Registration of partnership firm is optional and at the discretion of the partners.

An application form along with fees is to be submitted to Registrar of Firms of the State in which firm is situated.

• Ability to file a case against third parties, and other partners
• Power to claim set-off against any third-party claim
• Easily convert into any other business structure

• Application for registration of partnership (Form A)
• Self attested copy of PAN Card/ Adhaar Card/ voterid/ driving licence
• Certified original copy of Partnership Deed
• Proof of principal place of business (ownership documents or rental/lease agreement)

• Prepare partnership Deed
• Generate Stamp paper as per state requirement
• Get deed printed & signed by partners along with Notary.
• Get register of https://haryanaindustries.gov.in/msme/firm/registration
• Download application form & get signed by partners
• Upload documents:-

-Certified application form

-Signed partnership Deed

-Rent Agreement/ Allotment letter for proof of address of principle place of

Business

• Get approved by registered office of the firm

Income tax at the rate of 30% of total income( surcharge 12% if income exceeds 1cr) & 4% cess is applicable.

1. Salary, bonus, commission, or remuneration paid to non-working partners.
2. Remuneration or interest paid to the partners which are not in accordance with the terms of the partnership deed.
3. If remuneration or interest paid to the partners is in accordance with the terms of the partnership deed but they relate to any period prior to the date of the partnership deed.

In addition to the above, interest paid to partners is in accordance with the terms of the partnership deed should not exceed 12% per annum. Also, remuneration paid to partners should be in accordance with the terms of the partnership deed and should not exceeds the following permissible limit:

1. On first Rs. 3 Lakhs of book profit or in the case of loss – Rs. 1,50,000 or 90% of book profit, whichever is more.

2. On the balance of the book profit – 60% of book profit.

(as per section 40(b) of Income tax Act 1961)

Partnership firms are required to file an income tax returns in form ITR 5.

The income tax return due date for most partnership firms is July 31 of the assessment year, if audit then 30th September.

Partnership firms that conform to any of the conditions below would be required to get the accounts audited:

1. Carrying on business and total sales exceed Rs.1 crore in the previous year.
2. Carrying on a profession and gross receipts in profession exceed Rs.50 lakhs in any previous year.

If a partnership firm entered into international transactions or specified domestic transactions a report must be furnished in Form No. 3CEB under section 92E. For partnership firms required to furnish Form 3CEB, the deadline for filing a tax return is 30th November.

*Obtain a report from an accountant and furnish such a report under form 3CEB and get certified by CA.