Partnership Firm
A partnership firm is the simplest way for two or more people to run a business together under a shared deed. We draft the deed, handle registration, and keep the firm’s filings current.
|800+ businesses served since 2020
Two or more people, one shared business
A partnership firm is an arrangement between two or more people who agree to run a business together and share its profits, governed by the Indian Partnership Act, 1932. The partnership deed — the document that sets out how the partners work together — is the foundation of the whole arrangement.
Registering the firm with the Registrar of Firms isn’t compulsory everywhere, but an unregistered firm loses the right to sue third parties or enforce the deed in court, which is reason enough for most partners to register.
- The firm’s name, business and registered office
- Capital and profit-sharing ratio between partners
- Roles in management and administration
- How disputes between partners get resolved
- The firm’s duration, if not open-ended
Two or more people building a business together
Partners pooling capital and skills
The most common route for two or more people starting a business together without the compliance load of a company.
Formalising a shared enterprise
Family-run businesses use a partnership deed to set out ownership and profit shares clearly, avoiding disputes later.
Firms built around shared expertise
Professionals combining their practice under one firm name, sharing clients, costs and profits by agreement.
Deed to ongoing filings
Partnership deed drafting
Capital, profit share, roles and dispute resolution, set out clearly and agreed by every partner.
Registration with the Registrar of Firms
Filed along with the required identity and address documents for each partner.
PAN and bank account
Getting the firm operational with its own PAN and current account.
GST and other registrations
Where the firm’s turnover or activity requires it, we handle the relevant registrations too.
Annual tax filing
Income tax return for the firm, prepared and filed each year.
Conversion to LLP or company
When the business outgrows a partnership, we handle converting it to an LLP or private limited company.
Four steps to a registered firm
We draft the deed
Terms agreed and documented with every partner.
We register the firm
Filed with the Registrar of Firms in your state.
PAN and bank follow
Firm PAN obtained and a current account opened.
Filings run each year
Tax returns and any state-level filings kept current.
Documents you’ll need
A quick checklist so we can move fast. Don’t have one handy? We’ll tell you exactly what works.
Questions companies ask first.
Is it compulsory to register a partnership firm?
Registration isn’t compulsory everywhere, but an unregistered firm cannot sue a third party or enforce the partnership deed in court — which is why most partners choose to register.
Can a partnership firm be converted into an LLP or company later?
Yes, the Indian Partnership Act sets out how a firm can convert into a Limited Liability Partnership or a private limited company as the business grows. We handle that conversion when the time comes.
Are partners personally liable for the firm’s debts?
Yes. Partners in a partnership firm carry unlimited personal liability for the firm’s debts, which is the main reason growing businesses often convert to an LLP or company.
Tell us what you need.
A short call to understand where you stand and how we would run this for you. No obligation.
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