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A Partnership Firm is one of the oldest and simplest forms of business structure in India, governed by the Indian Partnership Act, 1932. It is formed when two or more individuals come together to run a business and share profits as per a mutually agreed partnership deed. In a partnership firm, partners jointly manage the business and contribute capital, skills, or labor. Unlike companies, a partnership firm does not have a separate legal identity, meaning partners are personally liable for business obligations. This structure is ideal for small and medium-sized businesses where trust, flexibility, and ease of operation are priorities. Partnership firms are easy to start, involve minimal compliance, and are cost-effective for entrepreneurs planning to operate together.
PAN of all partners
Aadhaar / Passport / Voter ID of partners
Utility bill or bank statement of partners
Signed deed defining roles & profit sharing
Provide partner & business information
Prepare deed with profit-sharing terms
Stamping & signing of partnership deed
Optional registration with Registrar of Firms
At least two individuals required
Partners must be Indian citizens
Partners must be 18 years or older
Valid partnership deed is mandatory
A simple, flexible, and cost-effective business structure.
Minimal legal formalities and quick setup.
Affordable compared to company registration.
Workload and decision-making are shared.
Partners can define rules through deed.
Less regulatory burden than companies.
Multiple partners contribute funds.
Simple closure process if required.
Perfect for family & local businesses.
| Particulars | OPC | Private Limited Company | Proprietorship | LLP | Partnership Firm |
|---|---|---|---|---|---|
| Act | Companies Act, 2013 | Companies Act, 2013 | No Specific Act | LLP Act, 2008 | Indian Partnership Act, 1932 |
| Registration Requirement | Mandatory | Mandatory | Optional | Mandatory | Optional |
| Number of Members | 1 | 2 – 200 | 1 | 2 or more | 2 – 20 |
| Directors / Partners | 1 Director | Min 2 Directors | Proprietor | Min 2 Partners | Min 2 Partners |
| Separate Legal Entity | Yes | Yes | No | Yes | No |
| Liability Protection | Limited | Limited | Unlimited | Limited | Unlimited |
| Statutory Audit | Mandatory | Mandatory | Not Required | Conditional | Not Required |
| Ownership Transfer | Not Allowed | Easy | Not Allowed | Allowed | Restricted |
| Uninterrupted Existence | Yes | Yes | No | Yes | No |
| Foreign Participation | Not Allowed | Allowed | Not Allowed | Allowed | Not Allowed |
| Tax Rates | 22% – 25% | 22% – 25% | As per Slab | 30% | As per Slab |
| Statutory Compliance | Moderate | High | Low | Moderate | Low |
Execution and maintenance of a valid partnership deed defining roles and profit sharing.
Annual filing of income tax return of the partnership firm.
Tax audit is required if turnover exceeds prescribed limits.
GST registration and periodic return filing if applicable.
Proper books of accounts must be maintained.
Update changes in partners with banks and authorities.
Changes in partnership details to be filed with Registrar of Firms.
Timely renewal of trade licenses and local registrations.
A Partnership Firm is a simple and flexible business structure best suited for entrepreneurs who want to start and operate a business together with minimal legal formalities.
With low compliance requirements, shared responsibility, and easy management, partnership firms are ideal for small and medium-sized businesses in India.
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Personal assistance from start to finish of every service.
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A Partnership Firm is a business structure where two or more individuals come together to run a business and share profits as per a partnership deed, governed by the Indian Partnership Act, 1932.
Any two or more Indian citizens above 18 years of age can start a partnership firm. The partners must agree on the terms mentioned in the partnership deed.
No, registration of a partnership firm is optional. However, a registered partnership firm enjoys additional legal benefits and is recommended.
Required documents include PAN and Aadhaar of all partners, address proof, passport-size photographs, and a duly signed partnership deed.
Partnership firm registration usually takes 5–10 working days, depending on document submission and registrar approval.
A partnership deed is a legal agreement that defines profit-sharing ratio, partner roles, capital contribution, and rules governing the firm.
You can get started by contacting us via call, WhatsApp, or email. Our experts will guide you through the complete partnership firm registration process.