Minimum Requirements

• Minimum Two Partners

• DIN (Director Identification Number) of the Partners

• DSC (Digital Signature Certificate) of at least one Partner

• No Minimum Capital Requirement

• At least One Partner must be a Resident Indian

Advantages of a Registered Partnership Firm

• Limited Liability Protection

• Lower Registration Cost

• No Compulsory Audit Requirement

• Separate Legal Entity

• Less Procedural Compliances

What is a Partnership Firm?

Under Section 4 of the Indian Partnership Act, 1932, a partnership is defined as:
“An agreement between persons who have agreed to share profits of the business carried on by all or any of them acting for all.”

A Partnership Firm is the go-to business structure when two or more individuals wish to turn their shared vision into a commercial enterprise. Unlike companies, a partnership firm does not have a distinct legal identity unless registered. However, registration ensures legal recognition, better credibility, and smoother business operations.

Though not mandatory, registering your partnership is highly advisable as it provides legal backing to the terms and conditions outlined in the Partnership Deed, helps resolve disputes, and grants access to special rights in case of conflicts.

Key Features

• Governed by: Indian Partnership Act, 1932

• Profit & Loss Sharing: As per agreed ratio in the Partnership Deed

• Liability: Unlimited (personal assets may be used to meet losses)

• Tenure: Depends on partners’ will or deed; auto-dissolves on death/retirement unless otherwise stated

Why Register a Partnership Firm?

• Legal Recognition: Ability to sue or be sued in the firm’s name

• Business Credibility: Banks, suppliers, and clients prefer dealing with registered entities

• Reduced Disputes: Clearly defined roles and responsibilities in a legally binding Partnership Deed

• Better Compliance: Enables registration for PAN, GST, bank account, and other legal formalities

Documents Required

• Application for Registration (Form 1)

• Notarized Affidavit declaring the intention to form a partnership

• Partnership Deed (signed and notarized)

• Proof of Principal Place of Business – rental agreement or property papers

• Identity & Address Proofs of Partners – PAN, Aadhaar, Passport/Driving License/Voter ID

• Passport-size photos of all Partners

Registration Process

1. Choose a Business Name – Unique and not violating existing trademarks

2. Draft a Partnership Deed – Mention capital, roles, profit-sharing ratio, etc.

3. Register Online – Apply via the respective State Government Portal

4. Obtain PAN – Apply for the PAN card in the name of the firm

5. Open Current Account – Start transactions and commence operations

Is Registration Mandatory?

No, registration of a Partnership Firm is not mandatory under Indian law. However, an unregistered firm:

• Cannot sue third parties

• Cannot claim set-off in legal disputes

• May face issues in opening bank accounts or applying for loans

Hence, registration is strongly recommended to avoid limitations and legal obstacles.

Why Choose S R Mahajan & Co.?

• End-to-End Registration Support
• Fast Processing & Expert Compliance Guidance
• State-Specific Filing Expertise
• Transparent Pricing with Zero Hidden Charges
• Continued Support Post-Registration