A Partnership Firm is a kind of business structure in which 2 or more persons start and manage a business firm. The functions, terms and objectives of the partnership are laid down in a Partnership Deed. The partnership deed is created on a judicial stamp paper and attested by all the partners. The partners have unlimited liability and are personally liable for the debts of the partnership firm. The profits of the business are divided between the partners in accordance with their share in the firm. There can be a minimum of 2 and maximum of 20 partners in a partnership firm.
Partnership registration is opted commonly by small and medium-sized businesses with low capital investment. This type of business structure involves less legal complications, low costs and very few legal compliances. Partnership registration is optional, however, It is advisable to opt for partnership registration as it provides legal recognition and safety to the business.
The first step in partnership registration in India is filing an application for registration with the appropriate government authority. The next step involves drafting and registering the partnership deed. After partnership deed registration, the PAN & TAN for the partnership firm is obtained from the relevant authorities. The entire process of partnership registration can take up to 8-15 days, subject to processing of applications by the government.
To register a general partnership, the required documents include the following:
- Application for Partnership registration
- Original copy of Partnership Deed signed by partners
- Affidavit stating the intention of partners to work together
- Proof of address, including rental or lease agreement or electricity bill
- Proof of Identification, including Aadhar Card, Voter ID card, PAN etc.