How much does it cost to register a partnership firm in India?

What is a Partnership Firm in India?

The Indian Partnership Act, 1932 governs and regulates partnership firms in India.

A Firm is called a partnership firm when two or more persons come together into partnership with one another to carry on a business. The individual who comes together are called partners and collectively called partnership firm, and the name under which their business is carried on is called the “Firm Name”

How much does it Cost to Register a Partnership Firm in India?

The registration cost of a Partnership Firm in India varies from State to State according to their stamp duty rules. Here’s a list of the total cost of registration of partnership deed for each state depending on the capital invested by the Partners.

StateCost of Stamp DutyLess Than 1 LakhRs. 1 Lakh to Rs. 5 LakhRs. 5 Lakh To Rs. 10 LakhAbove Rs. 10 Lakh
Andhra Pradesh100 for capital 5000, Rs. 500 for other cases500500500500
Arunachal PradeshCapital is up to Rs. 1000 – Rs. 30 Other cases Rs. 100100100100100
AssamCapital is upto Rs. 1000 – Then Rs. 20 Above Rs. 1000 – Rs. 100100100100100
BiharIf capital disclosed then 2.5% Maximum – Rs. 10,000
If Capital Not Disclosed -Rs. 10,000
ChandigarhRs. 500500500500500
ChhattisgarhCapital is upto 50K Then Rs. 1,000 Capital more than 50K Then 2% Maximum = Rs. 500020002000-500050005000
Delhi1% of Capital Min -Rs. 200 Max -Rs. 500010002000 – 500050005000
GoaCapital is less than 50K Then Rs. 500 Every addition cap of 50K – Add Rs. 500 Maximum – Rs. 5000150150150150
GujaratRs. 1 for every 100 capital or part thereof Max- Rs. 10,00010002000-50006000-1000010000
HaryanaRs. 10001000100010001000
Himachal PradeshRs. 100100100100100
Jammu & Kashmir JammuCapital upto 50K – Rs. 1000 Capital Exceeding 50K – 2%100100100100
JharkhandIf capital disclosed then 2.5% Maximum – Rs. 10,000 If Capital Not Disclosed -Rs. 10,0002500500050005000
KarnatakaRs. 20001000100010002000
KeralaFlat Rs. 5000 at all Capital Levels5000500050005000
Madhya PradeshMinimum Rs. 2000 Maximum Rs. 10,000 Standard Rate @ 2% of Capital20002000-500050005000
MaharashtraCapital upto 50000 – Rs. 500 Exceeding 50,000 – 1% (Max 15,000)10001% of Capital1% of Capital1% of Capital
ManipurRs. 100100100100100
MeghalayaRs. 100100100100100
MizoramRs. 100100100100100
NagalandRs. 100100100100100
OrissaCapital is upto Rs. 500 – Rs. 50 Other Cases – Rs.2000200200200200
PunjabCapital is upto Rs. 500 – Rs. 4 Other Cases – Rs.10001000100010001000
RajasthanFor Every Rs. 50000 – Rs. 2000/- Maximum Rs. 10,000500500500500
SikkimRs. 100100100100100
Tamil NaduCapital upto Rs. 500 – Rs. 50/- In any other case – Rs. 3000/-300300300300
TelanganaRs. 100/- for capital upto Rs. 5000/- Rs. 300/- In all other cases50100100200
TripuraRs. 100100100100100
Uttar PradeshRs. 750750750750750
UttarakhandRs. 750750750750750
West BengalRs. 150150150150150

How to register a Partnership Firm in India?

Step 1: Register for Partnership Firm with eSahayak

Step 2: Registration under Income Tax and Issuance of PAN

Step 3: GST registration and Bank Account Opening

Step 4: Selection of a Unique Name of the Partnership Firm

Step 5: Getting the Certificate of Registration

What documents are required to register a Partnership Firm In India?

The application for the Partnership registration form must include the prescribed documents like the Identity proof, address proof, a real copy of the Partnership deed entered into, and the proof of the principal place of business.

The following documents can be submitted as identity proof:

  • PAN card
  • Passport
  • Driver License
  • Aadhar Card
  • Voters ID

Following Documents can be used as the proof of business premise:

  • Sale Deed in case if the Partner owns the place
  • Rental agreement copy if the office is on rental basis
  • Copy of the latest electricity bill or the tax bill receipt

Checklist for Partnership Firm Registration

  • Draft a partnership deed by clicking here
  • Name and address of the firm and all the partners
  • Deciding on the Nature of business
  • Capital to be contributed by each partner
  • Date of starting of Business capital to be contributed by each partner
  • Profit/ Loss Sharing ratio among each partner

Important Clauses to be added in Registration of a Partnership Deed?

  1. Profit-Sharing Clause
  2. Capital Contribution Clause
  3. Dispute Resolution Clause
  4. Retirement/termination clause