2 or More than 2 Persons

Required to Form Partnership

Firm

Partnership Firm is not Separate and Perpetual Entity

Many Tax Benefit and Low Compliance

Get PAN & TAN of Partnership

Low Cost Registration

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Partnership Firm

Key Highlights

  • Partnership firm can be started by 2 or more than 2 partners but a maximum of 20.
  • Traditionally, a partnership firm deed is simply notarised which settles terms & conditions as mutually agreed
  • Partnership can be registered with registrar of partnership which is located in the jurisdiction of firm address
  • Partnership firm are general form

Partnership Firm is so easy to start in the way that it does necessitate registration to start. Although, oral partnership firm can be started but it’s always recommended to reduce the terms between partners in writing. Partnership firm is governed by Partnership Act, 1932.

Partnership firm is a business entity where two or more than two people come together and form a business for earning profit as per the agreed partnership deed.

Advantage & Benefit of Registered Partnership Firm

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Easy to Start

2 or more than 2 persons can start it in a short time

No Approval for Name

A partnership firm can take any name unless & until its undesirable & prevented by law.
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Less Compliance

No annual filing or audit required as per partnership act.

Flexibility

Partners are flexible to agree on terms & conditions of firm which decides profit sharing ratio, management of affairs.

Compare Options

BasisPrivate Limited CompanyLimited Liability PartnershipOne Person CompanyPartnership FirmSole Proprietorship
Business Formation10-15 Days10-15 Days10-15 Days21 Days1-2 Days
Act / LegislationCompanies Act 2013LLP Act 2008Companies Act 2013Partnership Act 1932Not Applicable
Registering AuthorityROC under MCAROC under MCAROC under MCARegistrar of Partnership under Local SDM OfficeNot Applicable
Legal StatusArtificial judicial person with limited liabilitySeparate legal entity with limited liabilityArtificial judicial person with limited liabilityPartners are personally liable with unlimited liabilityPromoter is personally liable with unlimited liability
Members RequiredMinimum - 2
Maximum - 200
Minimum - 2
Maximum - No Limit
Just One Person with one nomineeMinimum - 2
Maximum - 100
Just One Person
Suitable ForStart-upsProfessional firmsIndividual promotersFamily businessesSmall businesses
Taxation BenefitsCertain benefits EfficientBenefitsLowestIndividual slab rate
Compliance ApplicabilityAudit Report, Annual Return, other compliance as per actAnnual Return, Audit report if turnover exceed Rs. 40 lac's in FY or contribution exceeds Rs.25 lacsAudit Report, Annual Return, other compliance as per actAudit Report only as per Income Tax ActAudit Report only as per sec 44AB of Income Tax Act
Investors InclinationMost attractiveNot preferableUnlikelyUnlikelyNo way
Perpetualty
YesYesYesNoNo

Package & Pricing

Documents for Online Registration of Partnership Firm

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PAN of Partners

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Aadhar of Partners

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Photo of Partners

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Email ID of Directors/Subscribers to Memorandum

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Mobile Number of Directors/Subscribers to Memorandum

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Place of Business Address Proof with NOC (Ownership/ Rent Agreement/ Lease deed/ Consent Letter

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Place of Business Address Proof with NOC (Ownership/ Rent Agreement/ Lease deed/ Consent Letter

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Electricity bill of place of business (Latest 2 months)

FAQs

What is traditional and registered partnership?

Partnership can be started orally also and generally written form is notarised. Notarised deed can further be registered with Registrar of partnership to give more legal validity.

Whether liability of partner is limited in partnership firm or not?

Liability of partners in a partnership firm whether traditional or registered are always unlimited.

Can a partnership firm be converted into limited liability partnership firm?

Yes, a partnership form can easily be converted into limited liability partnership. LLP safeguards partners by limiting their liability.

Can a partnership firm be converted into private limited company?

Yes, a partnership form can easily be converted into private limited company.