Asktrix

Complete Guide to Partnership Registration in India with Asktrix

A Partnership Firm is a popular business structure in India, offering simplicity in terms of formation, management, and compliance. At Asktrix, we provide comprehensive partnership firm registration services with expert guidance throughout the entire process.

What is a Partnership Firm?

A Partnership Firm is a business structure where two or more individuals come together to carry on a business with a view to profit. It's governed by the Indian Partnership Act, 1932, and offers flexibility in management while sharing profits and losses among partners.

Why Choose Asktrix for Partnership Registration?

With years of experience in partnership firm registration, Asktrix offers end-to-end support for partnership registration. Our team of experts ensures compliance with all legal requirements while providing personalized guidance tailored to your business needs.

Key Features of a Partnership Firm

  • Easy Formation: Simple registration process with minimal documentation
  • Flexible Management: Partners can manage the business as per their agreement
  • Shared Profits and Losses: Partners share business profits and losses according to their agreement
  • Unlimited Liability: Partners have unlimited liability for firm debts
  • Mutual Agency: Each partner can act on behalf of the firm

Types of Partnership Firms

  • General Partnership: All partners have equal rights and responsibilities
  • Limited Partnership: Some partners have limited liability
  • Partnership at Will: Partnership can be dissolved by any partner
  • Particular Partnership: Partnership for a specific purpose or project

Documents Required for Partnership Registration

The following documents are essential for partnership firm registration:

  • Partnership Deed: Written agreement between partners
  • PAN Cards: PAN cards of all partners
  • Address Proof: Aadhaar card, voter ID, or passport of all partners
  • Business Address Proof: Rent agreement or property documents
  • Bank Account Details: Bank account information for the firm

Eligibility Criteria for Partnership Registration

To register a partnership firm, the following criteria must be met:

  • Minimum Partners: At least 2 partners required
  • Maximum Partners: Maximum 20 partners (10 for banking business)
  • Partnership Deed: Must have a written partnership deed
  • Business Name: Must have a unique business name

Step by Step Registration Process with Asktrix

Our streamlined process ensures quick and hassle-free partnership registration:

1

Drafting the Partnership Deed

Prepare a comprehensive partnership deed outlining terms, profit sharing, and responsibilities.

2

Execution of Partnership Deed

All partners sign the partnership deed on stamp paper of appropriate value.

3

Application for PAN

Apply for PAN card for the partnership firm with the partnership deed.

4

Bank Account Opening

Open a current account in the name of the partnership firm.

5

Registering the Partnership

Submit registration application to the Registrar of Firms with required documents.

6

Certificate of Registration

Receive Certificate of Registration and commence business operations.

Rules and Regulations for Partnership Firms

Partnership firms must comply with various regulations under the Indian Partnership Act, 1932:

  • Compliance with Indian Partnership Act, 1932
  • Maintenance of proper books of accounts
  • Filing of income tax returns
  • Compliance with GST regulations (if applicable)

Compliance Requirements After Partnership Registration

Post-registration, partnership firms must fulfill various compliance obligations:

  • Income Tax Return: Annual filing of income tax returns
  • GST Compliance: GST registration and return filing (if applicable)
  • Books of Accounts: Maintenance of proper books of accounts
  • Audit Requirements: Tax audit if turnover exceeds prescribed limits

Benefits and Government Schemes for Partnership Firms

  • Easy Formation: Simple and cost-effective business structure
  • Flexible Management: Partners can manage according to their agreement
  • Tax Benefits: Lower tax rates compared to companies
  • Access to Government Schemes: Eligibility for various MSME schemes
FAQ

Frequently Asked Questions

Find answers to common questions about partnership firm registration in India.

Is it mandatory to register a Partnership Firm?

No, registration of a partnership firm is not mandatory under the Indian Partnership Act, 1932. However, registration provides legal benefits and protection to the partners.

What is the minimum number of partners required?

A partnership firm requires a minimum of 2 partners and can have a maximum of 20 partners (10 for banking business).

Can a partnership firm have foreign partners?

Yes, foreign nationals can be partners in an Indian partnership firm, subject to compliance with FEMA regulations and RBI guidelines.

What is the validity of a partnership deed?

A partnership deed remains valid until the partnership is dissolved or modified by mutual consent of all partners.

Can a partnership firm raise investment?

Partnership firms can raise investment through loans, but cannot issue shares like companies. They can take loans from banks and financial institutions.

What taxes are applicable to partnership firms?

Partnership firms are subject to income tax, GST (if applicable), and other statutory taxes based on their business activities.

How long does partnership registration take?

With Asktrix, partnership firm registration typically takes 7-10 working days, depending on document verification and government processing time.

Can a partnership firm be converted to a company?

Yes, a partnership firm can be converted to a private limited company or LLP by following the prescribed conversion process.

What happens if a partner wants to leave?

A partner can retire or leave the partnership as per the terms mentioned in the partnership deed. The remaining partners continue the business.

Is audit mandatory for partnership firms?

Tax audit is mandatory for partnership firms if their turnover exceeds ₹1 crore in a financial year, as per Income Tax Act provisions.

Starting your partnership firm with Asktrix provides not only legal registration but also ongoing support for compliance and growth. Explore a smooth path to business success and secure your firm's future with Asktrix's professional guidance and support. For new clients tax saving guidance will come at free of cost. For more details fill the form and get the benefits

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