A partnership firm is formed when two or more people agree to run a business together under the Indian Partnership Act, 1932. The agreement is recorded in a partnership deed. Registering the firm with the state Registrar of Firms is optional, but an unregistered firm cannot file a suit against third parties to enforce its contracts, so most firms register.
The partnership deed
The deed sets out the firm's name, business, capital contributed by each partner, profit-sharing ratio, duties, salaries or interest to partners, and how partners join or leave. It is printed on stamp paper as required by the state and signed by all partners.
Documents you need
- Partnership deed, signed and on the correct stamp paper
- PAN and Aadhaar of all partners
- Address proof of the place of business
- Application form for the Registrar of Firms in your state
How to register
- Draft and sign the deedAgree the terms and execute the deed.
- Apply to the Registrar of FirmsSubmit the application, deed and documents in your state, online where available.
- Get the registration certificateThe firm is entered in the Register of Firms.
- Get PAN and bank accountApply for PAN in the firm's name and open a current account.
- Add GST and IECRegister for GST if needed and get an IEC to export.
Why register the firm
Under the Act, an unregistered firm cannot sue third parties, and partners cannot sue the firm, to enforce rights arising from a contract. Registration also makes it easier to open accounts and deal with banks and buyers.
Frequently asked questions
Is partnership firm registration mandatory?
No, but an unregistered firm cannot sue third parties to enforce its contracts, so registration is strongly recommended.
How many partners can a firm have?
At least two. The upper limit is set under company law rules, generally 50 partners for most businesses.
Are partners personally liable?
Yes. Partners in a general partnership have unlimited, joint liability for the firm's debts. An LLP limits this.
Can a partnership firm export?
Yes. Get a PAN and IEC in the firm's name, and any product registrations needed.
How BuyGenix Solutions helps
We help you choose the right structure, prepare and file the registration, and set up the registrations an exporter needs next, such as GST, IEC and MSME Udyam. BuyGenix members can also see live buyer requirements from importers in India and abroad.
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BuyGenix Solutions handles partnership firm registration and every related registration your business needs, from documentation to filing.
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