How to Register Partnership Firm

Choose A Name for Firm

The partners are free to chose desired name for the partnership firm registration. The proposed name can be given easily as unlike restriction in LLP registration.

Preparation of partnership deed registration

A partnership deed is a written agreement between two or more partners willing to undertake business jointly. The deeded is consist of all the mutual terms , legal terms , profit sharing ratio, kind of partners , admission of new partner , nature of business etc.

• Name of Firm
• Nature of business of firm
• Date of commencement of business
• Duration of partnership (whether for a fixed period/project)
• Capital amount introduction by partners
• Profit sharing ratio among the partners

Additional Clauses to be taken in to account for firm registration

• Salary to be paid to working partners
• Interest on capital of partners
• Division of work
• Role and responsibilities of partners
• powers and obligations of all the partners

Decision of Partnership Firm registration

Issues with Unregistered partnership firm

Where in case partners chooses to not to register a partnership firm in that case there may be some disabilities which are extremely inconvenient.

1. An unregistered firm cannot file a suit against a  third party to enforce a right arising from a  contract.
2. The unregistered partnership cannot file suit in  the firm name
3. The partner cannot claim his rights from the fellow  partners arising out of the partnership deed.
4. Non-Registration Of The Partnership Firm Has No Legal Bearing On The Criminal Case 

Documents required for Partnership Firm Registration?

Following are key documents needed for the partnership firm registration. A written document is needed to undertake business jointly between two or more partners.

Following documents needed  for a firm registration. 

For Partners

1. PAN Card
2. Address Proof (Passport / Driver’s License / Voter’s ID / Adhar )
3. Photo

Address Proof of Business

1. Latest Light Bill
2. Rent Agreement / NOC of Owner

Partnership firm registration form is Form A

Taxation of Partnership Firm

For Financial year FY 2017-18 below is taxable

• Income Tax at a flat rate of 30% is levied on Partnership Firms and LLP’s.
• Computation of taxes as per Income Tax Slab Rates is not allowed as the benefit of Slab Rates is only available to Individuals and HUF’s.
• Education Cess @ 2% and SHEC @ 1% would also be required to be paid.
• Remuneration and interest received by partners shall be taxable in hand of partners under PGPB

Government Partnership firm registration fees in Maharashtra is Rs. 1623/-

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