Partnership Firms in Mumbai
Partnership firms remain the traditional structure for many of Mumbai's family businesses and trading houses, from textile and hardware traders in Kalbadevi and Masjid Bunder to wholesale distributors with warehouses in Bhiwandi. A partnership is quick to set up, cheap to run, and governed mostly by the deed the partners sign.
Its weakness is unlimited liability. If you are starting something new, it is worth comparing a partnership with an LLP before deciding.
What the Partnership Deed Should Cover
- Name, address and business of the firm
- Capital contributed by each partner
- Profit and loss sharing ratio
- Interest on capital and remuneration to working partners, within income tax limits
- Powers and duties of partners, and who can sign for the firm
- Admission, retirement and death of partners, and dissolution
A well-drafted deed avoids most partner disputes, and the clauses on remuneration and interest also decide how much of the firm's profit is deductible for income tax.
Registration Process in Maharashtra
- Drafting: we draft the deed around your commercial arrangement.
- Stamping: the deed is stamped under the Maharashtra Stamp Act; duty depends on capital.
- Signing and notarisation by all partners.
- Registrar of Firms: we file the registration application with the Registrar of Firms, Maharashtra, with the deed and partners' documents.
- PAN and bank account in the firm's name once the deed is executed.
Documents Required
- PAN, Aadhaar and photographs of all partners
- Address proof of the place of business: utility bill and owner's NOC, plus rent agreement if rented
- Details of capital and the profit sharing ratio
After Registration
- GST registration if turnover crosses the threshold or you trade inter-state
- Shop and Establishment registration or intimation for your premises
- Maharashtra professional tax enrolment for the firm and registration once you employ staff
- Books of accounts and an annual income tax return, with a tax audit where turnover requires it
Serving Clients Across Mumbai
Kalbadevi, Masjid Bunder, Crawford Market, Dadar, Bhuleshwar, Andheri, Malad, Borivali, Ghatkopar, Mulund, Bhiwandi, Thane and Vashi, all handled online.
Get a quote
Depends on capital and number of partners
- Partnership deed drafting
- Stamp duty calculation
- Registrar of Firms application
- PAN for the firm
- Bank account support
- GST and professional tax, if needed
Frequently Asked Questions
Is registration of a partnership firm compulsory?
Under the Indian Partnership Act, 1932, a firm can exist without registration, but an unregistered firm and its partners cannot file a suit to enforce rights arising from a contract against third parties, or against each other. That is why most firms register, especially those dealing with large customers or banks.
How much stamp duty is payable on a partnership deed in Maharashtra?
Stamp duty on a partnership deed in Maharashtra is charged under the Maharashtra Stamp Act and depends mainly on the capital contributed by the partners. We calculate the exact duty for your capital and arrange e-stamping.
How many partners can a firm have?
At least two. The Companies Act limits a partnership firm to a maximum of 50 partners.
Do partners have limited liability?
No. Partners in a firm have unlimited and joint liability for the firm's debts, so their personal assets are at risk. If you want limited liability with a similar structure, consider an LLP.
Can an existing partnership firm be converted into an LLP?
Yes. A registered partnership firm can be converted into an LLP under the LLP Act, transferring its assets, liabilities and contracts to the LLP, as long as all partners become partners of the LLP.
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