What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Clear documentation of rights and responsibilities among partners.
- Defined profit-sharing and capital contribution arrangements.
- Structured framework for business management and decision-making.
- Preparation of the partnership deed.
- Assistance with applicable registration formalities.
- Better clarity regarding admission, retirement, or exit of partners.
- Guidance on tax, PAN, GST, and other applicable registrations.
How the engagement works
Partnership firms are primarily governed by the Indian Partnership Act, 1932, along with applicable State registration procedures, tax laws, and other business regulations. The partnership deed records the terms agreed between the partners, while registration requirements and procedures for firms may vary by State. Registration, PAN, GST, Shops and Establishments, professional tax, and other registrations may apply depending on the nature and location of the business.
Scenario 1: Two or more individuals want to start a business together with clearly defined profit-sharing and management arrangements.
Scenario 2: Family members want to establish a formal partnership for operating a trading, manufacturing, professional, or service business.
Scenario 3: Existing business partners want to document their commercial arrangement through a comprehensive partnership deed.
Scenario 4: Partners want to change the profit-sharing ratio, capital contribution, responsibilities, or other terms of an existing partnership.
Scenario 5: Business owners want professional assistance with partnership registration and related PAN, GST, or other statutory registrations.
Partner Structure Review
We understand the proposed business, partners, capital contributions, profit-sharing ratio, roles, responsibilities, decision-making arrangements, and other commercial terms.
Partnership Deed Drafting
We prepare a comprehensive partnership deed covering capital, profit sharing, management, partner duties, remuneration, interest, admission, retirement, dissolution, dispute resolution, and other agreed terms.
Document Verification
We collect and verify partner identity and address documents, registered office or business address proof, photographs, and other documents required for the applicable registration process.
General questions
01What is a partnership firm?
A partnership firm is a business arrangement in which two or more persons agree to carry on a business and share its profits according to the terms agreed between them.
02How many partners are required to form a partnership firm?
A partnership requires a minimum of 2 partners, and the maximum number of partners is currently capped at 50 under Rule 10 of the Companies (Miscellaneous) Rules, 2014 under applicable law.
03What is a partnership deed?
A partnership deed is an agreement between the partners that records the terms governing the partnership, including capital contributions, profit sharing, responsibilities, remuneration, decision-making, admission or retirement of partners, and dissolution.
04Is partnership firm registration compulsory?
Registration requirements and the legal consequences of an unregistered partnership are governed by the Indian Partnership Act, 1932 and applicable State procedures. Registration is generally advisable because an unregistered firm may face restrictions on enforcing certain contractual rights through the courts.
05What documents are required for partnership registration?
Common documents include partner PAN and identity proof, address proof, photographs, partnership deed, principal place of business proof, owner consent where applicable, and other documents prescribed by the relevant State authority.
06Can the partnership deed be changed later?
Yes. Partners can amend the partnership deed to reflect changes such as profit-sharing ratio, capital contribution, remuneration, admission or retirement of partners, business activities, or other agreed terms, subject to applicable legal and registration requirements.
07Can a partnership firm obtain GST registration?
Yes. A partnership firm can obtain GST registration when it becomes liable or eligible for registration under the applicable GST provisions. GST registration is separate from partnership firm registration.
