A General Partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in the Partnership Deed. This structure is thought to have lost its relevance since the introduction of the Limited Liability Partnership (LLP) because its partners have unlimited liability, which means they are personally liable for the debts of the business. However, low costs, ease of setting up and minimal compliance requirements make it a sensible option for some, such as home businesses that are unlikely to take on any debt. Registration is optional for General Partnerships. In India we register the Company or Firm in Partnership under the Indian Partnership Act 1932. There could be 2,3,4,5 and more partners in the company.

The requirement to register the partnership Firm or Company.

• ID proof of all the Partners – Voter ID or DL or Passport.
• Pan Card of all Partners
• One Partnership Deed between the partners which show the share of each partners.
• One electricity bill or water bill of office premises.
• NOC from the landlord of the premises.
• Name of the company and nature of business.
• Every partner needs to verify and sign the application.

Ensure that the following documents and prescribed fees are enclosed with the registration application:

• Application for Registration in the prescribed Form – I
  – Duly filled Specimen of Affidavit
  – Certified copy of the Partnership deed
  – Proof of ownership of the place of business or the rental/lease agreement thereof
• It may be noted here that the name of your partnership firm should not “contain any words which may express or imply the approval or patronage of the government except where the government has given its written consent for the use of such words as part of the firm’s name”.
• Once the Registrar of Firms is satisfied that the application procedure has been duly complied with, he shall record an entry of the statement in the Register of Firms and issue a Certificate of Registration.