Partnership Firm Registration in India

A Partnership Firm is one of the simplest and most popular business structures in India, especially for small and medium-sized businesses. It is governed by the Indian Partnership Act, 1932. Two or more people can start a business together under a partnership by signing a Partnership Deed.

✅ Types of Partnership Firms

  1. Registered Partnership Firm – Registered with the Registrar of Firms (gives more legal rights).

  2. Unregistered Partnership Firm – Not registered, but still valid for operations (limited legal benefits).

🛠 Process of Partnership Registration in India

  1. Drafting of Partnership Deed – Agreement between partners mentioning profit-sharing ratio, rights, and duties.

  2. Application Filing – Submit application with Registrar of Firms (Form 1).

  3. Payment of Fees & Stamp Duty – As per state laws.

  4. Verification by Registrar

  5. Issuance of Certificate of Registration (for registered firms).

📂 Documents Required for Partnership Registration

For Partners

  • PAN Card of all partners

  • Aadhaar Card / Voter ID / Passport / Driving License

  • Passport Size Photographs

For Partnership Firm

  • Partnership Deed (signed by all partners)

  • Firm Name Proof (if required)

  • GST Registration (if applicable)

For Business Place

  • Electricity Bill / Water Bill / Property Tax Receipt

  • Rent Agreement (if the office/shop is rented)

  • NOC from the property owner

🎯 Benefits of Partnership Firm Registration

  • Easy to start with low compliance

  • Shared responsibilities among partners

  • Minimum two partners required

  • Suitable for small and medium businesses

  • Easy bank account opening & GST registration

  • Low cost of formation compared to companies

💰 Partnership Firm Registration Price in India

TypeGovernment Fees + Professional FeesApprox. Total Cost
Unregistered Partnership Firm₹1,500 – ₹2,500From ₹2,499/- onwards
Registered Partnership Firm₹3,000 – ₹4,500From ₹3,999/- onwards

(Note: Final cost may vary depending on state stamp duty & professional charges.)

📊 Comparison: Partnership Firm vs LLP vs Private Limited Company

FeaturePartnership FirmLLP (Limited Liability Partnership)Private Limited Company
Legal StatusNot a separate legal entitySeparate legal entitySeparate legal entity
Liability of OwnersUnlimited (partners are personally liable)Limited to the contribution madeLimited to the shares held
Minimum Members2 Partners2 Partners2 Directors & 2 Shareholders
Maximum Members20 PartnersNo limit200 Members
RegistrationOptional (Not compulsory)Compulsory (MCA Registration)Compulsory (MCA Registration)
Compliance CostVery LowModerateHigh
Fundraising / InvestmentDifficultLess attractive for investorsEasy to raise funding from VCs/Investors
TaxationTaxed as Partnership Firm30% (same as Company Tax Rate)22% (if opting for new regime)
CredibilityLowMediumHigh
Best Suited ForSmall & family-run businessesSmall to medium enterprisesStartups & growing businesses

🎯 Quick Recommendation

  • ✅ Choose Partnership Firm if you want a low-cost, simple structure for a small business.

  • ✅ Choose LLP if you want limited liability with less compliance than a company.

  • ✅ Choose Private Limited Company if you want to raise investment, build brand value, and scale up.

Frequently Asked Questions