Partnership Firm Registration: A Step-by-Step Guide with Taxcellent

Do you have in mind of starting a partnership registration firm in Delhi? Knowing the registration process by heart will get you far. Let us Taxcellent help you through the crucial stages of registering your partnership firm.

1. Basic Understanding about Partnership Firms:

A partnership firm is a business structure where two or more individuals (partners) join each other to operate a business with a common goal of profit-making. Partnerships Firms in India are governed by the Indian Partnership Act, of 1932, which clearly defines the rights, duties, and responsibilities of partners.

2. Categories of Partnerships:

Partnerships can be classified into the following categories:

General Partnership: All partners have unlimited liability and participation in the management of the business carried by the
Limited Partnership: It includes limited partners, where limited partners have limited
Limited Liability Partnership (LLP): A hybrid form of partnership and corporation, offering limited liability to partners.

Let’s talk about the registration process for a general partnership firm in Delhi

3. Finalisation of Business Name:

The selection of an appropriate business name is important as it gives an idea about the identity of the partnership firm.

The name should be unique, not based on existing trademarks, and it should be in compliance with the guidelines set by the Registrar of Firms.

Partners should conduct a search on name availability for the firm to ensure that the chosen name is not already in use.

4. Drafting/Preparation of the Partnership Deed:

A partnership deed is a legal document that informs the partners about their rights, duties, and obligations. It includes the following details:

Name & address of the partnership firm
Names, addresses, and contributions of partners
Profit-sharing ratio
Id proofs of the partners
Roles and responsibilities of partners
Duration of the partnership (if fixed)

Taxcellent provides you with legal assistance in drafting a comprehensive partnership deed that addresses all relevant aspects of the partnership.

5. Stamp Duty Payment:

Partnership deeds must be executed on non-judicial stamp paper. The value of stamp paper depends on the capital contribution and state regulations.

The Partners should calculate the appropriate stamp duty and purchase the stamp paper accordingly.

After the preparation of the partnership deed, partners must sign it in the presence of a notary public. Notarization will verify the authenticity of the signatures and add more legal validity to the deed.

6. Obtaining PAN and TAN:

After the registration, partnership firms are required to obtain a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for tax compliance purposes.

Taxcellent can assist in applying for PAN and TAN online through the Income Tax Department’s website. We also assist you in TDS deduction compliance, TDS returns filing & Income Tax Returns filing.

7. Registration of Partnership Deed:

The partnership deed, along with the application for registration, must be submitted to the Registrar of Firms. The application should be accompanied by the prescribed fee and necessary documents. Taxcellent helps in getting partnership firms registered.

8. Documentation for Registration:

The following documents are required for partnership firm registration in Delhi:

Duly filled application form for
Original partnership deed executed on non-judicial stamp
Proof of address of the firm (utility bills, lease agreement, ).
Identity proof of partners (Aadhar card, passport, voter ID, ).
Proof of payment of stamp

9. Verification and Approval:

The Registrar of Firms verifies the submitted documents and, if satisfied, grants the registration.

10. Opening a Bank Account:

Once registered, partners should open a bank account in the firm’s name. All the relevant documents should be provided to the bank for account opening.

Taxcellent helps you register a partnership firm within 7-10 days. We also look into after-incorporation compliances like maintaining books of accounts, GST payment, GST return filing, TDS payments, TDS returns filing, Income Tax Audit, and Income Tax Return Filings in Delhi.