In India, a partnership firm is an important business arrangement. It is a business model in which at least two people work together. A partnership firm is an entity where two or more people start a business together and share its profits in an agreed ratio. Such a business can involve a number of business activities, professions, and industries.

The Indian Partnership Act of 1932 governs partnership firms in India. People working together are called partners. A partnership is formed on the basis of a contract called a partnership deed. This article explains the relationships, rights, and responsibilities of partners.

Partnership Registration:

A partnership firm must be registered with the firm registrar by its partners. Partners must register their firm with the firm registrar of the state where the firm is. Partners can apply for registration at any time during the formation or operation of the firm as this registration is not mandatory.

Partnership registration requires two or more people to get together, agree on the name of the firm, and make a partnership deed. Note that the partner cannot be a Hindu spouse or a member of an undivided family.

The following documents are required to register a partnership firm:

• Application for Partnership Registration (Form 1):
• Certified original copy of partnership deed;
• PAN card and address proof of partners; PAN card and address proof of the firm;
• Proof of principal place of business (rent/lease agreement or ownership document).