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Unregistered Partnership

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Unregistered Partnership

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Unregistered Partnership

A partnership is an arrangement in which two or more individuals share the profits and liabilities of a business venture. Various arrangements are possible: all partners might share liabilities and profits equally, or some partners may have limited liability.

Not every partner is necessarily involved in the management and day-to-day operations of the venture. In some jurisdictions, partnerships enjoy favorable tax treatment relative to corporations.This Act may be called the Indian Partnership Act, 1932. It extends to the whole of India except the State of Jammu and Kashmir.


Tax Benefits of Forming a General Partnership

General partnerships do not pay income tax. However, the owners or partners of a general partnership do. As with sole proprietorships and limited liability companies, partnerships are pass-through tax entities. This means the profits and losses of a partnership trickle down to the business’ owners, who must declare their share of the business’ income on their personal tax returns. Partnerships do not have to calculate or pay estimated taxes.


Taxation of partnership

The tax will be payable at a flat rate of 30% plus 3% Education cess & Secondary and Higher Education cess on the total of income tax and surcharge.


In India, Partnership firms are of 3 Types:

  1. Unregistered Partnership Deed
  2. Partnership Registered with magistrate
  3. Limited Liability Partnership


The deed generally contains the following particulars

  • Name of the firm.
  • Nature of the business to be carried out.
  • Names of the partners.
  • The town and the place where business will be carried on.
  • The amount of capital to be contributed by each partner.
  • Loans and advances by partners and the interest payable on them.
  • A number of drawings by each partner and the rate of interest allowed thereon.
  • Duties and powers of each partner.
  • Any other terms and conditions to run the business.


Package Details (Unregistered Partnership firm)
  • All expenses and notary fees
  • Drafting of Partnership Deed
  • Franking & Notary of Partnership Deed
  • PAN number
  • TAN number
  • Firm seal
  • Professional Fees

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Unregistered Partnership
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