What is a partnership firm?

A partnership is when two or more people run a business together and share profit. The firm is not a company. Partners are generally responsible for the firm’s acts.

What is a partnership deed?

The deed is the written agreement between the partners. It is the paper banks, the tax department and the Registrar look at when they ask how the firm is set up.

Who needs a deed?

• Two or more people starting a firm
• An existing firm whose old deed is missing, vague or out of date
• A firm adding or removing a partner, or changing profit share

What the deed usually covers

• Name and place of business
• Capital brought in by each partner
• Profit and loss sharing ratio
• Who can operate the bank account
• Roles, drawings and remuneration, if any
• How a partner exits, and what happens on death or dispute

Deed and firm registration — two steps

The deed is the agreement. Firm registration is the filing with the Registrar of Firms in the state. Registration is not always compulsory, but banks, tenders and many departments ask for it. After the deed is stamped, the firm can be registered.

PAN of the firm

A registered or unregistered firm still needs its own PAN for tax and bank work. GST, if needed, comes after the constitution papers are in order.

What we do

• Draft a clear deed from what you actually agreed
• Support stamping and notarisation as required
• Help with Registrar of Firms filing
• Point out PAN / TAN / GST follow-on steps

Papers usually needed

• Names, addresses and PAN / Aadhaar of partners
• Business address proof
• Capital and profit-share details
• Photographs and ID proofs
• Old deed, if this is an update