A Partnership Firm is governed by the Indian Partnership Act, 1932 and is created by a written Partnership Deed between two or more partners. Unlike Pvt Ltd or LLP, partnership firms are not separate legal entities — partners are personally liable for the firm's debts. They remain popular among professionals (CAs, doctors, lawyers), small trading businesses, and family enterprises where unlimited liability is acceptable and tax flexibility (firm taxed at 30% + remuneration to partners is deductible) is valuable.
RegisterEase drafts partnership deeds covering all critical clauses: name and registered place, nature of business, capital contribution by each partner (with valuation if non-cash), profit-sharing ratio, interest on capital (allowable up to 12% under Section 40(b)), remuneration to working partners (capped at ₹3 lakh / 60% of book profit / 40% of additional profit — per Section 40(b)), admission of new partners, retirement / expulsion mechanism, death of a partner, and dispute resolution (arbitration vs court).
Pricing: ₹1,999 for standard 2-3 partner deeds, ₹2,999 for 4+ partner deeds or deeds with non-cash contribution (which need separate valuation schedules). Includes e-stamping on appropriate state-rate stamp paper (varies from ₹500 in Maharashtra to ₹5,000+ in Karnataka for partnerships with high capital), notarisation (mandatory for evidentiary value), and registration with the Registrar of Firms at additional ₹2,499 (highly recommended — only registered firms can sue or be sued, recover dues, or partition during dissolution).
Registered vs Unregistered — Section 69 of the Partnership Act creates a major disability for unregistered firms: they cannot file civil suits to recover dues from third parties, cannot file suits between partners, and cannot defend cross-suits effectively. Registration is one-time, costs ~₹2,499 with us, and unlocks the full enforceability of your partnership rights. We strongly recommend registration unless the firm is a very temporary arrangement.