Documentation and Compliance Requirements
The firm must provide several official documents to qualify for bidding and ensure legal transparency.
- Partnership deed and certificate of registration (if available)
- An authorization letter from partners naming the bidding signatory
- Valid GST certificate, Income Tax returns, and financial statements
- Work experience certificates, technical qualifications, and turnover proof
- Compliance with MSME registration (if applicable) for tender exemptions
Participation Through Authorized Partner
Since a partnership firm is not a separate legal entity, it participates through its authorized partner or signatory.
- An authorized partner submits bids on behalf of the firm
- Authorization must be clearly stated in the partnership deed or via resolution
- The name of the authorized signatory should appear in all documents
- All partners are jointly responsible for the tender performance
- Execution of the contract must be done in the firm’s name, not the individual’s
Financial and Technical Qualifications
Like any other bidder, a partnership firm must meet pre-qualification requirements set out in the tender.
- Minimum annual turnover and past work experience are commonly required
- Firms may need to submit an earnest money deposit (EMD) or bid security
- Some government tenders have start-up or MSME relaxations
- Joint ventures or consortia are sometimes allowed in high-value tenders
- Proper accounting and audited statements support eligibility claims
Benefits and Challenges for Partnership Firms
While partnership firms can access a wide range of public procurement opportunities, they also face certain limitations.
- Eligible to compete in public infrastructure, supply, and service tenders
- Can benefit from MSME tender exemptions for EMD and turnover
- Limited liability protection is absent unless converted to LLP
- Need to ensure clarity in authority, compliance, and document accuracy
- Larger tenders may favor LLPs or private limited companies due to structural credibility
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