contains firm name, nature of business, capital contribution, profit-sharing ratio, and partner duties.

Step 2: Collect Supporting Documents

ID & Address proof of all partners.
Proof of office address.

Step 3: Apply for PAN & TAN of the Firm

Mandatory for taxation and bank purposes.

Step 4: Apply for Registration (Optional but Recommended)

Submit Partnership Deed + application to Registrar of Firms.

Step 5: Open Current Bank Account

Use Partnership Deed and firm PAN to open a bank account in firm’s name.
Timeline: 7–10 working days

Documents Required

For Partners

PAN card of all partners
Aadhaar card/Voter ID/Passport/Driving License
Passport-size photos

For Firm/Office Address

Partnership Deed (on stamp paper)
Electricity/Water/Telephone bill (latest)
Rent Agreement + NOC from owner (if rented)
Ownership proof (if owned)

Time Required

Drafting Partnership Deed: 1–2 days
PAN/TAN Application: 2–3 days
Registration with Registrar of Firms: 7–10 days
Bank Account Opening: 1–2 days
Total Time: 7–12 working days

Partnership Deed – Must Include

Firm name and business address
Nature of business
Names & addresses of all partners
Capital contribution by each partner
Profit-sharing ratio
Rules for admission/retirement/death of a partner
Rights, duties & liabilities of partners
Dispute resolution clause

Minimum 2 partners are required.

Maximum 50 partners.

No, but registration provides more legal rights and protection.

Yes, an unregistered firm can operate legally, but it cannot sue third parties.

A legal document that governs the rights and duties of partners.

Yes, the firm must obtain a PAN card in its own name.

GST is required if turnover crosses threshold limit (₹20–40 lakh) or for interstate supply.

Firm’s profits are taxed at 30% + surcharge & cess. Partners’ share is exempt from tax.

Yes, conversion is allowed as per MCA guidelines.

Yes, if employment contract allows.

No minimum capital required.

Yes, family members can be partners.

Yes, it can own property in its own name.

Audit is required only if turnover exceeds Income Tax Act limits.

Yes, using the Partnership Deed and PAN, a current account can be opened.

Office Address

Phone Number

Email Address