Partnership Firm

Get Partnership Firm Registration @ affordable price

A Partnership firm is a business entity created by persons who have agreed to share profits or loss of the business. Partnerships are a very good choice of business entity for small enterprises wherein two or more persons decides to contribute to a business and share the profits or losses. In India, Partnerships are widely prevalent because of its ease of formation and minimal regulatory compliance. Also, the concept of LLP was introduced only in 2010, whereas the Partnership Act, 1932 has been in existence before the independence of India. Hence, partnership firms are the most prevalent type of business entity wherein a group of people are involved.
Fill this Form form. We will get back to you shortly

Incorporating a Company as Partnership Firm

There are two types of Partnership, registered Partnership and unregistered Partnership. In terms of the Indian Partnership Act, 1932, (Act), the only criterion to commence business as a partnership is the finalisation and execution of a Partnership Deed between the Partners. The Act does not require the Partnership Deed/Partnership Firm to be registered and in other words, does not require the Partnership Firm to be a registered Firm. Therefore various partnership businesses exist as an unregistered firm.

There are no penalties for non-registration of a partnership firm, and a partnership firm can even be registered after formation. However, unregistered partnership firms have certain rights denied in Section 69 of the Partnership Act, which deals with the effects of non-registration of a partnership firm. Some of the disadvantages of an unregistered firm are:

  • A partner of an unregistered firm cannot file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act.
  • No suit to enforce a right arising from an agreement can be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered.
  • An unregistered firm or any of its partners cannot claim set-off or other proceedings in a dispute with a third party.

Therefore, any partnership should be registered sooner or later.

Cost: The cost for registration of LLP is normally higher than the cost for registration of a partnership firm. LLP registration can be completed online through IndiaFilings at just Rs.5899. Partnership registration can be completed online through IndiaFilings at just Rs.5899.

Authority: LLPs are registered in India under the Ministry of Corporate Affairs, Central Government. Partnership firms are registered with the Registrar of Firms, Controlled by the respective State Government in which the firm is registered.

Limited Liability Protection: The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. An LLP also provides limited liability protection for the owners from the debts of the LLP. However, unlike private limited company shareholder, the partners of an LLP have the right to manage the business directly.

Number of Partners: LLPs and Partnership Firms must have a minimum of two partners to be registered. Post incorporation, an LLP can have unlimited partners. In case of a Partnership Firm, if the number of partners at any time reduces below the mandatory minimum of 2 due to death, incapacitation or resignation of a Partner, the partnership firm would stand dissolved. On the other hand, in case of an LLP, if the number of Partners reduces below 2, the sole Partner can still find a new Partner to fill the position without dissolution of the LLP.

One of the main advantages of a Partnership Firm is that there are very minimal requirements in terms of compliance. For instance, a Company or LLP requires the annual filing of its financial statements with the Registrar of Companies. Such documents filed with the MCA are also made public documents. On the other hand, registered/unregistered Partnership Firms are not required to file any annual returns, and the financial statements of a partnership firm would NOT be made publicly available. Also, the accounts of a registered / unregistered partnership firm are not required to be audited. Whereas, the accounts of a Limited Liability Partnership (LLP) are required to be audited by a practising Chartered Accountant when the turnover exceeds Rs.40 lakhs per annum or when capital contribution exceeds Rs. 25 lakhs.
Partnership firm does not provide its Partners with limited liability protection and does not have perpetual existence. Also, the interest of a Partner in a Partnership firm is not easily transferrable, and the ownership structure does not allow for investment from Angel Investors, Venture Capitalists or Private Equity Firms. Banks / Financial Institutions also prefer to lend to Companies than Partnership Firms as Companies are separate entities and the regulatory requirement for financial reporting of Companies – makes a company more transparent and structured.

Get Registered in 4 Steps

Step 1

Select Service

Select the desired service you want to avail

Step 2

Pay Fee

Pay the mentioned amount for the respective service

Step 3

Send Documents

Send the relevent documents for the service.

Step 4

Get it done

Now get registered and enjoy our service

Documents Required

Pan Card

PAN Card of shareholders and Directors. Foreign nationals must provide a valid passport.

Identity Proof

Aadhar card | Voter ID | Passport | Driving License of Shareholders and Directors.

Address Proof

Latest Telephone Bill | Electricity Bill | Bank Statement | Gas/Water Bill of Shareholders and Directors

Photograph

Latest Passport size Color photograph of Shareholders and Directors.

Registered office Proof

Latest Electricity Bill | Telephone Bill/Water/Gas Bill of the registered office address

NOC from owner

No Objection Certificate to be obtained from the owner(s) of registered office

Rent Agreement

If Property is taken on Rent, then rent agreement required. Agreement must be notarized.

For NRI

All the documents must be apostilled(if applicable) and notarized.

Our
Clients

Our Happy Customer's
Speaks for us

Excellent company. On time followup.. Excellent knowledge in GST and TAXATION... Proper guidelines.. As Customer i will give100 % satisfaction
Bhaskar Reddy
Providing best service in time Excellent
Ramadevi Kota
It was very nice experience with their professional service. They are very good at things and very quick at response. A big thanks for the service and to the team. I would like to recommend for your CA related services.
suresh ch
suresh ch
VNR Associates do my ITR filing. Have found them Swift, prompt and professional. Thanks folks
Karthik S
Very prompt response and accurate work..
Pavan narasimha
Awesome coordination and highly recommendable. Very good follow-up and timely work completion...
SAI KARTHIK KOPPOLU
I have a very good experience with this firm. They clarified all my doubts while filing IT returns. They provided me the excellent service. I am totally satisfied and will recommend to all my friends and relatives. Thanks.
SATISH KUMAR Goli
Very good service and they provide valuable inputs..
Sabarish Pottam
I would strongly recommend for startups, Prabina Kumar Sir will guide your business to next level.
sai kiran
Experts in Company and LLP incorporations. I had approached them for both and had a hassle free processing. Shall surely entrust them with the ROC compliances of the incorporated entities further. Also another feature is their instant resolve for any of our doubts . Very professional and very customer friendly too.
SSarah
With knowledge on vide varieties of topics and great experience and specializations Mr.Prabeena Kumar and his firm are providing all-round services to entities or companies situated at different locations. The best part is that each client shall be given immense importance and best services are being provided. Services provided by the firm are extremely satisfactory irrespective of stature of the client.... For articleship training ,ie..students and trainees this is the best place to work . The training provided by firm in different aspects and subjects shall be a valuable addition in career persuit.
Prasad and Company Limited
Hats Off to these guys. Very efficient and very affordable. They help you with every aspect of accounting. Would suggest to join hands with VNR associates without a second thought.
Pradeep Dasari
Prompt response always and they will always update about the tax news and keeps us posted ahead of time, always available to respond, we can stay tens free. over all its Good...Thanq Team.
MD Hakeem
Great service, good knowledge of income tax, very reasonable fees, professional
Franky Fernandes
We have had a awesome journey with VNR Associates. They provided us edge in the industry to complete our responsibility on time. Their team is very supportive and provides us timely response. We love to be get attached with VNR Associates.
Karthikeyan Jayasankar
Excellent team of young CAs.. Giving solution to types of business tax related queries.. Immediate response👌👌👌
Srinath Pandurangan
Professional to the core. One can get varied financial services all under one roof. They have branches in AP, TG and Karnataka. Wish them all the best.
Mohan Kumar Voonna
Excellent professional support with Integrity and Honesty.
Trinatha Rao Gunti
Great to see an excellent Professional Service from this young team. Highly satisfied with the service received at an affordable cost. It’s amazing to see the passion that’s built in the service that’s being rendered at your office. Would look to receive your professional services in future as well. Good team led by an efficient CA Prabina Kumar
anudeep mogili
They are very helpful. Especially, Prabin sir is very humble and guides you in every aspect of the company life cycle.
Hemanth Kumar
Previous
Next

Frequently asked questions

A minimum of two Persons is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.
The Partner must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India.
PAN Card for the Partners along with identity and address proof is required. It is recommended to draft a Partnership deed and have it signed by all the Partners in the firm.
There is no limit on the minimum capital for starting a Partnership firm. Therefore, a Partnership firm can be started with any amount of minimum capital.
An IndiaFilings Associate will understand your business requirements and help you start a Partnership firm by drafting the Partnership deed. Based on the requirements, IndiaFilings can also help register the Partnership deed with the relevant Authorities to make the Partnership Firm a Registered Partnership firm.
Partnership firms are registered by the Registrar of Firms, under the Indian Partnership Act, 1932.