Partnership firm registration in India deed to Registrar

What a partnership is and what the law says

A partnership is the relationship between persons who agree to share the profits of a business carried on by all of them, or by any of them acting for all (section 4). It arises from the agreement itself, so a firm exists once the partners agree and start the business, whether or not there is a written deed and whether or not it is registered.

Who can form a partnership firm

At least 2 partners: A single person cannot form a partnership; one owner means a proprietorship, OPC or company.

• At least 2 partners
• At most 50 partners
• Competent to contract
• A lawful business for profit
• No citizenship condition under the Act
• Not needed to start trading

Unregistered firm, registered firm or LLP

The three routes people usually weigh against each other.

• Unregistered firm
• Registered firm
• LLP

What the government charges

Most of these amounts are set by the state, so we confirm each one for your state before anything is filed.

• Stamp duty on the partnership deed: State Stamp Act
• Registrar of Firms fee: State rules under section 71
• Notary charges: Market rate
• PAN for the firm: Income Tax Department
• GST and Udyam registration: Central government portals

Documents required

What the Registrar and your bank typically ask for. Your state may add small requirements.

• Partnership deed on stamp paper
• Registrar's application form, signed by all partners
• PAN of each partner
• Aadhaar or another official address proof of each partner
• Passport-size photographs

How it works step by step

The official sequence, with where StampMitra helps.

Timeline, validity and ongoing duties

Topic, What applies

• Deadline to register: No deadline under the central Act. Maharashtra expects registration within one year of starting and charges a late
• Registrar processing time: Differs by state, and no statutory period is set. We tell you what to expect for your state.
• Validity of the certificate: No expiry and no annual renewal.
• Changes in partners, name or place: Notify the Registrar (sections 60 to 63). Maharashtra requires it within 90 days; elsewhere the Act
• Income tax: The firm files its own return every year. We confirm the form and the due date for the year when you ask us to file.
• GST: Needed only if your turnover crosses the limit for your state and supply type, or your business falls in a compulsory category. We

What happens if you do not register

There is no penalty for staying unregistered. The consequence is limited to the right to sue under section 69.

• A partner sues the firm or another partner over a right under the deed or the Act: Not allowed unless the firm is registered and the person
• The firm sues a third party on a contract: Not allowed unless the firm is registered.
• The firm is sued and wants to claim a set-off: The bar covers set-off claims as well.
• Suits for dissolution of the firm, or for accounts of a dissolved firm: Exception: the bar does not apply.
• Suits or set-off up to ₹100 of a kind a Small Cause Court can hear: Exception: the bar does not apply.
• Firms with no place of business in India, or only in areas excluded under section 56: Exception: the bar does not apply.

Common reasons applications come back

Signatures missing or not matching on the deed and the Registrar's form

• Signatures missing or not matching on the deed and the Registrar's form
• Name, address or date of joining differs between the deed and the form
• Stamp duty short, or the wrong stamp paper used
• Deed signed after the commencement date written in it
• Address proof in a different name, or a rented premises without the owner's no-objection letter
• Firm name identical to an existing registered firm, or using words the state bars, such as Royal or words implying government approval

What StampMitra does for you

StampMitra is a filing assistance platform. We are not the government and not a law firm.

• Deed drafting
• PAN and registrations
• Registrar of Firms guidance
• Bank account help
• Returns and accounts
• Itemised costs

How it works

1. Draft and sign the partnership deed Agree capital, profit sharing and duration, and sign the deed on stamp paper at your state's duty.
2. Get the firm PAN Apply for PAN in the name of the firm.
3. File the statement with the Registrar of Firms Submit the section 58 statement signed by all partners with the state fee, if you choose to register.
4. Receive the certificate The Registrar enters the firm in the Register of Firms and issues the certificate.
5. Open the bank account and register for tax Open a current account and apply for GST, Udyam or a shop licence as needed.

Frequently asked questions