1. Home
  2. Company Registartion
  3. Partnership Registration (PR)

Partnership Registration (PR)

Partnership

A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start and it is suitable for small and medium sized businesses in the unorganized sectors. With the introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership.

There are two types of Partnership firms, registered and un-registered Partnership firm. It is not compulsory to register a Partnership firm; however, it is advisable to register a Partnership firm due to the added advantages. Partnership firms are created by drafting a Partnership deed amongst the Partners and CNR SERVICES can help to start a registered or un-registered Partnership firm in India.

Procedure for Registration of Partnership Firm

  • Drafting of Partnership Deed
  • Notary and Stamping of Partnership Deed
  • Filling of Partnership Firm Registration Form
  • Filling of PAN application for Partnership Firm

Partnership Deed

A partnership deed is a written agreement made between two or more partners who are willing to undertake business together. The deed consists of all the terms & conditions that are made in agreement with the partners.

A partnership deed must contain the following:
  • Detail of the firm and its partners such as name and address
  • Nature of the Partnership Firm
  • Detail of capital contributed by each partner
  • Profit/loss sharing ratio among the partners
  • Interest on capital invested
  • Detail of drawings by partners or loans provided by partners
  • Salaries, commissions or any other amount to be payable to partners
  • Rights and duties/obligation of each Partner
  • A process which will be followed in case of retirement or death of any partner
  • Other mutually decided clauses

Documents Required for Partnership

  • Photograph of all the Partners
  • PAN Card of all the Partners
  • ID Proof of all the Partners (Driving License/Passport/Voter ID)
  • Electricity Bill or any other utility bill for the address proof of the Registered Office

What are the features of Partnership Firm Registration in India?

It is good to form partnership Firm in India, because of the following below mentioned features:

  • Minimum two persons are required
  • Responsibilities and duties are shared among the partners of the Company
  • Easy to set-up as partnership firm registration is optional
  • Minimal legal formalities
  • A minor cannot become a partner
  • Flexibility in decision making
To setup Partnership Firm in India, there is a requirement of minimum two persons and maximum 20 who come together with the motive of earning profits.
For Partnership Firm in India, there is no minimum capital requirement, unlike Private Limited Company. You just need capital to maintain a current bank account balance.
It is not mandatory to apply for a partnership firm in India however it is always advised to get it registered with the Registrar of firms as it gives the legal status to the firm.
No, Partnership Firm can only be carried by the partners' resident in India. For setting up a business entity with foreigner one can go with the Private Limited Company registration.
Once the partnership deed is notarized, the firm can apply for the PAN. We can also file PAN application on your behalf.
Yes, you can register a company at your residential address as having a commercial space is not necessary to get a company in India.
Authorized capital is the maximum amount of share capital for which a company can issue shares. Authorized capital can be increased by company at any time with shareholders’ approval.
It depends upon Turnover and Industry/Type of your Company, Please call us for more information.