Partnership Firm Registration in India

Documents Required to Register a Partnership Firm

• Identity Proof and Address Proof of Partners
  a. Passport/ Aadhar card/ Voter ID/ Driver's License of Partners,
  b. PAN card, and
  c. Utility bills or Bank Statements as address proof.
• Proof of Registered Office
  a. Ownership of Property - You can provide proof of ownership, such as an electricity bill or corporation tax receipt dated no more than 30 days old.
  b. Right to Use the Property - You can demonstrate your right to use the property by presenting a rental agreement or a No Objection Certificate (NOC) from the property owner.
• Partnership Deed
  A partnership deed is a crucial agreement that outlines the rights, responsibilities, profit-sharing, and other obligations of the partners. While it can be recorded verbally, it is highly advisable to formalize a written partnership deed with the Registrar of Firms.
• Affidavit ensuring all the documents are accurate and true.

Partnership Firm Registration Process

A partnership isn't considered a separate legal entity and may not require formal registration. You can still register your business by taking the following steps-

• Choose the name of the business.
• Apply to the “Registrar of Firms” through Form A.
• Fill out the Form and attach the required documents, including identity and address proof, specimen of Affidavit, etc.
• Attach the duly signed copy of the Partnership Deed.
• Pay the Fees and submit the form.
• Once approved, your firm will be officially in the records of the Registrar of Firms, and a Registration Certificate will be issued.
• Open a bank account in the name of your business to manage all the transactions.
• Obtain PAN and TAN from the Income Tax Authority.

Disadvantages

• Unlimited Liabilities
  A partnership, like a sole proprietorship, includes partners having unlimited liabilities. If you, as a partner, created some liability, it is to be borne by all the firm partners from their personal property.
• Raising funds
  Since the partnership firm is not a separate legal entity, it is not easy to raise capital. The choices for generating finance and expanding its operations are limited.

Registration Certificate for a Partnership Firm

Following the approval of Form A and Partnership Deed by the Registrar of Firms, you will get a Certificate of Registration. This Registration Certificate includes details like the Firm’s name, Registration Number, Date of Registration, the State where the Firm is registered, etc.

Partnership Firm Registration Fees

The Partnership registration fees can vary significantly from one state to another, primarily due to differences in compliance requirements and stamp duty rates set by individual state governments.
The registration fees for a Partnership Firm can range anywhere from Rs. 500- 3000. 
‍*The stamp duty is determined based on the capital contributed by the partners and the specific regulations established by each state governing stamp duty.

Checklist for Registration

Select a name for your business.

Draft a Partnership Deed.

Apply for Registration with the Registrar of Firms (RoF).

Obtain the Certificate of Registration/ Recognition.

Acquire PAN and TAN for the Firm.

Set up a Current Account.

Keep yourself updated with the compliances.