carevkvgroup@gmail.com Mon–Sat · 10:00 AM – 7:00 PM
Tax VKV Group
Book Consultation Mon–Sat · 10:00 AM – 7:00 PM

Overview


A partnership firm remains the fastest, lowest-cost way for two or more people to run a business together: minimal formation formalities, simple taxation, and complete internal flexibility. The trade-off is unlimited liability — partners are personally liable for the firm's obligations — which is why the deed that governs the relationship deserves more care than the ten-minute template it usually gets.

We draft the deed around your actual arrangement: capital contributions, profit ratios, partner remuneration and interest structured with tax deductibility in mind, duties, and what happens on retirement, death or dispute. We then obtain the firm's PAN, complete registration with the Registrar of Firms (optional in law, but unregistered firms face real restrictions on enforcing claims in court), and prepare the bank account documentation.

Who needs this

  • Two or more people starting a business together with minimal formality
  • Family businesses formalising an existing informal arrangement
  • Traders and shops adding a partner and needing a deed and firm PAN
  • Existing unregistered firms that now need Registrar of Firms registration
  • Firms whose old deed needs reconstitution — partner admission, retirement or ratio change

Documents required

  • PAN and Aadhaar of all partners
  • Photographs of partners
  • Business address proof — utility bill with rent agreement/NOC, or ownership document
  • Agreed terms — capital contribution, profit-sharing ratio, remuneration and interest on capital

Your case may need one or two documents more or fewer — we confirm the exact checklist before starting.

How it works

  1. Terms settled

    A short working session to settle the terms that matter: capital, ratios, remuneration, drawing rights, and exit provisions. Ambiguity here is where partner disputes start.

  2. Deed drafted & executed

    The deed is drafted — with remuneration and interest clauses structured for income tax deductibility — reviewed by all partners, and executed on stamp paper of the correct value.

  3. PAN & registration

    The firm's PAN is obtained and the application is filed with the Registrar of Firms with the prescribed documents and fees. State processing times vary; we track it through.

  4. Bank & next registrations

    Current-account documentation is prepared, and we advise which registrations your firm needs next — GST, MSME/Udyam, professional tax — based on what it will actually do.

What you receive

  • Executed partnership deed (with a soft copy for your records)
  • Firm PAN card
  • Registrar of Firms registration certificate
  • Bank account documentation and a next-registrations checklist

Pricing

Fixed fee, quoted in writing before work begins. The fee depends on your business constitution and the complexity of the case, so we quote after a short (free) conversation — never after the work is done.

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Frequently asked questions

Formation isn't conditional on it — a firm exists once the deed is executed — but an unregistered firm cannot sue third parties or its own partners to enforce contractual rights, which is a serious handicap the day a dispute or bad debt arrives. For the modest cost involved, we recommend registering.

The firm is taxed as a separate entity at a flat rate on its income, and profit shares received by partners are exempt in their hands. Partner remuneration and interest on capital are deductible to the firm within statutory limits — but only if the deed authorises them correctly, which is exactly why deed drafting matters.

A partnership is cheaper and simpler; an LLP adds limited liability and a separate legal identity for somewhat more compliance. If the business carries meaningful risk — credit exposure, contracts, employees — the liability protection of an LLP usually justifies the upgrade. We'll tell you which fits your situation.

Yes, through a reconstitution deed (supplementary deed) recording the change, with the Registrar of Firms notified where the firm is registered. We handle admissions, retirements and ratio changes, including the tax considerations that come with them.