Taxcellent’s Guide: Incorporate Your Partnership Firm in Just 15 Days

A partnership firm can be incorporated in India by drafting a partnership deed, entering into a partnership agreement, and, if desired, partnership firm registration Delhi with the Registrar of Firms.

Steps for Incorporation

• Drafting Partnership Deed: The partners must create a partnership deed on judicial stamp paper, specifying details such as the firm’s name, nature of business, partners’ information, profit/loss sharing ratio, capital contributions, management structure, and dispute resolution mechanisms.
• Signing and Notarization: All partners must sign the deed in the presence of two witnesses, followed by notarization.
• Application for Registration (Optional but Recommended): Registration is voluntary but offers added legal advantages. Partners submit an application with relevant documents (partnership deed, ID/address proofs, photographs, proof of registered office, NOC from property owner, etc.) to the Registrar of Firms. After processing, the Registrar issues a Certificate of Registration.
• PAN, TAN, and GST Registration: Apply for a PAN card for tax purposes, TAN for TDS compliance, and GST registration when required under relevant statutes.
• Licensing and Compliance: Firms may need additional licenses and registrations depending on their specific business activities and location.

Key Requirements for Partnership Incorporation

• Minimum number of partners: 2
• Maximum number of partners: Usually 20 (up to 50 for professional firms in some cases
• Unique firm name: Should not resemble or infringe existing firm/company names.
• Registered office: An address for communication and legal notices is needed.

Advantages

• Simple and cost-effective: Fewer compliance obligations compared to companies and LLPs; lower registration costs.
• Quick decision-making: Direct ownership and management by partners.
• Flexibility: Easy changes in business structure and operations.
• Voluntary registration: Partnership can operate without being registered but company registration provides additional protections.

Summary Table

This process ensures legal and operational readiness for partnership firms in India, governed primarily by the Indian Partnership Act, 1932.

Taxcellent helps you in incorporating companies within 15 Days subject to complete documentation at very reasonable prices.