“Boundless Services, Seamlessly Delivered: Online Nationwide, Offline in Mumbai!”


Partnership Firm

A partnership is when two or more people agree to share the profits of a business they run together.

This requires three things:

  1. an agreement between the individuals,
  2. an agreement to share profits, and
  3. the business being run by one or all of the individuals.

These are the essential elements of a partnership as stated in Section 4 of the Indian Partnership Act.

Documents Required

  • Pan Card of Partners
  • Aadhar Card of Partners
  • Rental Agreement
  • Electricity Bill
  • NOC from Landlord

*Side right to view more.

DefinitionAn unincorporated business managed by a single individual who has unlimited personal liability for the business’s debts and obligations.A legally binding agreement between two or more parties to jointly own and manage a business, sharing the profits and losses as per the agreed terms.A Limited Liability Partnership is a type of business entity where partners have limited liability for the company’s debts and obligations. It has a legal personality separate from its partners, but is managed by them.A legally recognized business entity that is separate from its owners/shareholders and has limited liability. It can be either privately or publicly owned, and can have a board of directors to manage the business.
OwnershipSole ownershipMin 2 Partners

Max 50 Partners
Designated partnersMin 2 Directors

Min 2 Shareholders

Max 15 Directors

Max 200 Shareholders

For One Person Company

1 Director

1 Nominee Director
Registration Time7-9 working days
Promoter LiabilityUnlimited LiabilityLimited liability

GST Registration
Partnership deedLLP Deed

Incorporation Certificate


Incorporation certificate
Governance-Under Partnership ActLLP Act 2008Under Companies Act,2013
TransferabilityNon TransferableTransferable if registered under ROFTransferable
Compliance RequirementsIncome tax filing if turnover is more than Rs.2.5 lakhsITR 5Form 11

Form 8


MCA filing

Auditor’s app

Partnership Firm Registration FAQ's

The members can extend anywhere from 2-20.

Only a verified Indian citizen is eligible to partner in a partnership firm.

However, non-residents with Indian origin can invest in a partnership with government approval

Documents required for a partnership firm registration:

  1. PAN Card
  2. Identity proof
  3. Address proof
  4. Draft of the partship feed signed and gratified by all the partners.

The owners are given a free hand on investments with no minimum slabs.

Registering a partnership firm is highly recommended because only a registered partnership firm can file a lawsuit in any court against any partner or firm to enforce their rights under the Partnership Act.

Additionally, a registered partnership firm is the only one eligible to claim set-off or other proceedings in a dispute with a party.

Partnership firms and partners are considered the same legally. The partners have unlimited liability and are jointly and severally liable for the firm’s debts. Therefore, a Partnership firm does not have a separate legal existence.

Indeed it is mandatory for such a firm to file the income tax returns irrespective of the profit or losses incurred.

In order to transfer the ownership interest in a partnership firm, consent from each partner must be taken into consideration.

The Partnership deed outlines the terms and conditions of the Partnership and is a crucial document as it regulates the rights and duties of each partner.

A Partner cannot transfer their interest in the Partnership Firm without the consent of all other partners.

It is not mandatory for Partnerships to prepare audited financial statements every year, but a tax audit may be required based on turnover and other criteria.

Yes, a Partnership firm can be converted into a Company or LLP, but the process is complicated and time-consuming. It is advisable to consider starting an LLP or Company instead.

To open a bank account for a Partnership firm a registered Partnership deed along with an identity proof and address proof of the Partner is to be provided.

rkhetanassociate rating's