Soft copies are sufficient. The entire process is handled remotely — no office visits needed.
A well-drafted Partnership Deed is the foundation of a healthy business relationship. We don't use generic templates — every deed we prepare reflects your specific profit-sharing arrangement, duties, and exit terms. Getting this right at the start saves costly disputes later.
What is a Partnership firm?
A Partnership firm is a business arrangement where two or more individuals agree to share profits and losses from a business carried on by all or any one of them acting for all. It is governed by the Indian Partnership Act, 1932. A partnership firm requires a minimum of 2 partners and can have a maximum of 20 partners (10 for banking businesses).
Who can become a partner in a firm?
Any person competent to contract under the Indian Contract Act, 1872 can be a partner. This includes individuals who are major (18 years or above), of sound mind, and not disqualified by law. Minors can be admitted to the benefits of partnership (not as full partners) with the consent of all other partners.
Can a partner transfer their rights in a firm?
A partner may transfer their interest (share in profits) in the firm to a third party, but the transferee does not automatically become a partner. The transferee is only entitled to receive the transferring partner's share of profits — they have no right to interfere in the management of the firm or inspect the books. Admission as a full partner requires consent of all existing partners.
Can a Hindu Undivided Family (HUF) become a partner?
No. A HUF as such cannot become a partner in a firm. However, individual members of a HUF can join a partnership in their personal capacity. The Karta or any adult member may become a partner in their individual name.
Can one firm become a partner of another firm?
No. Under the Indian Partnership Act, 1932, a partnership firm is not a legal person and therefore cannot become a partner in another firm. Individual partners may, however, join other firms in their personal capacities subject to the restrictions in their own firm's deed.
How can a new partner be admitted to the firm?
A new partner can be admitted to a firm only with the consent of all existing partners, unless otherwise agreed in the Partnership Deed. Admission changes the constitution of the firm, and the deed should be amended (supplementary deed) to reflect the new profit-sharing ratios, capital contributions, and terms.
How can a Partnership firm be dissolved?
A partnership firm can be dissolved in several ways:
- By agreement — all partners consent to dissolution
- Compulsory dissolution — if all partners become insolvent or if the business becomes unlawful
- On the happening of contingencies — expiry of the fixed term, completion of the venture, death or insolvency of a partner (if the deed so provides)
- By notice — in a partnership at will, any partner may give notice of dissolution
- By court order — on grounds like incapacity, misconduct, persistent breach of the deed, etc.
Do partners need to visit the Registrar of Firms office?
Physical visits are typically not required. Most states now accept applications online or via post. EZTax handles the filing on your behalf. Once the Registrar processes the application and issues the Registration Certificate, we share it with you digitally. Requirements may vary slightly by state — our expert will advise on any state-specific steps.