Partnership Firm Registration
Deed drafting, firm registration and PAN and TAN — the simplest way for two or more people to trade together, done so it holds up later.
A partnership firm is the least formal way for two or more people to run a business together. It is governed by the Indian Partnership Act, 1932, needs no minimum capital, and carries almost no annual filing. The whole arrangement rests on one document: the partnership deed.
Registration of the firm is optional under the Act, which sounds convenient and is the most misunderstood point in this area. An unregistered firm can trade perfectly legally — but it cannot file a suit to enforce a contract against a third party, and a partner cannot sue the firm or the other partners to enforce rights under the deed. You keep the option of doing business and lose the option of enforcing it. That asymmetry only becomes visible when something has already gone wrong.
The trade-off against an LLP is liability. Partners in a firm carry unlimited joint liability, so a partner's business debts can reach every partner's personal assets. If that concerns you and the lighter compliance is not decisive, an LLP gives you the same flexibility with liability contained.
Enquire about Partnership Firm
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If any of these describe where you are right now, this is the service you are looking for.
Two or more people want to run a business together with minimal formality and cost.
You want a written record of profit sharing, capital contribution and responsibilities before disagreements arise.
You need a firm PAN to open a current account or apply for GST registration.
You are trading as an informal partnership already and want the arrangement documented properly.
You want the ability to enforce your contracts in court, which requires the firm to be registered.
You accept unlimited liability, or you want to compare a firm against an LLP before committing.
Everything handled, end to end
The full scope of the engagement, so there is nothing to discover halfway through.
Structure advice
Whether a firm or an LLP suits you, with the liability difference explained in concrete terms rather than as a formality.
Partnership deed drafting
Capital contribution, profit and loss sharing, roles, decision rights, admission and retirement of partners, and dispute resolution — drafted around your actual arrangement.
Stamping and execution
The deed stamped at the applicable value and executed correctly, so it is admissible if it is ever needed.
Firm registration
Registration with the Registrar of Firms under the Indian Partnership Act, 1932, so the firm retains the right to enforce its contracts.
PAN and TAN
Firm PAN and TAN applications, which you will need for a current account, GST registration and any TDS obligations.
Bank account documentation
The document set banks ask for when opening a current account in the firm's name.
Deed amendments
Changes on admission, retirement or death of a partner, or a change in profit sharing, drafted and recorded properly.
Conversion to an LLP
Where liability becomes the deciding factor later, conversion handled rather than starting again.
What you'll need to hand over
Collected once, at the start. We tell you which of these apply to your case before you gather anything.
From every partner
- 01PAN card
- 02Aadhaar card
- 03Passport-sized photograph
- 04Address proof — passport, driving licence, voter ID or a recent utility bill
For the firm
- 01Proposed firm name
- 02Proof of the firm's place of business — electricity bill, property tax receipt or municipal khata
- 03Rent agreement and No Objection Certificate, where the premises are rented
For the deed
- 01Capital contributed by each partner
- 02Profit and loss sharing ratio
- 03Roles and responsibilities of each partner
- 04Whether the partnership is at will or for a fixed term
- 05How a partner may be admitted, retire or be removed
- 06How disputes will be resolved
Stamp duty on a partnership deed is a state matter and varies with capital, so the figure for a Tamil Nadu firm is confirmed at drafting rather than quoted upfront. Spend the time on the deed inputs — it is the entire legal basis of the arrangement.
5 steps, start to finish
Where the work actually goes, and what we need from you at each stage.
Structure and terms
We confirm a firm suits you rather than an LLP, and work through the commercial terms the deed needs to capture.
Confirm with us
Deed drafted and reviewed
The deed drafted around your arrangement and sent for your review, with anything ambiguous flagged before signature.
Confirm with us
Stamping and execution
The deed stamped at the applicable value and executed by all partners.
On approval of the draft
Registration with the Registrar of Firms
The application filed so the firm is registered and retains the right to enforce its contracts.
After execution
PAN, TAN and bank account
Firm PAN and TAN applied for and the current account documentation prepared.
Alongside registration
What to expect, and what it costs
Timelines are indicative and depend on departmental processing and how quickly documents come back to us. Message us on WhatsApp for a written quote.
Enquire on WhatsApp- Terms discussion and deed drafting
- Confirm with us
- Stamping and execution
- On approval of the draft
- Registration with the Registrar of Firms
- Varies by office
- PAN and TAN issue
- Varies
Professional fees
On request
Common questions
The questions we are actually asked about Partnership Firm. If yours is not here, ask us directly.
No — registration is optional under the Indian Partnership Act, 1932. But an unregistered firm cannot sue to enforce a contract against a third party, and partners cannot sue each other to enforce the deed. You can trade unregistered; you cannot enforce. That is why we recommend registering.
Liability. Partners in a firm carry unlimited joint liability, so business debts can reach personal assets. In an LLP, liability is limited to each partner's contribution. A firm has lighter compliance; an LLP has annual filings but contains the risk.
A minimum of two. The maximum is prescribed and differs for certain professions, so confirm it with us for your case. There is no minimum capital requirement, and contributions need not be equal.
Capital contribution, profit and loss sharing, each partner's role and authority, whether the partnership is at will or fixed-term, how partners are admitted or retire, and how disputes are settled. Silence on any of these means the Act's defaults apply instead.
Stamp duty is a state subject and varies with the capital contributed, so the figure for a Tamil Nadu firm is confirmed when the deed is drafted rather than quoted in advance. Under-stamping is worth avoiding, since it affects whether the deed is admissible in evidence.
Not under partnership law itself. An audit may be required under income tax provisions once turnover crosses the applicable threshold. Those thresholds are currently being re-confirmed against the new income tax legislation, so we will advise on your specific figures.
Yes, both are established routes and common once liability or funding becomes a concern. Conversion moves assets, contracts and registrations across, so the tax treatment of the transfer is worth planning before you begin rather than afterwards.
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