A partnership is the simplest way for two or more people to run a business together. It is created by a partnership deed, and registration with the Registrar of Firms — while optional in law — matters a great deal in practice: an unregistered firm cannot enforce its contractual rights through the courts against third parties, which becomes painful the first time a customer refuses to pay.
Who needs this
- Small trading and service businesses run by two or more people
- Family businesses that do not need corporate structure
- Ventures testing an idea before incorporating a company or LLP
Documents required
This is the usual list. Depending on your state and your specific facts, an authority may ask for more — we tell you at the scope stage rather than midway through.
- PAN and Aadhaar of all partners
- Address proofs and photographs of partners
- Proof of the place of business and a no-objection certificate
- The partnership deed on stamp paper of the value prescribed by the state
How we handle it
1. Deed drafting
We draft the deed around your real arrangement — capital contribution, profit and loss sharing, drawings, admission and retirement of partners, and what happens in a dispute.
2. Stamping and execution
The deed is executed on stamp paper of the correct value for your state and notarised.
3. Registration
Application is made to the Registrar of Firms with the prescribed statement and fee.
4. PAN, GST and bank
Firm PAN is obtained and, where applicable, GST registration and the current account are set up.
Fees and timeline
Partners carry unlimited personal liability for the debts of the firm, jointly and severally. If that risk concerns you, an LLP gives a similar internal structure with liability protection.
We quote after a short conversation rather than publishing a single number, because the honest answer depends on your state, your turnover and your category. Call +91 98999 00300 or send the details through the enquiry form.
Common questions
Is registration compulsory?
Not strictly, but an unregistered firm cannot sue to enforce a contract, and a partner cannot sue the firm or other partners. In practice, register.
Can a partnership be converted into an LLP?
Yes, and it is a defined statutory process that preserves continuity of the business.
What should the deed cover that people usually forget?
Death or retirement of a partner, admission of a new partner, treatment of goodwill, authority to borrow, and a dispute resolution clause. These are cheap to write in and expensive to argue about later.
This page is general information, not advice on your facts. Rules, rates and due dates change. Government fees are payable to the concerned authority and are separate from our professional fees.