A Partnership Firm is a business entity formed with a purpose of making profit from the business by two or more parties combined and with a formal legal agreement called Partnership Deed. In a partnership firm risks, responsibilities and even the profit or loss would be shared in an agreed proportion to the parties involved (partners) in the business. While two or more parties’ combines together to form a partnership, the expertise and capabilities of each party and more capital combined hence to take business to success.
Any registered or unregistered partnerships in India are protected by Partnership Act 1932. The act defines the structure of a partnership firm by providing all the necessary provisions to run the same. An unregistered partnership has a few shortcomings in the protection of Partnership Act 1932, it can overcome by registering firm any timeonce the partnership deed is executed.
Registered owner of a Trademark has the right to create, establish and protect the goodwill of their products/services. The registered owner of a trademark can stop anyone else from unlawful usage of his Trademark. With Registered Trademark, one can sue a petition for stoppage or dilution of infringed use or to claim for the damages caused by the infringement legally.
The word partnership itself defines the formation of the business by combining two or more individuals there with called as partners for the business. Therefore partners share the responsibility to work and manage the business together. They can divide duties and responsibilities to one or more partners by mentioning the same in the Partnership Deed.
While forming a partnership firm, the partnership deed enumerates pre-defined business objectives and activities, which are the main objective to commence business. A partnership can be formed for a particular time period or to complete a specific project or for a particular objective and once the same is completed the partnership will automatically dissolved. Otherwise, it can be continued as long as the partners ‘WILL’.
Returns from the partnership firm for each partner may be decided mutually with regards with the pattern of investment, roles of administration or day to day activity defined to person to person etc. The working partner/s receives remuneration in addition to the interest on capital and share of profit as per partnership terms.
Identification plays an important role in making a business outstand in competitive market, build a unique and distinctive name for your business hence enhance your brand value. Consumers should identify activity of your business from the brand name so that they can relate your business with its offerings.
Even though it meets all the above criteria, once again make sure that the brand name to be short and simple to pronounce or spell.
Fill up the registration form
BookMyTM is Here to Help
Get your Partnership firm registered.
Answer: No—while the Partnership Act recognizes both registered and unregistered partnerships, registering the partnership deed does provide stronger legal protection.
Answer: Yes, a partnership firm can register under the MSME Act.
Answer: There is no minimum capital mandated by law. Partners determine capital contributions among themselves, which can include cash, premises, goodwill, etc.
Answer: The application is submitted to the Registrar of Firms (RoF) in whose jurisdiction the business is located.
Answer: Only a registered partnership can:
File lawsuits in court (against partners or third parties).
Claim mutual adjustment of debts.
It’s recommended to register either at inception or later.
Answer:
Minimum of 2 persons.
All must be competent to contract (no minors).
Partners should be Indian residents; NRIs/PIOs can join with government approval.
Minors may be nominated for profit-sharing but cannot be full partners.
Answer:
Cannot file suits for enforcement of rights.
Third parties can sue to enforce claims.
Unregistered status limits legal remedies for the firm and partners.
Answer: The deed should outline:
Business objectives and activities.
Capital contributions and profit‑sharing ratio.
Management and administration details.
It must be properly stamped and notarized.
Answer: Stamp duty depends on the firm’s capital and varies by state under the applicable Stamp Act.
Answer: After the partnership deed has been executed and registered with the Registrar of Firms. The physical PAN card is delivered to the registered business address.
Answer: Typically, 12 to 14 working days—subject to state regulations and government processing time.
Maintain books of accounts and financial statements.
File income tax returns by the due date each financial year.
Obtain GST registration if annual turnover exceeds the exemption threshold.
