Partnership Firm Registration

Key points

A partnership needs at least 2 partners, and the number is capped by law.
Partners are personally liable for the firm's debts, jointly and severally.
The partnership deed sets out profit sharing, capital, roles and exit terms.
The firm is taxed as a firm and gets its own PAN.

Is registration compulsory?

Registration with the Registrar of Firms is optional, but an unregistered firm faces restrictions when it needs to take legal action against a third party or a partner. Most firms choose to register.

The process

1Draft the partnership deed and execute it on stamp paper as required by your state.
2Apply for the firm PAN.
3Apply to the Registrar of Firms (if you register the firm).
4Register for GST, Udyam and other licences as your business requires, and open a current account.

When to consider an LLP instead

If you want limited liability, an LLP offers it with similar flexibility. A partnership can be converted into an LLP later.

Common questions

Is a partnership deed mandatory?

A written deed is not required by law to form a partnership, but it is strongly advisable and is needed for registration and for banks.

Get a quote

General information, not professional advice. Rules and timelines change, so we confirm the current position for your case before filing. Government fees are separate from our service charge and are quoted before work begins.