Business Partnership Structure
Partnership Firm Registration
A Partnership Firm is a business structure where two or more persons agree to share the profits and losses of a business.
In India, partnership firms are highly popular because of their easy formation process and minimal regulatory compliance requirements.
Partnerships are governed by the Indian Partnership Act, 1932.
Types of Partnership
Registered Partnership
Partnership firms registered under the provisions of the Indian Partnership Act, 1932.
Unregistered Partnership
Partnership firms that are not registered and can be formed very easily.
Under Section 69 of the Indian Partnership Act, 1932, registered partnership firms enjoy certain legal rights that are not available to unregistered firms.
Difference Between LLP & Partnership
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Act: LLPs are governed by the LLP Act, 2008 whereas Partnership Firms are governed by the Indian Partnership Act, 1932.
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Governing Authority: LLPs are regulated by the Ministry of Corporate Affairs, while Partnership Firms are registered with the Registrar of Firms under State Governments.
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Liability Protection: LLP partners enjoy limited liability whereas partners in a Partnership Firm have unlimited liability.
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Number of Partners: LLPs can increase members without major restrictions, whereas Partnership Firms have limitations.
Registration of Partnership Firm
A Partnership Firm can be registered under Section 58 of the Indian Partnership Act, 1932.
Registration can be done at any time, either during formation or after the firm has already started operations.
The registration is carried out under the jurisdiction of the Registrar of Firms where the business is located.
Documents Required
- PAN Card
- Passport
- Driving License
- Aadhaar Card
- Voter ID
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Sale deed if one of the partners owns the business premises
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Rental agreement copy if the office premises are rented
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Latest electricity bill, water bill, or property tax receipt
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Duly drafted Partnership Agreement between the partners
Partnership Firm Registration Process
- Submit business and partner details.
- Preparation of Partnership Deed.
- Collection and verification of documents.
- Filing application with Registrar of Firms.
- Issuance of Partnership Registration Certificate.
We help businesses across India to start a new partnership firm or register an existing partnership business with professional support and guidance.
