How to Set Up a Partnership Firm?

Registering a partnership firm is easy and you don’t need to follow a complex procedure for application. However, setting up a firm is not compulsory but if the partners want the legal benefits, registering a partnership firm is mandatory. 

So it is advisable to register a firm under the Partnership Act of 1932. Below is a process to set up a partnership firm and register it with the Startup India Program. After completing the registration, you have to follow the regulations and compliances. 

Process of Registering a Partnership Firm

The following are the steps that must be followed to complete the process of partnership firm registration.

Step 1: Choose a Unique Name

Before taking any name and using it to build a brand, you must check that the name will not match the name of an existing firm. For this, you can visit the website of MCA fill in the name and check if it is unique or not. Avoid half-similar names as well for example: if Adidas is already available then don’t use the word similar to this name. As it will affect the credibility of the brand.

Step 2: Draft a Partnership Deed

Create a partnership deed which mentions the details of partners, and the decision on which all agreed such as profit/loss sharing ratio, capital contribution, commission/salaHow to Set Up a Partnership Firm?ries, rights, duties and obligations. The deed is the foundation of the partnership

Step 3: Execute a Partnership Deed

After drafting the deed format, it must be executed in the firm with the signs of partners and witnesses. Along with this, the stamp duty must be paid as prescribed in the Stamp Act.

Step 4: Prepare Documents and Submit Application

Prepare documents that are required to set up a partnership such as a copy of the partnership deed, PAN card and address proof of partners, GST registration certificate and others. Apply for registration along with the documents to the Registrar of Firms (RoF) to the concerned state government.

Step 5: Get Approval for Registration Certificate

The RoF will check the authenticity of the application and documents. Once the authority approves an application then it issues you the certificate of registration. It will be sent to your mail ID that you shared while applying. 

How to Register a Partnership with Startup India?

Below are the steps that must be followed to register your partnership firm with the Startup India program. Registering the firm with the Startup program has multiple benefits, so you must obtain a recognition number.

Create a Profile on the Startup India Website

1. Visit the website of Startup India.
2. Fill in the required information.
3. Enter the OTP sent to your email ID or mobile number.
4. Click on the submit button. 

Obtain Recognition Number

1. To get DPIIT Recognition, click on the link for registration from the Dashboard.
2. You will be redirected to a new page, fill in the details and click on submit.
3. Upload the documents such as PAN card, partner details, proof of website and pitch deck, Certification of Incorporation, Trademark or Patent details (if you have any).
4. After completing the process you will receive a recognition number for the startup. Lastly, you will receive the certificate after two days of validating the documents.