Partnership firm is a business entity where two or more persons run a business with a view to earn profit and is formed under the Indian Partnership Act, 1932. Those 2 or more persons are called the partners. However, it is not mandatory to register a partnership firm. But, considering the benefits in future, it is always advisable to register your partnership firm. A partnership firm is registered with a minimum number of 2 partners.

Procedure to register Partnership firm:

• Choose a name for your partnership firm, considering the fact that it should not be similar to already registered firm in the same business line. Also, ensure that you don't choose a name that requires approval from the government.
• Fill and submit a statement or application to the Registrar of Firms in the prescribed form- Form 1 (Online facility for the submission is available now), that includes the following details:
  • Name of the firm
  • Nature of business of the firm
  • Place or principal place of business of the firm
  • Names of any other places where the firm carries on business
  • Joining date of each partner of the firm
  • Full names and permanent address of all the partners
  • Duration of the firm Note- This statement shall be signed by all the partners or their agents (authorised in this behalf).
• Draft a partnership deed on a stamp paper that includes the following major details:
  • Names and addresses of all partners
  • Nature of business of the firm
  • Date of commencement of business
  • Capital contribution by partners
  • Interest on capital contribution
  • Remuneration or salary to partners
  • Profit or loss sharing ratio among partners
  • Any other amount payable to partners
  • Rights, claims, interests, responsibilities and liabilities of partners
  • Clauses related to admission, retirement or death of partners Note- Partnership Deed shall be signed by all the partners along with witnesses signatures.
• Pay stamp duty for the Partnership deed and other applicable fees. (Stamp duty varies from state to state)
• Send the signed application and the partnership deed for registration to the concerned Registrar of Firms.
• The Registrar shall verify the details and if satisfied, shall issue a Certificate of Registration of Partnership Firm.
• The name of firm then, shall be recorded in the Register of Firms.

Documents required to register Partnership firm:

• Address proof of partners- Aadhar card, Voter id, Driving license, passport, etc.
• Address proof of place of business- Utility bills like electricity bill, water bill, etc. not older than 2 months (in case premises are owned) and Rent or Lease agreement along with No Objection Certificate from the owner of premises (in case premises are taken on rent or lease) and Sale deed (in case the premises are owned by one of the partners)
• Consent of partners to act as partners of the firm
• Signed and stamped partnership deed.
• NOC from the owner of premises of LLP mentioning the name of proposed LLP (in case rented/ leased property)
• Subscriber's sheet along with consent of designated partners (to act as partners) in Form-9 Note:Address proof of partners and of registered office of LLP should not be older than 2 months and should be legible.

Notes-

• Applicant is required to self- attest all the documents.
• Ensure that the documents are clear and legible.