Registered Partnership
A Registered Partnership is a formal business structure governed by the Indian Partnership Act, 1932. It involves two or more individuals coming together to run a business with a shared profit motive. While registration is not mandatory, a registered partnership offers legal advantages, making it a preferred choice for many businesses.
Benefits of a Registered Partnership
✅ Legal Recognition – Enjoys recognition under Indian law.
✅ Dispute Resolution – Can enforce contracts and sue in a court of law.
✅ Easier Loan Approvals – Banks and financial institutions prefer registered firms.
✅ Business Credibility – Enhances trust among stakeholders.
✅ Protection Against Fraud – Helps in safeguarding partner interests.
Step-by-Step Process for Partnership Registration
Step 1: Draft the Partnership Deed
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Name of the firm
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Details of partners (name, address, age, capital contribution)
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Business objectives
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Profit and loss sharing ratio
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Roles and responsibilities
Step 2: Apply for PAN & TAN
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Obtain PAN for the partnership firm.
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Apply for TAN if TDS deductions are applicable.
Step 3: Register with the Registrar of Firms
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Submit the partnership deed along with Form 1.
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Pay the prescribed registration fees.
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Submit notarized documents to the Registrar of Firms.
Step 4: Obtain Certificate of Registration
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Once verified, the Registrar issues a Registration Certificate.
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The firm is now legally recognized.
Step 5: Open a Business Bank Account
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Submit the PAN card, registration certificate, and partnership deed to the bank.
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Open a current account for transactions.
Tax Exemptions & Compliance Requirements
🔹 Income Tax– Registered partnerships are taxed at 30% + surcharge.
🔹 GST Registration– Mandatory if turnover exceeds ₹20 lakh (services) or ₹40 lakh (goods).
🔹 Tax Deductions– Eligible for deductions on partner salaries, rent, and other expenses.
🔹 Annual Compliance– Filing of ITR, GST returns, and TDS returns is required.
Timeline for Partnership Registration
Documents Required for Partnership Registration
📝 Partnership Deed – Signed by all partners.
📝 PAN Card – PAN of all partners & the firm.
📝 Address Proof of Firm – Rent agreement or utility bill.
📝 Identity & Address Proof of Partners – Aadhaar card, passport, or voter ID.
📝 Passport-size Photos – Recent photos of all partners.
📝 GST Registration (if applicable) – Required for businesses exceeding turnover limits.
Frequently asked questions
