The business is owned and managed by two or more partners who share profits and losses.

              All Partners have the right to participate in Decision-Making and Management unless otherwise specified in the Partnership Agreement.

              Partners have unlimited liability, meaning their personal assets can be used to settle business debts.

              All Partners have the right to participate in Decision-Making and Management unless otherwise specified in the Partnership Agreement.

              Establishing a Partnership is relatively Simple and Cost-Effective, requiring Minimal Legal Formalities.

              The Firm’s Income is taxed at the Partnership Level, but Partners are also taxed individually on their share of profits.

              Partners can pool their resources, expertise, and skills, sharing responsibilities and decision-making, which reduces the individual burden.

              Forming a Partnership firm is straightforward, with minimal registration requirements and fewer formalities than Companies.

              Partners have the flexibility to determine the terms of Operation, Profit Sharing, and Management through a partnership agreement.

             Partners can combine their capital to invest in the Business, Leading to greater financial strength and resources.

            Partnerships foster mutual trust and cooperation, as partners work together toward a common business goal.

            A Partnership firm has fewer compliance requirements compared to other business entities, making it easier to manage.

           Select a Unique name for your Partnership that reflects the Business and isn’t already registered.

            A Partnership deed is a written agreement between partners that outlines the terms of the partnership, including profit-sharing, management, roles, and responsibilities.

 This deed should include :

Name and address of the firm and partners.

Nature of the business.

Profit-sharing ratio among partners.

Duties and responsibilities of each partner.

Duration of the partnership (if applicable).

Partnership Registration is optional but recommended for legal protection.

To register, submit the partnership deed along with an application form to the Registrar of Firms in your state.

Once registered, you will receive a certificate of registration.

         A PAN card in the name of the partnership firm is required for tax purposes.

Open a bank account in the name of the partnership firm.

Provide the partnership deed, PAN card, and proof of business address to the bank.

            Register for GST if your annual turnover exceeds ₹20 lakhs (₹10 lakhs for special category states) or if you engage in inter-state trade.

MSME (Udyam) Registration – If the firm is classified as a small or medium enterprise, registering under Udyam can offer benefits such as government subsidies and incentives.

Trade License – Required for specific businesses and issued by the local municipality.

Shop and Establishment Act License – Mandatory for shops, commercial establishments, and offices.

          Some states require the registration of Professional Tax for the partners and employees, based on their earnings.

           If the firm is liable to deduct tax at source (TDS) while making payments, apply for a TAN (Tax Deduction and Collection Account Number).

           If the firm employs staff, ensure compliance with Provident Fund (PF) and Employee State Insurance (ESI) once employee thresholds are crossed.

          The Partnership Firm must file its income tax returns annually. Each partner must also file individual tax returns, including their share of the firm’s income.

           To protect your brand name or logo, consider registering a trademark.

           If your firm is engaged in import-export activities, apply for an Import-Export Code (IEC).