Partnership Firm Registration in India

Partnering with someone can be an excellent way to start a business. But before you begin, it's crucial to register your partnership firm. This will provide legal recognition, protect your business interests, and ensure that you can operate smoothly without any legal issues.

Don't wait any longer. Register your partnership firm with FastLegal in 3 business days, completely online & hasslefree.

Register your partnership firm online with Fastlegal

With our team of experts easily register partnership firm completely online in 3 simple steps-
Fill the form and provide documents.
Just fill your contact details and share required documents for firm registration.
Sign and share the documents.
Our team of experts will draft and share partnership firm registration deed for review.
Follow-up and regular updates
Follow-up for any further info./docs and regular updates on firm registration status.

Overview- About Partnership Firm

A partnership firm is a type of business organization in which two or more individuals come together to carry on a business venture. In a partnership firm, the partners share the profits and losses of the business according to their agreed-upon terms. The partners are also jointly and severally liable for the debts and obligations of the partnership. A partnership firm is formed by a partnership agreement, which outlines the terms of the partnership, including the roles and responsibilities of each partner, the profit-sharing ratio, and the duration of the partnership. This type of business structure is popular among small businesses and professional services firms, such as law firms, accounting firms, and consulting firms.

Features of Partnership Firm

Mutual trust and confidence

A partnership firm is based on mutual trust and confidence between the partners, who must work together to achieve common business goals.

Shared ownership

A partnership firm is jointly owned by two or more partners who share the profits and losses of the business.


A partnership firm can be dissolved by mutual agreement or in accordance with the terms of the partnership agreement.

Flexible management structure

A partnership firm can be managed by the partners themselves or by a designated partner or manager.

Sharing of profits and losses

The profits and losses of a partnership firm are shared among the partners in proportion to their agreed-upon profit-sharing ratio.

Unlimited liability

Partners in a partnership firm have unlimited liability for the debts and obligations of the business, which means that their personal assets can be used to pay off business debts

Mutual agency

Partners in a partnership firm act as agents for each other and can bind the firm to contracts and agreements.

No separate legal entity

A partnership firm is not a separate legal entity, which means that the partners are personally liable for the debts and obligations of the business.

Partnership Firm Registration process

  • Choose a Unique Firm Name Choose a unique name for the partnership firm.
  • Partnership AgreementThe next step in registering a partnership firm is to draft a partnership agreement. This document outlines the terms of the partnership, including the roles and responsibilities of each partner, profit sharing ratio, and the duration of the partnership.
  • Obtain PAN and TAN The next step is to obtain a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the partnership firm.
  • Application for registration Once the partnership agreement is drafted, and the name is selected, an application for registration of the partnership firm must be submitted to the Registrar of Firms.
  • Documents required The application for registration of the partnership firm must be accompanied by several documents, including a partnership deed, address proof, and identity proof of the partners.
  • Payment of registration fees A registration fee must be paid at the time of submitting the application for registration of the partnership firm.
  • Registration certificate After verifying the application and accompanying documents, the Registrar of Firms will issue a Certificate of Registration for the partnership firm

Type of partners in partnership

Active PartnersActive partners are those who are involved in the day-to-day operations of the business. They are responsible for making business decisions, managing employees, and handling finances. Active partners are also liable for the debts and obligations of the partnership firm.

Sleeping Partners:Sleeping partners are those who invest in the business but are not involved in the day-to-day operations. They do not participate in decision making or have any management responsibilities. However, they are entitled to a share of the profits and losses of the partnership firm.

Nominal Partners:Nominal partners are those who lend their name and reputation to the partnership firm. They do not contribute any capital or participate in the management of the business. Nominal partners are often used to lend credibility to a business or to satisfy legal requirements.

Partner by Estoppel:A partner by estoppel is not actually a partner in the business but is held out to be one by the actions or statements of the other partners. This can occur when a non-partner is represented as a partner in business dealings, leading others to believe that they have authority to act on behalf of the partnership firm.

When registering your partnership firm, it’s important to clearly define the roles and responsibilities of each type of partner in the partnership agreement. This will help avoid misunderstandings and disputes down the line. At [company name], we can help you draft a comprehensive partnership agreement and guide you through the partnership firm.

Importance of Registration of Partnership deed

  • Legal recognition: Registering your partnership firm provides legal recognition to your business, making it easier to conduct business transactions, open bank accounts, and enter into contracts.
  • Credibility: Registering your partnership firm adds credibility to your business and can increase customer and supplier confidence in your operations.
  • Tax benefits: A registered partnership firm is eligible for certain tax benefits, such as deductions and exemptions, which can help reduce the tax burden on the business.
  • Better access to funding: Registered partnership firms have better access to funding options such as loans and investment, as investors and lenders are more likely to consider a registered business as a viable investment opportunity.
  • Brand protection: Registering your partnership firm can help protect your brand name and prevent others from using it without your permission.

Why Fastlegal

Why Fastlegal We make it easier for entrepreneurs to get their partnership firm registered online from the comfort of their home. With Fastlegal, you can get your partnership firm registration done in just 7-10 working days. We provide a comprehensive package that includes not only the registration process but also guidance through the entire process. This includes company partnership agreement drafting, review and approval of partnership deed, getting the company registered with the Registrar of Firms, and more. Additionally, we also offer post-registration services like GST registration, filing of annual returns, and maintenance of statutory records.

Frequently Asked Questions

A partnership firm is a business structure in which two or more individuals agree to share profits and losses in a business venture.

Registering your partnership firm provides legal recognition to your business, liability protection, tax benefits, better access to funding options, brand protection, and ensures legal compliance.

The process for registering a partnership firm includes drafting a partnership agreement, obtaining PAN and TAN, selecting a unique name for the partnership, submitting an application for registration with the Registrar of Firms, paying registration fees, and obtaining a Certificate of Registration.

Yes, a partnership firm can have two or more partners, up to a maximum of 20 partners in the case of a general partnership.

In a general partnership, all partners have unlimited liability for the debts and obligations of the business, while in an LLP, each partner has limited liability. LLPs also offer more flexibility in terms of management structure and decision making.

Profits and losses are shared according to the terms outlined in the partnership agreement, which typically includes a profit sharing ratio based on each partner’s contribution to the business.

Yes, partnerships are required to file income tax returns with the Income Tax Department, even if the business does not have any income or profit.

Partnership Firm Registration

Please enquire for pricing* *price will be decided based on work scope
  • Suitable for Service & Small Business
  • Limited Personal Liability
  • Separate Legal Entity
    Package Inclusions
  • Drafting of LLP Agreement
  • Certificate of LLP Incorporation
  • DIN & DSC of 2 Designated Partners
  • PAN & TAN of LLP
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