Partnership Firm
Partnership deed drafted for your business, registered with the state Registrar of Firms, with PAN and bank account
- 1TermsCapital, profit share, salaries and roles agreed.
- 2DeedDeed drafted, stamped and signed.
- 3RegisterApplication to the Registrar of Firms.
- 4PAN and bankFirm PAN applied for; bank account opened.
Share your details. We’ll reply on WhatsApp with the next steps and a checklist.
Pick a plan — the fee is adjusted if you hire us within 30 days.
About Partnership Firm
A clear overview, in simple terms — what it is, why it matters, and how we handle it.
A partnership firm is formed by a partnership deed between two or more partners under the Indian Partnership Act, 1932. Registering it with the state's Registrar of Firms is optional, but an unregistered firm can't sue others to enforce its contracts. The firm needs its own PAN and bank account, pays 30% tax on profits, and since April 2025 must deduct 10% TDS on payments to partners above ₹20,000 a year.
A partnership is quick and inexpensive to set up and suits family businesses, traders and small professional practices. The deed decides almost everything: capital, profit share, salaries and interest to partners, who can sign, and what happens when a partner leaves.
The catch is unlimited liability — every partner is personally liable for the firm's debts. If that worries you, an LLP offers the same flexibility with limited liability.
We draft the deed for your situation, keep partner salaries and interest within the limits the Income-tax Act allows as deductions, get it stamped, register the firm with the Registrar, and apply for the firm's PAN.
| Law | Indian Partnership Act, 1932 |
|---|---|
| Partners | Minimum 2, maximum 50 |
| Registration | Optional with the state Registrar of Firms; unregistered firms can't sue to enforce contracts (Section 69) |
| Tax on profit | 30% plus surcharge and cess |
| Partner payments | Interest up to 12% and remuneration within Section 40(b) limits are deductible |
| TDS on partner payments | 10% above ₹20,000 a year, since April 2025 |
Who this is for
Common scenarios where this service is a good fit.
- Family businesses and traders
- Two or more people starting a business together on a budget
- Small professional practices
- Firms that need a registered deed for bank loans or tenders
What you get
Clear deliverables so you know exactly what's included.
- Partnership deed drafted for your business
- Stamp duty and notarisation guidance
- Registration with the Registrar of Firms
- PAN application for the firm
- Bank account support
- Advice on partner salary and interest limits
Expert review before every submission — not just data entry.
Working notes and reconciliations you can rely on in future notices.
Resident Indians, NRIs, expats and cross-border businesses — all served.
Documents required
A practical checklist. We'll tell you if anything else is needed based on your case.
* This is a base checklist. After a quick pre-check, we may ask for additional items specific to your case.
Process
A simple, trackable workflow — designed to avoid back-and-forth.
Capital, profit share, salaries and roles agreed.
Deed drafted, stamped and signed.
Application to the Registrar of Firms.
Firm PAN applied for; bank account opened.
Get a quote
We share a clear quote on WhatsApp after a quick checklist pre-check.
- ₹4,999 professional fee covering the deed, registration and PAN.
- Stamp duty and Registrar fees vary by state and are listed separately.
| Factor | DIY | Indus Tax |
|---|---|---|
| Expert review | ❌ | ✅ |
| Notice risk reduction | ❌ | ✅ |
| Deduction optimisation | ❌ | ✅ |
| Audit-ready records | ❌ | ✅ |
| AIS/26AS reconciliation | ❌ | ✅ |
Share your facts and deadline. We'll reply with the right checklist and a clear quote.
Fee adjusted against our service fee if you go ahead within 30 days.
- Priority CA Call-backSkip the queue — a CA calls you within 30 minutes.₹255
- RecommendedCA Consultation (30 min)Talk one matter through properly with a CA.₹755
- In-depth CA Review (60 min)Documents reviewed before the call, written action plan after.₹1,155
Call-backs run Mon–Sat, 9 AM–6 PM IST. Booked outside these hours? We call you first thing the next working morning.
Compare the 3 plansFrequently asked questions
Answers to the most common questions we get.
This page also covers
- Partnership deed drafting
- Capital, profit share, remuneration, admission and retirement clauses.
- Changes to the firm
- Adding or removing partners and updating the Registrar.
Official sources
Indus Tax is a private professional services firm and is not affiliated with any government authority. Rules and fees change — we confirm current positions before filing.
