Partnership Firm Registration

Partnership firm is suitable form of business structure due to low cost, ease of setting up and minimal compliance requirements.

A Partnership firm is collective form of working amongst individuals called partners.

Partnership firm is widely used business structure in India with the following key features:

• Minimum requirements of persons
• Easy to setup partnership firm
• Minimal legal formalities
• Flexibility in operations and decisioning

The following documents are required for Partnership Firm registration:

• Form-1 for applying registration of Partnership Firm
• Certified Copy of notarized Partnership Deed on stamp paper
• Specimen copy of Affidavit declaring intent to become partner
• Ownership documents in case property are owned.
• If the property is on rent then rental agreement as a proof of principal place of business
• Identity Proof and address proof of all the partners (PAN/ Aadhar/ Driving License/ Voter ID card/ Passport)

The key benefits of Partnership Firm are as follows:

• Easy Formation: Formation of Partnership Firm is easy and further the registration of Partnership Firm is not compulsory
• Name Selection: It is advised to get trademark of the name chosen for a Partnership Firm, otherwise some other person may also use the same name for his company.
• Compliances and Regulations: The annual and event based compliances and regulations to run business are considerably less in case of a Partnership Firm as compared to Company or LLP. Also, there is no requirement of Annual returns & statutory audit by registrar of firms.
• Flexibility in operation: Due to the limited number of partners there is flexibility in the operations of business and faster decision making process.
• Sharing of Risk: In partnership every partner bears the risks individually as it is easier compared to sole proprietorship.