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Partnership Firm Incorporation in India

Partnership firm is one of the common types of business in the unorganized sectors of India. In a partnership business, two or more people come together and signs the partnership deed thereof, and share the profit in an agreed ratio. Partnership firms are easy to incorporate and the compliance included in this type of business is minimal.

Partnership firm registration process

1. Submitting the online application to the state Registrar of Firms containing details such as: 

a) Partnership Firm’s Name

b) Partner’s name and address

c) Place of business (includes main office and branch offices address)

d) Partnership Duration

e) Date of joining of partners

f) Date of commencement of business

2. The duly signed copy of the Partnership Deed

3. Stamp duties and registration fees.

4. Approval and issue of incorporation certificate.

Documents required for partnership firm registration

The partnership firm registration process is quite simple the applicant needs to furnish the application form along with prescribed fees to the Registrar of firms of the state. In addition to this following documents are also required to be submitted:

i. Application for partnership registration in Form No. 1

ii. Duly signed specimen of affidavit

iii. Original copy of partnership deed

iv. Address proof of firm

  • Own office – Copy of any utility bill such as electricity bill/water bill/landline bill and so forth
  • Rented office – Rent agreement along with any utility bill and No objection certificate (NOC) from the owner

Advantages of a partnership firm

  • Less compliance
  • Simple to start
  • Comparatively cheaper

Why Masters India Services?

i. Masters India Services will take only 15-20 business days to incorporate your partnership firm
ii. We have active client support that assists you through the partnership firm incorporation process
iii. We provide regular updates about the partnership firm incorporation process until it is complete
Iv. No physical visit to the office completely online process

FAQs

Q. Who can be partners in a partnership firm?

Ans. As per the Partnership Act, a partner shall be a major i.e., above 18 years of age, must be sane and shall not be disqualified by any law from entering into a contract.

Q. A partnership firm has 10 and the business of the firm is trading goods. However, the partnership built on the basis of oral agreement. Is the firm an illegal entity?

Ans. No, this partnership firm is not a legal entity, however it completely a legal partnership. Let us understand how;
a) The number of partners is within the prescribed limit.
b) As per the Partnership Act, there is no such requirement of partnership deed or agreement.
c) There is no such legal requirement to register all partnerships.

Q. Can a Non-Resident Indian be a partner of an India firm?

Ans. There is as such no prohibition mentioned in the Partnership Act regarding this matter, however, the Non-Resident Indian citizen needs to take prior approval, clearances, and permission from the concerned authorities.

Q. What does capital mean in a partnership firm?

Ans. Any amount contributed either in cash or kind by the partner to start the business is known as capital. Capital contribution ratio can be equal or in any proportion based on the partnership agreement between the partners.