Partnership Firm Registration

A Partnership firm is an organization which is formed with two or more persons to run a business with a view to earn profit. Each member of such a group is known as partner and collectively known as partnership firm. Here two or more persons work together, pool funds and share the profits earned (or bear the losses incurred).  These firms are governed by the Indian Partnership Act, 1932.

Partnership firms in India are governed by the Partnership Act, 1932. Section 4 of the Act defines Partnership as - "An agreement between persons who have agreed to share profits of the business carried on by all or any one of them acting for all."

The new Companies Act 2013 has prescribed the maximum number of members in case of a partnership firm should not be more than 100 in case of partnerships. As per the previous Companies Act 1956, the maximum limit in case of partnerships was 10 and 20 for banking business and other businesses respectively.

Characteristics of Partnership Firm:-
Number of Partners : Minimum number of person required to start a partnership firm is two and maximum limit is 10 in case of banking business and 20 in case of all other types of business.

Contractual relationship : A written agreement known as partnership deed which is signed by all the partners, binds them in a contractual relationship.

Voluntary Registration : Registration of partnership firm is not compulsory. Since the registration provides various benefits to the firm thus it is desirable.

Competence of Partners : Every partner must be competent enough to enter into the partnership agreement. He should not be minor (in some cases minor can be admitted only to the benefits of the partnership), lunatic or insolvent.

Sharing of Profit and Loss : In partnership firm all the profits and losses are shared by the partners in any ratio as agreed. If it is not given then they share it equally.

Unlimited Liability : Liability of partners of a partnership firm is unlimited. They are jointly held liable for the debts and losses of the firm.

Legal Status : Partnership firm has no distinct legal status separate from its partners.

Transfer of Interest : No partner can transfer its interest in the firm to anybody without the consent of other partners.

Principal - Agent Relationship: This relationship is based on mutual trust and faith among the partners in the interest of the firm. Business of the firm may be carried on by all the partners or any one of them acting for all. According to this, every partner is an agent when he is working on behalf of other partners and he is the principal when other partners act on his behalf.

Limitations of a Partnership Firm
  • Liabilities. In addition to sharing profits and assets, a partnership also entails sharing any business losses, as well as responsibility for any debts, even if they are incurred by the other partner.
  • Loss of Autonomy.
  • Emotional Issues.
  • Future Selling Complications.
  • Lack of Stability.
Registration of a Partnership Firm

Registration of Partnership firm under Indian Partnership Act, 1932 Documents required

I) Form No.1 as Prescribed

ii) Attested Copy of the Partnership Deed One Set
iii) Ownership Prove of Principal Place of Business

Amendment in the Registered Partnership Firm

The Following Forms as Prescribed Under Indian Partnership Act 1932 Accepted for Various Amendment in Original Form-a and Form-C.

S. No.Form No.Purpose
1Form No. IIFor Change of Principle Place of Business & Change in the Name of the Firm.
2Form No. IIIFor Change of the Other Then Principle Place of Business.
3Form No. IVFor Change of Name of the Partners & Permanent Address of the Partners.
4Form No. VFor Change of Constitution of Forms & Addition or Retirement of Partner.
5Form No. VIFor Dissolution of the Firm
6Form No. VIIFor Minor Partner Attains the Age of Majority.

Registration Cost 

Registration Cost for Partnership Firm business depends upon the type of Registration/Required for the business. Following are some registration that can taken by a Partnership Firm:-

  • Upload the required documents & information to our web portal by Clicking Register Now Link Below.

  • Choose the appropriate Package and Pay online with various payments modes available.

  • On placing the order, your application will be assigned to one of our dedicated professionals.

  • One of our professional will prepare the required form for the formation of the entity.

  • Obtain government registration certificate for your business entity.

  • Registration certificate shall be provided to you over the mail.