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 Can a partnership firm apply for government tenders?

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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