Partnership Firm

Incorporate Your Partnership Firm

Start a classic partnership with a clear deed, flexible profit-sharing, and simple compliance. We help draft your Partnership Deed, get PAN, open the current account, and register under local laws as applicable.

Compare with LLP Compare with Pvt Ltd

Quick setup Deed drafting Banking-ready docs

Overview

What is a Partnership Firm?

Two or more persons carry on a business and share profits as per a written Partnership Deed. It is easy to start and operate, with flexibility in duties and profit split.

Team-led

Bring co-founders together with clear roles.

Flexible

Profit sharing, capital, and duties are fully customizable.

Liability

Partners are personally liable—use risk controls.

Fit

When a Partnership Firm makes sense

Great for small teams seeking speed with shared ownership—without corporate formalities.

Good choice if

You need a quick, low-cost multi-owner start
Profit-sharing flexibility matters
You don’t need equity investment/ESOPs soon

Consider LLP/Pvt Ltd if

You want limited liability & stronger governance
You plan to raise equity or issue ESOPs
Enterprise vendor onboarding needs corporate form

Requirements

Minimum requirements & documents

Exact needs vary by state, activity and bank’s KYC policy.

Partners & basics

Minimum 2 partners (individuals/body corporates)
Unique firm name (avoid trademark conflicts)
Registered office with valid proofs

Document checklist

KYC of partners: PAN, Aadhaar/Passport, photo & signatures
Office proof: utility bill + Rent Agreement/Title & Owner NOC
Draft Partnership Deed with capital & profit share

Deed

Partnership Deed essentials

Your rulebook for decision-making, profits, and exits.

Must-have clauses

Capital contribution & profit-loss ratio
Powers & duties of managing partner(s)
Banking powers & borrowing limits
Admission/retirement/expulsion; settlement method
Non-compete, confidentiality & IP ownership
Dispute resolution & governing law

Common mistakes

Vague voting thresholds → deadlocks
No method for goodwill/exit valuation
Missing indemnity & IP assignment

Process

Partnership firm setup timeline

Indicative sequence; stamping & registrations are state-specific.

Day	Step	What happens	Status
0–2	KYC & Name	Collect partner KYC; finalize firm name & nature of business.	Start
1–4	Draft & Stamp Deed	Draft deed; stamp as per state; execute by partners.	Draft
2–6	Registration (State/ROF)	Optional/Recommended: Register firm (if available in your state).	Varies
3–7	PAN & Bank A/c	Apply PAN; open current account with deed and KYC.	Approved
As needed	Other Registrations	GST, Shops & Establishment, Professional Tax, trade licences.	Apply

Compliance

Ongoing compliance snapshot

Simple bookkeeping and returns; more if you opt into GST/TDS.

Income tax

File firm ITR; partners taxed on share/interest/remuneration as per law.

Books & audit

Maintain books; audit thresholds may apply based on turnover.

GST/TDS

FAQ

Common questions

Clear answers to help you decide confidently.

Yes—admission/retirement can be done through deed amendments and bank/KYC updates.

Many banks accept a properly stamped deed with KYC. Policies vary; registration strengthens acceptance.

Not everywhere, but recommended for legal standing and better banking/vendor onboarding.

No—partners are generally personally liable. Consider LLP if liability protection is a priority.

This page provides general information and is not legal/tax advice. Rules and timelines may change by state and authority.

Get a Call Back

Tell us about your partnership plan

We’ll reply with a deed template outline, stamping guidance & registration checklist.

We respect your privacy and will contact you only for this request.

GST & Other Indirect Taxes

Income Tax

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