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Professional Fees for Partnership

Search by Group

Basic

2999/- 1999/-

  • Drafting of deed
  • Execution of Deed
  • PAN
  • TAN
Avail Now

Elite

4999/- 4499/-

  • Drafting of deed
  • Execution of Deed
  • GST Registration
  • PAN
  • TAN
Avail Now

Supreme

24999/- 19999/-

  • Drafting of deed
  • Execution of Deed
  • GST Registration
  • SSI/MSME Registration
  • PAN
  • TAN
  • Income Tax filing upto turnover of Rs. 50 Lakhs
  • GST Returns for one year (GSTR 3B and GSTR 1)
Avail Now

Compliance Requirements for a Partnership Firm in India

Starting and running a Partnership Firm in India comes with various legal and financial obligations. Ensuring compliance helps your business stay legally secure and financially sound. Here’s a breakdown of key compliance requirements:

GST Registration
In India, Partnership Firms are required to obtain GST registration if their annual turnover exceeds the prescribed limit or if they engage in inter-state business. The GST registration process is completely online, eliminating the need for physical document submission to the GST Department. It is mandatory to secure GST registration within 30 days of business incorporation to avoid substantial penalties.
GST Return Fiilings

Partnership Firms with GST registration must file GST returns regularly. Depending on the turnover and scheme opted for, returns can be filed monthly, quarterly, or annually. GST return filing is mandatory for all registered taxpayers, ensuring compliance and seamless tax management.
Bookkeeping
Accounting is a crucial compliance requirement for Partnership Firms. Every firm must maintain accurate and transparent books of accounts, reflecting its financial position. Each partner’s capital contributions, withdrawals, and profit-sharing must be recorded separately, ensuring clear financial tracking and compliance.
Tax Audit

A Tax Audit is required for a Partnership Firm if its total sales turnover exceeds ₹ 1 crore in a financial year. For professional firms, a tax audit is mandatory if gross receipts surpass ₹ 50 lakh during the assessment year. The tax audit must be conducted by a Chartered Accountant (CA), and the audit report must be filed within due date. Non-compliance may result in penalties of 0.5% of turnover (up to ₹ 1.5 lakh).

Income Tax Filing
All Partnership Firms must file an Income Tax Return (ITR) annually. If the firm does not require a tax audit, the due date for filing is July 31st. However, if a tax audit is mandatory under the Income Tax Act, the return must be filed by September 30th.
TDS Return
Partnership firms with a TAN and a liability to deduct tax at source (TDS) must file quarterly TDS returns as per TDS regulations. These returns, submitted to the Income Tax Department, provide a detailed statement of TDS deducted and deposited for the respective quarter.

Documents Required to Setup Partnership

1


Passport size colour photo

2


Partnership Deed

3


Identity Proof of Partners


4


Proof Residence of Partners


5


Proof of Registered Office Address


6


 NOC from the owner of registered office premises


Partnership Registration Process with ROF in India

Documents for Partnership Registration

The Partnership Registration process in India begins with gathering the required documentation. Each partner must provide essential KYC documents, including Aadhar, PAN, residential address proof, and a recent color photograph.

For verifying the Principal Place of Business, a utility bill of the premises, accompanied by the owner’s No Objection Certificate (NOC), is mandatory.
Selecting a Unique Compliant Firm Name
Your partnership firm’s name should be unique, relevant, and reflective of your brand and business activity. It must not be identical or similar to any existing business or registered trademark. To ensure availability, you can check the name using the MCA and IP India name search tools.
Legal Registration of a Partnership Deed
The Partnership Deed serves as the legal foundation for forming a partnership firm in India. It is considered legally valid only when the applicable stamp duty, as per the respective State Stamp Act, is duly paid. All partners must sign the deed in the presence of a notary and two witnesses to ensure its authenticity.
PAN and TAN Registration for Partnership Firm
To comply with Income Tax regulations, the PAN (Permanent Account Number) for the partnership firm is obtained by applying in Form 49A. Similarly, TAN (Tax Deduction and Collection Account Number) is required for TDS (Tax Deducted at Source) compliance and can be applied using Form 49B. Once applied, the government assigns both PAN and TAN, completing a crucial step in the partnership registration process.
GST Registration Requirement for Partnership Firm
GST registration is mandatory for partnership firms to comply with GST obligations, including paying taxes and filing returns. The firm must submit the required application and documents to the GST Network (GSTN) for registration. Once approved, the firm is assigned a unique GSTIN (GST Identification Number), which is essential for all future GST-related transactions and compliance.
Partnership Firm Registration with the Registrar of Firms (ROF)
To register a partnership firm in India, start by checking if your state offers online registration. If so, visit the official ROF website, submit the required documents, and pay the government fees. If registration is offline in your state, you’ll need to visit the Registrar of Firms (ROF) office in person to apply. Once the application is processed, the ROF will officially register your firm and issue a Partnership Firm Registration Certificate in the firm’s name.

FAQ On Partnership

FAQs On Partnership

Get answers to all your queries

  • What is a Partnership Firm?

    A partnership firm is a business form in which two or more individuals manage and operate a business in accordance with the terms and objectives set in a Partnership Deed. This may or may not be registered.

  • Is there any limit on the number of Partners?

    A partnership must have at least two partners. A partnership firm in the banking business can have up to 10 partners, while those engaged in any other business can have 20 partners.

  • What are the different types of Partnership Firms?

    The Indian Partnership Act of 1932 regulates partnership businesses, offering two types of partnership firms: unregistered and registered. An unregistered firm is established based solely on a partnership deed. In contrast, registered firms are further registered with the Registrar of Firms (ROF).

  • Is it mandatory to have a written Partnership agreement (Partnership deed)?

    No, it is not mandatory to have a written Partnership agreement i.e. Partnership deed. However, it is always the best course to have a written document (partnership deed) instead of oral agreements.

  • Is the firm liable for the wrongful act of one partner?

    Yes. The firm and all the partners are liable for the wrongful act or fraud which causes loss or injury to any third parties.

  • What are the documents required for GST registration for Partnership firm?

    1. Photos of all Partners
    2. PAN Card of all Partners
    3. Aadhaar Card of all Partners
    4. PAN Card of the Partnership Firm
    5. Proof of Constitution of Business (Partnership deed)
    6. Proof of Principle place of business (Anyone – Electricity Bill/Rent or Lease agreement/Latest Bank Statement – Not less than 2 months old)
    7. Letter of Authority in favour of any Partner


  • What is Partnership at will?

    When the partnership deed does not contain any provision for the duration of the partnership nor conditions for the termination of the partnership, it is a partnership at will.

  • Still, have confusion?

    Don’t worry!! Our expert will help you to choose the best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at support@newtaxage.com

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