A partnership firm is the fastest multi-owner structure to start — and the one where a lazy deed causes the most damage later. The engagement centres on a deed that actually governs (capital, ratios, drawings, retirement, disputes) and an honest briefing on what unregistered status costs.
| Item | Position |
|---|---|
| Formation | Deed + PAN can have you operating in days |
| Registration | Optional under the Partnership Act — but unregistered firms face suit restrictions (Section 69) |
| Liability | Unlimited and joint — the honest downside versus an LLP |
| Tax | Firm taxed at 30%; partner remuneration/interest rules under the Income-tax Act apply |
| Best for | Small and family businesses prioritising simplicity |
Executed deed with stamped copies, PAN/TAN, registrations applied, and a one-page summary of the deed's key terms every partner signs off on — so nobody later claims they didn't know the ratio.
Partners' PAN, Aadhaar, photos; business address proof; agreed capital, ratios, remuneration and interest terms.
Commercial terms are the partners' decisions, made before drafting starts; stamp duty per state rules is borne by the firm. Disclosure among partners must be honest — the deed cannot fix concealed intentions.
Partner-dispute representation, conversion to LLP/company (separate engagements), and sector-specific licences.
Should we register with the Registrar of Firms?
Usually yes: an unregistered firm cannot sue third parties or its own partners to enforce contractual rights (Section 69) — a serious handicap discovered at the worst time. The briefing covers your state's process.
Can the deed be changed later?
Yes, by supplementary deed with the same formality. Ratios, remuneration and partners change as businesses evolve; the original deed anticipates the mechanics.
Partnership or LLP for us?
If liability exposure or client-facing credibility matters, the LLP usually wins for a modest compliance increase. The comparison is run on your facts before you commit either way.
What taxes apply to partners personally?
Remuneration and interest allowed to the firm are taxable in partners' hands per the Act's limits; drawings are not income. The setup briefing includes this so the first year's returns hold together.
The applicable scope, documentation, professional responsibilities and timelines are agreed in an engagement letter before commencement.
LLP RegistrationIncome Tax ComplianceBookkeeping & AccountingRequest a Scope DiscussionThis page describes the service in general terms as on 6 August 2026 and is not professional advice or an assurance of any outcome. Registrations, filings, refunds and departmental outcomes depend on facts and the concerned authority. Figures and due dates change; verify current positions before acting.
| Compliance | Due | Note |
|---|---|---|
| DPT-3 (deposits/loans return) | 30 June (annual) | Covers director loans and advances |
| DIR-3 KYC | 30 September | Now triennial for unchanged particulars |
| AGM (other than first) | 30 September | First AGM: 9 months from first FY end |
| AOC-4 / MGT-7 | 30 / 60 days from AGM | Rs 100 per day per form if late |
| MSME Form 1 | 30 April / 31 October | If MSE dues pending beyond 45 days |
| CCFS-2026 amnesty | Till 31 August 2026 | 90% additional-fee waiver + immunity |
Dates as generally applicable on 15 July 2026; extensions/notifications can change them — confirm current dates before relying.
Ratios, drawings, remuneration, exits agreed.
Drafted, stamped, signed.
PAN, GST, RoF as chosen.
Terms summary + compliance basics.
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