Legal Definition:
Section 4 of the Indian Partnership Act 1932 :“Partnership is the relation between persons who have agreed to share the profit of business carried on by all or any one of them acting for all

General Definition:
A partnership is easy to form since no complex business formalities are required to be fulfilled. Partnership registration is not compulsory and in at the discretion of the partners whether they want to register the partnership or not. But a partnership firm cannot avail legal benefits if it is not registered, hence it is always advisable to register it.

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1. Partnership Deed

Although partnership deed can be oral, generally a partnership deed is written to avoid any future conflict. Partnership deed is created on a judicial stamp paper and has to be signed by all the partners. It contains rights and duties of the firm and the partner.

2. Documents of Partners

Pan card of partners – all partners are required to submit their pan number as identity proof. Address proof of partners – partners can submit aadhar card, driving license, passport or voter id card as address proof. Name and other details on address proof should match pan card details.

3. Documents of Firm

Pan card of firm – partners need to apply for pan of the firm. Form 49a has to be filed to apply for a pan. It should be filled online by visiting online pan service website it can be filed online if the authorised partner signs the application using a digital signature certificate. Else, the application and requisite documents have to be sent to pan processing centre, pune.

4. Address Proof of Firm

If the registered office place is rented, rent agreement and one utility bill (electricity bill, water bill, property tax bill, gas receipt etc.) Have to be submitted. Also, noc from landlord will be submitted. If the registered office place is own, utility bill has to be submitted mentioning the name of the owner. Also, a noc from the owner (owner as mentioned in utility bill) has to be submitted.

5. Additional documents in case of Registration of Partnership

In case partners wish to register the partnership firm, they need to submit partnership deed, id and address proofs of the firm as well as the partners to the registrar of partnerships. With it, an affidavit is also required to be submitted certifying that all the details mentioned in deed and documents are correct.

6. GST Registration

For obtaining a gst registration, a firm needs to submit pan number, address proof and identity & address proofs of partner. Authorised signatory will sign the application either using a digital signature certificate or e-aadhar verification.


According to the India Partnership Act 1932, there is no time limit as such for the registration of a firm. The firm can be registered on the date when it is incorporated or any such date after so. The requisite fees and fines must be paid. The procedure for such a registration is as follows

Step 1: Application for

Partnership firm can be registered by sending an application in Form No. 1. Along with the form, requisite fee and a true copy of the partnership deed also needs to be sent to the Registrar.
• Firm name and nature of business of the firm.
• Place or principal place of business.
• Names of other places where business is undertaken.
• Date of joining of each partner.
• Full names and addresses of the partners.

Step 2: Verification of Application for Registration

Each partner signing such an application must also verify the same in the manner as suggested under the Act.

Step 3: Documents to be attached to the Application for Registration

Following documents along with the prescribed fee must be submitted to the Registrar. These include:
1) Registration Application in Form No. 1
2) Duly filed affidavit
3) Certified and true copy of Partnership Deed. It must be noted that the Partnership Deed created by the partners must be on a stamp paper as the Indian Stamp Act.
4) Rental or Lease Agreement or proof of ownership of place of business

Step 4: Fee for Registration

As per section 71 of the Act, the State government is free to make rules regarding the fees to be given to the Registrar along with the other documents for registration.

Step 5 : Naming A Partnership Firm

The name of partnership firm should consider the rules mentioned in above section while choosing a name for the partnership firm. However, the firm so registered must use brackets and the word after its name. Further, if any partner is not satisfied with the order of Registrar with regards to the firm name, he may appeal to the person authorized by the State Government in this behalf.This appeal must be made within 30 days from the date of communication.

Step 6: Entry of Statement in a Register

Finally, as per section 59 of the Act, the Registrar makes an entry of the Statement in a register called the register of forms and files the Statement. This is undertaken after the Registrar is satisfied that the application of registration complies with all the necessary provisions. The date on which the Registrar records and files the Statement is considered as the date of registration of the Partnership firm.

Step 7: Apply For a PAN Card

It is important to note that registration with the Registrar of Firms is not the same as the registration with the Income Tax Department. It is necessary for all the firms to apply for registration with the Income Tax Department and obtain a PAN Card.

Step 8: Open a Bank Account

After receiving the PAN Card, the partnership firm must open a current account in the name of the firm. This is done to undertake all the operations via the current account of the business.

Companies Act Requirements in respect of Partnership

According to the Companies Act, 2013, the minimum number of persons required to form a partnership form of business is 2. Whereas the maximum number of members in case of partnership firm should not exceed 100. This is unlike the Companies Act 1956, which prescribed the maximum limit of members as 10 in case of partnerships and 20 for banking and other businesses.

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