Partnership Firm - Build Your Business Together
Starting a business with one or more partners? A Partnership Firm is one of the most popular and trusted business structures in India for two or more individuals coming together to share profits, risks, and responsibilities. At Smoothrun, we offer expert registration and legal support to help you launch your partnership firm quickly and compliantly.
Partnership Firm Registration In 4 Easy Steps
What is included in Partnership Firm Registration package?
- Drafting of Partnership Deed
- PAN & TAN Application
- Firm Registration
- MSME (Udyam) Registration
- GST Registration
- Compliance Guidance
Benefits of Partnership Firm Registration
Why Choose a Partnership Firm?
A Partnership Firm is a business structure where two or more individuals come together to manage and operate a business with shared profits, responsibilities, and liabilities. This structure allows individuals to pool their resources, skills, and expertise to run a business efficiently.
Easy to Establish
Partnership firms are simple and quick to set up with minimal regulatory formalities compared to other business structures.
Lower Compliance
Compared to other corporate structures like Private Limited Companies, a Partnership Firm has fewer legal obligations.
Flexibility
Partners have the freedom to define the roles, responsibilities, profit-sharing ratios, and operational guidelines through a Partnership Deed.
Tax Benefits
The business income is directly passed onto the partners, and each partner is taxed individually based on their share of the profits.
Shared Decision
With partners collaborating in management, decisions can be made quickly, and workloads can be divided with each other.
Minimal Capital
There is no minimum capital requirement for starting a partnership firm, making it an accessible option for small businesses.
Documents required for Partnership Firm Registration
Aadhar Card, Voter ID of all the partners
Utility Bill, Bank Statement, etc of the partners
Photographs of the partners
Partnership Deed signed by all partners
Registered office proof of the business address
Checklist for Partnership Firm Registration in India
- Business Name Selection
- Minimum of 2 partners required to form a Partnership Firm.
- At least one of the partners must be a resident of India.
Business Comparision
| Feature | Private Limited Company | Limited Liability Partnership | Sole Proprietorship | Partnership Firm | One Person Company (OPC) |
|---|---|---|---|---|---|
| Legal Status | Separate Legal Entity | Separate Legal Entity | No Separate Legal Entity | No Separate Legal Entity | Separate Legal Entity |
| Liability | Limited to Shares | Limited to Contribution | Unlimited | Unlimited | Limited to Shares |
| Minimum Members | 2 | 2 | 1 | 2 | 1 |
| Maximum Members | 200 | Unlimited | 1 | 20 (unregistered firms) | 1 |
| Compliance Requirements | High | Medium | Low | Medium | Medium |
| Taxation | Corporate Tax Rates | Firm Tax Rates | Individual Tax Rates | Firm Tax Rates | Corporate Tax Rates |
| Funding Options | Equity & Loans | Loans | Limited | Limited | Limited |
| Transfer of Ownership | Easily Transferable | Restricted | Not Applicable | Difficult | Restricted |
| Annual Filings | Mandatory | Mandatory | Not Required | Not Required | Mandatory |
| Perpetual Succession | Yes | Yes | No | No | Yes |
| Ideal For | Startups & Growing Businesses | Professionals & Small Businesses | Small Businesses | Small/Family Businesses | Individual Entrepreneurs |
What our Client's Say
SmoothRun is used by hundreds of founders to start, operate and grow their business.
We are Pune’s one of highest rated service provider, we are known for completing Business incorporations and other compliance services in record time.
Vrushali Yevle
“
Kunal Singh
“
Prashant Jagtap
“
What our Client's Say
SmoothRun is used by hundreds of founders to start, operate and grow their business.
We are Pune’s one of highest rated service provider, we are known for completing Business incorporations and other compliance services in record time.
Vrushali Yevle
“
Kunal Singh
“
Prashant Jagtap
“
Frequently Asked Questions
A minimum of two partners is required to form a partnership firm. The maximum number allowed is 50 under current laws.
No, it’s not mandatory to register a partnership firm. However, a registered partnership offers better legal protection and the ability to sue or be sued in the firm’s name.
We typically complete the partnership deed and registration process within 5–10 working days, depending on documentation and state regulations.
A Partnership Deed is a legal agreement between partners that defines roles, responsibilities, profit-sharing ratios, dispute resolution mechanisms, and other terms of the business.
Yes. After the partnership is established, we apply for a separate PAN in the name of the firm for tax purposes.
GST registration is mandatory if your annual turnover exceeds ₹20 lakhs (₹10 lakhs for special category states) or if you’re involved in inter-state supply or e-commerce.
Partnership firms are taxed as separate legal entities at a flat rate of 30% plus surcharge and cess, and partners can receive a remuneration and interest which is tax-deductible.
Yes, SmoothRun provides seamless conversion services to help you transition your partnership firm into an LLP or company as your business grows.
Audit is not mandatory unless the firm exceeds the turnover limit of ₹1 crore (for businesses) or ₹50 lakhs (for professionals).
With expert Chartered Accountants and legal professionals on board, we make your business setup process easy, transparent, and fully compliant with Indian laws.
