Overview
A partnership is governed by the Indian Partnership Act, 1932 and a written partnership deed between partners. It is quick to set up but partners carry unlimited personal liability.
Key points
- Minimum two partners and a written partnership deed
- Registration with the Registrar of Firms is optional but strongly advised
- Partners have unlimited liability
- Simple compliance, with income tax filing for the firm
- Not suitable for raising equity funding
Typical documents required
- PAN and Aadhaar of all partners
- Address proof of the business premises
- Partnership deed on stamp paper
- Photographs of partners
How we work
Partnership deed drafting
Stamping and execution
Registration with the Registrar of Firms
PAN and bank account for the firm
Frequently asked questions
Is a partnership firm registration mandatory?
Registration is optional, but an unregistered firm cannot enforce certain rights in court.
Is an LLP better than a partnership?
An LLP gives partners limited liability, so it is usually safer for growing businesses.
This page gives general information and is not legal or tax advice. Requirements change, so confirm current rules for your situation with us before acting.