A Partnership is a kind of formation of a different identity other than the Self-Owner Concept (Sole Proprietor or One Person Owned Company), that having at least two or more individuals with the objective of managing and operating a business according to signing terms and conditions as written in the Partnership Firm Deed.

Every Partnership Firm has its own name identity, unlike Sole Proprietor. Therefore, the PAN card under that name is issued to Partnership Firm. All the Partnership Firms are governed according to terms and conditions as defined in the Partnership Act, 1932 and other effective and application laws of India.

Basically, a Partnership Firm is a hardship of 2 or more than 2 individuals for the succession of such reserved name under which the firm needs to start or started. Also, under the entrepreneurship activities of the Partnership Firm imposes individually capacity on every partner in terms of contributions of capital, timings, efforts and day-to-day sincere presence in the business of the firm. However, every Partnership Firm has various advantages like sharing of profits and sharing of loss and others. The partnership may be oral or written, However, as per statutory obligation Partnership deed shall be written

Contents of a Partnership Firm Deed

• Names of Partners – including various details regarding all the partners concerned with the firms.
• Date of writing/execution of deed – it specifies where the deed for the partnership firm was signed and executed.
• Commencement of Partnership – where need to mention the date from which the partnership shall begin.
• Duration of Partnership / Lock-in-Period – where need to mention how long the partnership firm will be carried out its business under the same name or style.
• Business to be done – it specifies what kind of activity will be carried out by the partnership firm.
• Name of the firm – it mentions the name under which the firm shall carry its business.
• Initial investment/capital – it specifies what amount each partner shall invest by way of capital(money).
• Division of profits between or amongst partners.
• Terms of Dissolution (closing conditions of partnership firm).

Stamp Duty

The Partnership Firm Agreement contains some important elements which are written over a stamp paper. The stamp paper of the required amount is bought and the agreement is printed on it. The stamp duty is required to as per section 46 of the Indian Stamp Act, 1899 which varies from State to State. In the case of Delhi, the minimum stamp duty payable on Partnership Deed is Rs.200.

Necessary Documents

• Name of your prospective firm.
• Nature of Business.
• Photographs of each and every partner related to the firm.
• PAN and Aadhaar of every partner of the firm.
• Business situation documents such as Sale Deed, Conveyance Deed, Agreement to Sell, Rent Agreement and Lease Deed.

Steps for Registration

• Drafting of Partnership Firm Deed by the regular practice person like; Lawyers, CA, CS and others consultants and professionals.
• Stamp Paper must be bought for the execution. (it must be of that place (state) where the firm will be running their business)
• The date and Time are fixed for the registration with Sub Registrar Office.
• The Government registration fee is paid.
• All the partners with 2 witnesses visit the sub-registrar office on the fixed day for the registration of Partnership Deed.
• The registered partnership deed can be collected from such an office at a given point in time.

Advantages of Partnership Firm registration

• Easy to Incorporate
• Partnership incorporation is very simple to incorporate as compared to other entity, Partnership can be formed by drafting of partnership deed.
• Fewer Compliances.
• The Partnership from needs to require only a few compliances, Such as GST and income Tax return.