Partnership Firm Registration

Our services

What we provide for Partnership firms

Drafting of the Partnership Deed.
Registration of Firm with the Registrar of Firms.
Reconstitution, amendments in the Firm and amending the same with the Registrar.
Dissolution of partnership firm.
Obtaining post-incorporation registrations like GST, S&E, PT, PF, ESI, Udyog Aadhar / MSMED, and any other applicable registration.
Filing Income Tax returns of the Firm and Partners.
Direct Tax and Indirect Tax consultation.
Accounting and Payroll processing services, etc.

Let us discuss the Partnership firm in brief in the form of FAQs.

Definition

What is a Partnership Firm?

A partnership firm is governed by the provisions of the Indian Partnership Act, 1932. Section 4 of the Partnership Act, 1932, defines “Partnership” as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Persons who have entered into partnership with one another are called individually “partners” and collectively “a firm”, and the name under which their business is carried on is called the “firm-name”.

Therefore, a Partnership is a relation between two or more persons who join hands to form a business organisation to earn a profit. The persons who join hands are individually known as ‘Partner’ and collectively a ‘Firm’. The name under which the business is carried on is called ‘firm name’. ABC & Co, Ramkrishna & Co, etc., are the names of partnership firms.

About registration

Registering a Partnership Firm

To form a Partnership firm a minimum of two persons are required, and unlike a Company or LLP, a Partnership firm doesn’t have a separate legal entity. The Partnership firm can be registered or unregistered and the option is left to the partners. However, it is advisable to register a firm under the Partnership Act, 1932, to avail legal benefits and the benefit of safeguards provided in the Partnership Act, 1932. A firm can be registered with the Registrar of Firms of the respective jurisdiction.

Documents required

Documents for forming and registering a Partnership Firm

Notarised and certified copy of the “Partnership Deed” on Stamp Paper.
Application for Firm Registration in Form 1.
PAN Card of all the Partners.
ID proof and address proof of all the Partners (Aadhaar Card / Voter ID / Driving Licence / Passport).
Ownership documents along with property tax paid receipt if “Business Premises” is self-owned by any of the partners.
Rental / Lease Agreement if business premises is on rent along with electricity bill.

Partnership Deed

Information required to draft a Partnership Deed

A ‘Partnership Deed’ is a document that lays down terms and conditions for starting and running the partnership firm. This agreement can be oral or written. However, it is always advisable to insist on a written agreement among partners in order to avoid future controversies. The following information is required to draft a ‘Partnership Deed’:

Choose a name for the Firm. The name should not be identical or similar to an existing firm, and also ensure that “your name” does not infringe on a registered trademark.
Brief about the nature of business of the firm.
Place or principal place of business of the firm.
The names, DOB, father’s name, and permanent addresses of the partners.
Date of commencement of business.
Capital contribution by each partner.
Profit-sharing ratio among the partners.
Remuneration, interest on capital terms.
Duties, roles, responsibilities, management and rules to be followed in case of retirement, death or admission of a new partner.
Any other matters to be included in the deed.

Other registrations

Registrations / licenses to obtain after formation

Sl. No	Type of Registration	Requirement / Applicability
1	Karnataka Shops and Establishment Registration	Every shop or establishment carrying trade, business or services within the notified areas of the State of Karnataka shall compulsorily, within 30 days from commencement of business, register under “The Karnataka Shops and Commercial Establishments Act, 1961” and obtain Registration Certificate.
2	GST Registration	Subject to specific provisions depending on the nature of the business activity under the “GST Act 2017”, GST Registration can be obtained voluntarily or after crossing the threshold limit prescribed. However, it is pertinent to note that the categories prescribed in Section 24 of the CGST Act, 2017 are required to be mandatorily registered.
3	Karnataka Professional Tax Registration	[A] PT Employer Registration — Certificate of Enrollment (EC): Required to be obtained from the Profession Tax Officer within thirty days from the date of commencement of business. This registration is mandatory for the business entity whether they employ any people or not. [B] PT Employee Registration — Certificate of Registration (RC): If the entity employs any employee whose salary is Rs. 15,000 or more, within thirty days of becoming liable to pay tax, it should obtain “PT Employee Registration — Certificate of Registration (RC)”.
4	Import Export Code (IEC)	If the entity carries on import or export activity, IEC Code is mandatory. Further, to avail export-promotion benefits like MEIS, SEIS, etc., IEC Code is mandatory.
5	Udyog Aadhaar	If the business entity wants to avail the benefits available to MSMEs being Manufacturer or Service provider, then it can obtain MSME Registration / Udyog Aadhaar.
6	Tax Deduction Account Number (TAN)	Compulsory.
7	Permanent Account Number (PAN)	Compulsory.
8	Other Registration	Other registrations may be applicable depending on the nature of business activity or types of products or services dealt with by the Partnership Firm that are not addressed above.