What is a partnership firm
A partnership firm is a business owned by two or more people who share profits, responsibilities and liabilities. It is simple to set up and popular among small and family businesses. The relationship between partners is governed by a partnership deed.
Registered vs unregistered partnership
A partnership can technically operate without registration, but registration is strongly recommended. An unregistered firm faces real disadvantages — for example, it cannot easily enforce its rights in court against third parties or partners. Registration adds legal strength and credibility.
The partnership deed
The partnership deed is the heart of the firm. A good deed clearly states:
- Names and details of all partners
- Profit and loss sharing ratio
- Capital contributed by each partner
- Roles, rights and duties of partners
- Rules for admitting or removing partners
- How disputes will be resolved
Documents commonly required
- PAN and address proof of all partners
- Photographs of partners
- Proof of the firm's place of business
- A drafted and signed partnership deed
- Firm's PAN application
The registration process
Registration is done with the Registrar of Firms in your state. The broad steps are to draft and execute the partnership deed on appropriate stamp paper, apply to the Registrar with the required documents, and obtain the registration certificate. The firm should also obtain its PAN and any other registrations like GST.
How Aidwish helps
Aidwish drafts a clear, dispute-proof partnership deed, handles registration with the Registrar of Firms, and sets up your PAN, GST and other registrations — so your partnership starts on solid legal ground.