In a significant boost to ease of doing business for small and early-stage entrepreneurs, the Startup India Portal, managed by the Department for Promotion of Industry and Internal Trade (DPIIT), has introduced dedicated registration and guidance options for partnership firms alongside companies and LLPs.

This update allows startups opting for the traditional partnership firm structure to access startup benefits such as DPIIT recognition, funding facilitation, tax exemptions, and legal advisory—resources previously skewed toward private limited companies and LLPs. The portal now includes a step-by-step guide on forming, registering, and managing a partnership firm, along with downloadable templates for Partnership Deeds and compliance checklists.

Officials from DPIIT stated that the inclusion of partnership firms is aimed at formalizing and empowering small teams and regional entrepreneurs who choose simpler legal structures to start their ventures. “Not every startup begins with venture capital or corporate structuring. Many start lean with a shared vision and mutual trust—partnership firms deserve the same ecosystem support,” said a senior DPIIT officer.

Startups can now indicate their entity type as a registered partnership firm while applying for DPIIT recognition. They must provide proof of registration with the Registrar of Firms, a copy of the Partnership Deed, PAN details, and a business activity description. Recognized firms become eligible for benefits such as self-certification under labor laws, fast-track patent filing, and access to government procurement and seed funds.

Legal experts have welcomed the move, noting that it reflects the reality of India’s startup ecosystem, where a substantial number of new businesses still operate as partnership firms due to lower compliance and setup costs.

This update also aligns with broader government efforts to support grassroots entrepreneurship and reduce the regulatory gap between unincorporated and corporate entities in India’s innovation economy.