How much does it cost to register a partnership firm in India?
Table of Contents
+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 āFirm Nameā
Ā A partnership firm is easy to form with fewer compliances as compared to companies. Read What is a Partnership Deed to know more about how Partnership works.
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.
| State | Cost of Stamp Duty | Less Than 1 Lakh | Rs. 1 Lakh to Rs. 5 Lakh | Rs. 5 Lakh To Rs. 10 Lakh | Above Rs. 10 Lakh |
| Andhra Pradesh | 100 for capital 5000, Rs. 500 for other cases | 500 | 500 | 500 | 500 |
| Arunachal Pradesh | Capital is up to Rs. 1000 – Rs. 30 Other cases Rs. 100 | 100 | 100 | 100 | 100 |
| Assam | Capital is upto Rs. 1000 – Then Rs. 20 Above Rs. 1000 – Rs. 100 | 100 | 100 | 100 | 100 |
| Bihar | If capital disclosed then 2.5% Maximum – Rs. 10,000 If Capital Not Disclosed -Rs. 10,000 | 2500 | 5000 | 5000 | 5000 |
| Chandigarh | Rs. 500 | 500 | 500 | 500 | 500 |
| Chhattisgarh | Capital is upto 50K Then Rs. 1,000 Capital more than 50K Then 2% Maximum = Rs. 5000 | 2000 | 2000-5000 | 5000 | 5000 |
| Delhi | 1% of Capital Min -Rs. 200 Max -Rs. 5000 | 1000 | 2000 – 5000 | 5000 | 5000 |
| Goa | Capital is less than 50K Then Rs. 500 Every addition cap of 50K – Add Rs. 500 Maximum – Rs. 5000 | 150 | 150 | 150 | 150 |
| Gujarat | Rs. 1 for every 100 capital or part thereof Max- Rs. 10,000 | 1000 | 2000-5000 | 6000-10000 | 10000 |
| Haryana | Rs. 1000 | 1000 | 1000 | 1000 | 1000 |
| Himachal Pradesh | Rs. 100 | 100 | 100 | 100 | 100 |
| Jammu & Kashmir Jammu | Capital upto 50K – Rs. 1000 Capital Exceeding 50K – 2% | 100 | 100 | 100 | 100 |
| Jharkhand | If capital disclosed then 2.5% Maximum – Rs. 10,000 If Capital Not Disclosed -Rs. 10,000 | 2500 | 5000 | 5000 | 5000 |
| Karnataka | Rs. 2000 | 1000 | 1000 | 1000 | 2000 |
| Kerala | Flat Rs. 5000 at all Capital Levels | 5000 | 5000 | 5000 | 5000 |
| Madhya Pradesh | Minimum Rs. 2000 Maximum Rs. 10,000 Standard Rate @ 2% of Capital | 2000 | 2000-5000 | 5000 | 5000 |
| Maharashtra | Capital upto 50000 – Rs. 500 Exceeding 50,000 – 1% (Max 15,000) | 1000 | 1% of Capital | 1% of Capital | 1% of Capital |
| Manipur | Rs. 100 | 100 | 100 | 100 | 100 |
| Meghalaya | Rs. 100 | 100 | 100 | 100 | 100 |
| Mizoram | Rs. 100 | 100 | 100 | 100 | 100 |
| Nagaland | Rs. 100 | 100 | 100 | 100 | 100 |
| Orissa | Capital is upto Rs. 500 – Rs. 50 Other Cases – Rs.2000 | 200 | 200 | 200 | 200 |
| Punjab | Capital is upto Rs. 500 – Rs. 4 Other Cases – Rs.1000 | 1000 | 1000 | 1000 | 1000 |
| Rajasthan | For Every Rs. 50000 – Rs. 2000/- Maximum Rs. 10,000 | 500 | 500 | 500 | 500 |
| Sikkim | Rs. 100 | 100 | 100 | 100 | 100 |
| Tamil Nadu | Capital upto Rs. 500 – Rs. 50/- In any other case – Rs. 3000/- | 300 | 300 | 300 | 300 |
| Telangana | Rs. 100/- for capital upto Rs. 5000/- Rs. 300/- In all other cases | 50 | 100 | 100 | 200 |
| Tripura | Rs. 100 | 100 | 100 | 100 | 100 |
| Uttar Pradesh | Rs. 750 | 750 | 750 | 750 | 750 |
| Uttarakhand | Rs. 750 | 750 | 750 | 750 | 750 |
| West Bengal | Rs. 150 | 150 | 150 | 150 | 150 |
How to register a Partnership Firm in India?
Step 1: Register for Partnership Firm with eSahayak by clicking here.
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?
- Profit-Sharing Clause
- Capital Contribution Clause
- Dispute Resolution Clause
- Retirement/termination clause
There are certain Benefits and certain disadvantages of registering a Partnership Firm. If you want to know why a Partnership deed is Important read Importance of Partnership Deed, to know more.
For more information regarding government and legal documents visit eSahayak.io.
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