R&SB
Rakesh & Sunil Bansal
Brothers, Wholesale · Ahmedabad
Google
Split our family cloth wholesale between two brothers — 55/45. Taxpex drafted a proper deed with a buyout formula. No family dispute in 3 years, unheard of.
Verified Client
CA-drafted deed + firm PAN + Udyam in 5–10 working days — 100% online.
End-to-end partnership setup — custom deed, notarisation, Registrar of Firms filing, PAN, Udyam and bank-ready pack — reviewed by qualified Chartered Accountants. Government fees at actuals.
CA-drafted deed + ROF filing + PAN + Udyam — one flow
If any of these describe your business, this service is either mandatory or strongly recommended.
Multi-generational businesses formalising ownership, profit shares and decision rights between family members through a registered partnership deed.
Two or more co-founders splitting capital, work and profits — a partnership firm is the simplest way to make it legally binding from day one.
Wholesalers, distributors and importers who need a registered trade name, current account and GST under a multi-partner structure.
Marketing agencies, design studios, video production houses and consulting firms operated by 2–4 partners sharing revenue.
CA, CS, architects, lawyers and doctors pooling resources, office space and clients under one registered firm name.
Family-run kirana, garments, restaurants and franchise outlets where ownership is shared between siblings, spouses or partners.
Salons, repair workshops, event managers and contractors with multiple working partners and clear profit-sharing roles.
Keep these handy — most clients complete document sharing in under 10 minutes. Upload securely on WhatsApp or via our dashboard.
Every document is stored on encrypted servers, accessible only to your assigned CA.
A modern, fully digital workflow — no office visits, no paperwork chaos.
Share partner KYC, capital contribution, profit-sharing ratio and proposed firm name on WhatsApp. We verify everything before drafting.
Our CA team drafts a custom partnership deed — capital, profit share, roles, decision rights, admission/retirement and dispute resolution.
Deed printed on state-appropriate stamp paper, signed by all partners and notarised. State-wise stamp duty at actuals.
Registrar of Firms application (Form 1), firm PAN and Udyam filed in parallel. Certificate + bank pack handed over — ready to invoice.
We help sellers, freelancers and D2C brands register GST for the marketplaces they invoice on.
Brand names shown are for illustration of businesses commonly served — no official partnership implied.
A premium experience usually reserved for big firms — at startup-friendly pricing.
From D2C founders in Bengaluru to consultants in Chennai — we deliver partnership firm registration with CA supervision across 28 states and 8 UTs.
Every partnership deed drafted and reviewed by a Chartered Accountant — tax-efficient clauses, clear exit terms, zero rework.
Deed drafted in 24–48 hours. Registration typically complete in 5–10 working days end-to-end with PAN and Udyam included.
Flat ₹2,999 professional fee. Stamp duty and government fees shared on actuals before filing. No hidden charges, ever.
We handle deed drafting, notarisation, ROF filing, PAN, Udyam and bank current account pack — one WhatsApp thread.
Partnership firms registered across all states — Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Pune, Kolkata and tier-2 cities.
Plain-English explanations of every clause, partner rights and tax impact. Built for first-time founders, not just experienced businesses.
No hidden charges. Stamp duty varies by state — shared upfront in writing.
A CA-authored, plain-English guide to structure, deed, registration, taxation and compliance for Indian partnership firms.
A Partnership Firm is a business owned by two or more individuals (partners) who agree to share profits, losses and management responsibilities. It is governed by the Indian Partnership Act, 1932 — one of India's oldest business statutes.
The internal working of the firm is entirely governed by a written Partnership Deed — the firm's constitution. Unlike a company, a partnership firm has no separate legal identity from its partners; the firm and the partners are legally the same for most purposes, and partners are jointly and severally liable for the firm's debts.
Registration with the Registrar of Firms (ROF) is optional under the Partnership Act, but strongly recommended. An unregistered firm cannot file a suit in court to enforce contractual rights against a third party or between partners themselves — a crippling limitation the moment there is any dispute. Registration also makes it easier to open a current account, get bank loans and bid for tenders.
The Partnership Deed is the single most important document in your firm's life. It governs how partners share profit, take decisions, admit or retire, resolve disputes and eventually dissolve the firm. Every clause deserves careful thought — a poorly drafted deed is the #1 cause of partnership breakups.
Taxpex collects KYC of all partners, agreed capital contribution, profit-sharing ratio, business scope, working partner roles, and preferred firm name — all on WhatsApp.
The proposed firm name is checked for uniqueness (though ROF checks are less strict than MCA). We recommend running an IP India trademark search to avoid disputes later — this is included in the ₹2,999 fee.
Custom deed drafted covering all clauses. Two rounds of partner review are included. Once finalised, deed is printed on stamp paper of the appropriate value per the state Stamp Act.
All partners sign the deed in front of a notary public. Photographs and signatures of every partner are affixed on each page. Notary attestation and stamping are completed on the same day.
Form 1 with prescribed fee (state-specific, typically ₹100–₹1,000) is filed with the Registrar of Firms in the state where the firm has its principal place of business. Certificate of Registration is issued within 7–15 working days.
Firm PAN is applied for using the registered deed. Udyam Registration is filed under the firm PAN. A bank-ready document pack (deed + PAN + Udyam + address proof) is handed over for current account opening.
| State | Typical stamp duty on deed |
|---|---|
| Maharashtra | ₹500 (up to ₹50,000 capital), 1% thereafter |
| Delhi | ₹200 fixed |
| Karnataka | ₹500 (up to ₹1L), 1% thereafter |
| Tamil Nadu | 1% of capital, max ₹300 |
| Gujarat | 1% of capital, min ₹500 |
| Telangana | ₹500 fixed |
| West Bengal | ₹500 fixed |
| Uttar Pradesh | ₹750 fixed |
A partnership firm is a separate tax entity for income tax purposes (unlike a proprietorship). The firm files its own ITR-5 and pays tax on its taxable income. Partners' share of profit is exempt in their hands under Section 10(2A) — no double taxation.
| Item | Treatment |
|---|---|
| Firm income tax rate | Flat 30% + 12% surcharge (> ₹1 Cr) + 4% cess |
| Partner's share of profit | Exempt in partner's hands u/s 10(2A) |
| Partner remuneration (working partners only) | Deductible from firm income within Section 40(b) limits |
| Interest on capital | Deductible up to 12% p.a. per Section 40(b) |
| Alternate Minimum Tax | 18.5% of adjusted total income |
| Tax audit threshold | ₹1 Cr turnover (business) / ₹50L (profession) |
| ITR form | ITR-5 |
Section 40(b) caps the amount of partner remuneration and interest on capital that a firm can deduct from its taxable income. Amounts above the cap are added back to firm income. Deed clauses must specifically authorise remuneration and interest — otherwise no deduction is allowed.
| Component | Section 40(b) limit |
|---|---|
| Interest on partner capital | Up to 12% per annum |
| Working partner remuneration — first ₹6 lakh of book profit | 90% or ₹3 lakh (higher) |
| Working partner remuneration — balance of book profit | 60% |
| Non-working partner remuneration | Not deductible |
| Excess amounts | Disallowed — added back to firm income |
| Filing | Due date | Applies to |
|---|---|---|
| ITR-5 — firm income tax return | 31st July (or 31st October if audit) | All firms |
| Tax audit report (Form 3CB-3CD) | 30th September of AY | Turnover > ₹1 Cr (business) / ₹50L (profession) |
| GST returns (GSTR-1, 3B) | Monthly / quarterly | If GST registered |
| TDS returns (Form 26Q, 27Q) | Quarterly | If TDS deducted |
| Partner ITR (ITR-2 / ITR-3) | 31st July every year | All partners individually |
| Advance tax (firm) | 15 Jun / 15 Sep / 15 Dec / 15 Mar | Estimated liability > ₹10,000 |
| Parameter | Partnership Firm | LLP | Pvt Ltd |
|---|---|---|---|
| Governing law | Partnership Act, 1932 | LLP Act, 2008 | Companies Act, 2013 |
| Limited liability | No — unlimited & joint | Yes | Yes |
| Separate legal identity | No | Yes | Yes |
| Minimum members | 2 partners | 2 partners | 2 shareholders + 2 directors |
| Setup time | 5–10 days | 10–12 days | 7–10 days |
| Setup cost | ₹2,999 + stamp | ₹5,999 + stamp | ₹6,999 + stamp |
| Registrar | State Registrar of Firms | MCA | MCA |
| Annual compliance | ITR-5 only | Form 8 + 11 + ITR-5 | AOC-4 + MGT-7 + audit + ITR-6 |
| Foreign investment | Restricted | Allowed (auto route) | Allowed (auto route) |
| Best for | Family, small trading, professional duo | Consultancies, agencies | Funded startups, product companies |
The most expensive partnership problem is not a bad deal — it's a bad deed. When two partners disagree on strategy, salary, admission of a new partner or valuation of a departing partner's stake, and the deed is silent or ambiguous, litigation is the only option. Indian civil courts take 5–8 years to resolve such disputes; arbitration under a well-drafted clause takes 12–18 months.
A partnership can dissolve automatically on death, insolvency or resignation of any partner (unless the deed provides otherwise), on completion of the venture, on partner majority resolution, or by court order for specified grounds. Dissolution triggers a settlement of accounts under Sections 48 and 49 of the Partnership Act, and the firm's assets are distributed after paying debts.
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15-minute call · Zero obligation · Get your firm structure, deed outline and exact price in writing before you pay a rupee.
Typically 3–7 working days post-document submission. Aadhaar e-KYC authenticated applications are usually faster (3–4 days).
via GST Registration & FilingIf your service turnover crosses ₹20 lakh (₹10 lakh in special category states) or you supply inter-state, yes. We help you assess and register.
via GST Registration & FilingTypically 7–12 working days end-to-end including name approval, DSC, SPICe+ and PAN/TAN.
via Business RegistrationTypically 3–7 working days. Aadhaar-authenticated applications are processed faster (3–4 days).
via GST RegistrationContent refreshed against the latest CBIC / CBDT / MCA notifications and portal changes.
Chartered Accountant · ICAI Member · 12+ years in Indian tax & compliance