Partnership Company Registration in India

Ready to set up your Partnership Firm? We’ve got you covered! Our Company Registration  Assisted service is designed for affordability, with clear, upfront pricing and zero hidden charges. Experience a smooth, stress-free registration process with quick turnaround times.

Ideal for Small Businesses | Quick Process | Expert Assistance

  • Suitable for 2 or more partners
  • Drafting of Partnership Deed
  • PAN & TAN Registration
  • GST & MSME Registration Support
  • Expert Legal Guidance
  • 100% Online Process – No Office Visit Required

Partnership Company
Rs. 3,999.00/- All Inclusive

Disadvantages of Partnership Compared to LLP

Unlimited Liability

In a traditional partnership, partners are personally liable for business debts. In an LLP, liability is limited to the extent of their contribution.

No Separate Legal Entity

A partnership firm is not considered a separate legal entity from its partners. An LLP is a separate legal person under law.

Lower Credibility

LLPs are registered with the Ministry of Corporate Affairs (MCA), offering more transparency and trust among investors, banks, and clients.

Difficult to Raise Capital

Partnerships face challenges in attracting investments or loans due to less regulatory oversight and lack of corporate structure.

No Perpetual Succession

A partnership dissolves upon the death, insolvency, or retirement of a partner. An LLP continues to exist independently of changes in partners.

Limited Scope for Growth

LLPs are more scalable and can be easily converted into private limited companies, unlike traditional partnerships.

Requirement ForPartnership Company Registration

  • Minimum Two person

An Partnership company must have at least 2 Person, Minimum of one of the company’s directors must be a resident of India.

  • No Minimum capital

There is no minimum capital amount for a Partnership company. You can start private limited with minimum capital of 1 Re.

  • Registered address of company

The Proposed Partnership must have an address at any location within the State where you want to do private limited company registration.The registered office of a Partnership firm does not have to be a commercial space.

  • PAN Card of the Firm

A separate PAN must be obtained in the name of the partnership firm from the Income Tax Department

DocumentRequired

Partner’s PAN

Self attested pan card front & back copy of all Partner’s to be appointed

Partner’s Photograph

Passport size professional photograph of all Partner’s to be appointed

Identity Proof

Adhaar Card / Voter ID / Passport / Driving License of the all Partner’s to be appointed

Partner’s Address Proof

Additional Address proof with Present address( Mobile bill ,Telephone bill , Electricity bill , latest Bank Statement)

Process To Follow For Registration

Registering your partnership company is simple and streamlined. Just follow these four easy steps to get started legally, build trust, and operate your business with a registered identity.

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1. Start Application

Share basic info about your business.

2. Add Documents

Attach ID, address, and business proof.

3. Verify and Approve

We check everything before submission.

4. Launch with License

Get your certificate and start operations.

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Explore OurPackages

Basic

Rs. 3,999/-

  • Partnership Deed
  • PAN & TAN
  • GST Registration
  • MSME Registration
  • 1 Year GST Returns
  • 1st Year Annual Filing
Get Started
Started

Rs. 9,999/-

  • Partnership Deed
  • PAN & TAN
  • GST Registration
  • MSME Registration
  • 1 Year GST Returns
  • 1st Year Annual Filing
Get Started
Pro

Rs. 14,999/-

  • Partnership Deed
  • PAN & TAN
  • GST Registration
  • MSME Registration
  • 1 Year GST Returns
  • 1st Year Annual Filing
Get Started

Difference Between Partnership & LLP

Particulars Partnership Firm LLP
Registration The registration of a partnership firm under the Indian Partnership Act is voluntary. LLP registration is mandatory.
Registering authority The firm must submit the Partnership Firm registration form and other subsequent forms to the Registrar of Firms. An LLP must submit the registration form and all the subsequent forms to the Registrar of Companies (ROC).
Annual form filing A partnership firm need not file any annual returns with the Registrar of Firms. The LLP must also file an annual statement of accounts, solvency, and yearly return with the Registrar of Companies annually.
Governing law The Indian Partnership Act of 1932 The Limited Liability Partnership Act 2008
Liability The partners have unlimited liability, which means they are personally liable for all the debts and obligations of the business. The liability of each partner is limited to the amount of money they have invested in the business.
Legal Status A partnership is an unincorporated business structure, meaning it does not have a separate legal entity from its owners. An LLP is a registered corporate entity with a separate legal existence from its partners.
Taxation Partnerships are not taxed as separate entities. Instead, each partner is responsible for paying taxes on their share of the business’s profits. LLPs are taxed as a separate legal entity, and the partners are taxed only on the income they receive as a salary or profit distribution.
Compliance LLPs have more regulatory and compliance requirements than partnerships. LLPs must file annual reports with the registrar of companies and maintain more extensive

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ComparisonChart

Basis of Comparison Company LLP Partnership Proprietorship
Overview Private Limited Company is the preferred choice of business for startups or if you plan to raise funding Limited Liability Partnership is the preferred choice for businesses who want limited liability and a separate legal entity With the introduction of LLP in India, partnership firms are losing their preference due to the added advantages offered by an LLP Since sole proprietorship is a person doing business on their own, setup is simple and cost is less but is not a legal entity
Minimum Number of Persons Required 2 2 2 1
Minimum Capital Almost Nil Almost Nil Almost Nil NIL
Promoter Liability Limited Liability Limited Liability Unlimited Liability Unlimited Liability
Applicable Law Companies Act 2013 LLP Act 2008 Partnership Act Not Applicable
Transferability Freely Transferable Limited Transferability NON Transferable NON Transferable
Registration Time 3–7 Days 3–7 Days 3–7 Days 3–7 Days
Audit Requirements Mandatory Required if turnover more than 40 Lacs Required if turnover more than 1 Crore Required if turnover more than 1 Crore
Tax Rate Companies are taxed at 22% LLP are Taxed at 30% Same as LLP Proprietorship is taxed at slab rates of individual
Investor Flexibility Can Add Investors Freely Can Add Investors as Partners Investors do not invest in Partnership firms Cannot Add Investors
Startup India Benefits Eligible for Startup India Benefits Eligible for Startup India Benefits Very Few Benefits Not Eligible

Frequently asked Questions

How many people are required to start a Partnership firm?

A minimum of two Persons i.e. partners is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.

No, a Partnership firm has no separate legal existence of its own i.e., the Partnership firm and the partners are one and the same in the eyes of law. Liability of the Partners is also unlimited, and the partners are said to be jointly and severally liable for the liabilities of the firm. This means that if the assets and property of the firm is insufficient to meet the debts of the firm, the creditors can recover their loans from the personal property of the individual partners.

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.

A partnership is not considered separate from its partners for tax purposes. Generally, this means the partnership itself does not pay any income taxes; instead, partnership income “passes through” the business to each partner, who then reports his or her share of business profits or losses on an individual federal tax return. Each partner will need to estimate the taxes he will owe at the end of the year and make four quarterly estimated tax payments.

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.

Partnership firm will have to file their annual tax return with the Income Tax Department. Other tax filings like service tax filing or VAT/CST filing may be necessary from time to time, based on the business activity performed. However, annual report or accounts need not be filed with the Ministry or Corporate Affairs, which is required for Limited Liability Partnerships and Companies.

Not necessarily. However, unless a partnership firm is registered with the registrar of firms and societies, the rights of the partners inter-se or against strangers cannot be enforced in a court of law. Only a registered Partnership firm can file a suit in any court. Hence, it is advisable for Partnership firms to get it registered sooner or later.

It is not necessary for Partnerships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criteria.

Is a partnership deed necessary to form a partnership firm?

No, it is not necessary. However it is often prudent to make a partnership deed to produce to the bank, income tax authorities and to clients with whom the partnership firm deals with

Yes, there are procedures for converting a Partnership business into a Company or a LLP at a later date. However, the procedures to convert a Partnership firm into a Company or LLP are cumbersome, expensive and time-consuming. Therefore, it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Partnership firm.

Yes. The firm and all the partners are liable for the wrongful act or fraud that causes loss or injury to any third parties.

A person may sue a partnership firm but the he has to disclose the name of all the partners who constitute the firm. However under the Income Tax Act, a firm can be assessed to tax independently of its partners. A partnership firm therefore enjoys a quasi-independent status.

Any property can be treated as the property of the firm by simply showing it as such in the book of accounts. This would constitute partnership property and all partners are joint owners of the partnership property as increased or decreased by profits in the course of business. Property belonging to an individual partner does not become the firm’s property simply by being used for the purpose of the partnership.

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.

Just like a sole proprietorship, the liability of partners in a partnership firm is also unlimited. This means, if the assets of the firm are insufficient to meet the liabilities, the personal properties of the partners, if any, can be utilized to meet the business liabilities.