Partnership Firm Registration in Delhi

Why registration matters: Section 69

A firm can carry on business without being registered, but Section 69 of the Indian Partnership Act puts three bars on an unregistered firm:

• the firm cannot file a suit against a third party to enforce a right arising from a contract;
• a partner cannot file a suit against the firm or the other partners to enforce a right under the deed or the Act; and
• the firm cannot claim a set-off above Rs 100 in a suit against it.

A partner can still sue for dissolution of the firm and for accounts. Banks and many customers also ask for the registration certificate.

What the partnership deed should contain

• Name of the firm, nature of business and principal place of business.
• Names, addresses and PAN of the partners, and the date the partnership starts.
• Capital contributed by each partner and the profit and loss sharing ratio.
• Interest on capital (deductible for the firm up to 12% simple a year) and remuneration to working partners, with the method of computing it. Both are deductible only if the deed authorises them.
• Powers of partners, admission, retirement and death, duration, dissolution and dispute resolution.

The partnership deed template covers these clauses. Later changes use the reconstitution deed and, on closure, the dissolution deed. A partnership can have at most 50 partners (Section 464 of the Companies Act, 2013 read with Rule 10 of the Companies (Miscellaneous) Rules, 2014).

Stamp duty on the deed in Delhi

A partnership deed is an “instrument of partnership” under Article 46 of Schedule I to the Indian Stamp Act, 1899, as it applies in Delhi. The duty depends on the capital contributed and is paid by buying e-stamp paper (through SHCIL or its authorised centres). Secondary sources quote different figures for Delhi, so check the current Delhi schedule before buying the paper. Registering the deed with the Sub-Registrar is a separate, optional step.

Form No. 1 to the Registrar of Firms, Delhi

Under Section 58, the application states the firm name, the principal and other places of business, the date each partner joined, their names and permanent addresses, and the duration of the firm. The Delhi Form No. 1 (Rule 4(II)) also asks whether any minor is admitted to the benefits of partnership. It must be signed by all partners (or agents specially authorised by them) and each partner verifies the particulars in the presence of a witness who is a Gazetted Officer, Advocate, Magistrate or Registered Accountant. The filing fee printed on the form is Rs 3 by court fee stamp.

In Delhi, firms are registered by the Registrar of Firms in each revenue district, and applications are made through the Revenue Department’s Firms and Societies Management System (FSMIS): create an account with a mobile number, choose the district, enter the firm and partner details, and upload Form No. 1, the affidavit, an attested copy of the deed and proof of the principal place of business. Once satisfied, the Registrar enters the firm in the Register of Firms (Section 59) and the certificate can be downloaded. A filled layout of the form is in the Form No. 1 (Delhi) template.

Changes later (name, place of business, partners, dissolution) are notified to the Registrar in the prescribed forms (Sections 60 to 63).

After registration: PAN, bank, GST and tax

• PAN in the firm’s name, using the deed (and the registration certificate if available). Then the bank account in the firm’s name.
• TAN if the firm will deduct tax: on salaries, rent, contractors, and on salary, remuneration or interest paid to partners above Rs 20,000 a year at 10% (Section 194T up to 31 March 2026; Section 393(3), Table Sl. No. 7 of the 2025 Act from 1 April 2026).
• GST if the aggregate turnover exceeds Rs 40 lakh (goods) or Rs 20 lakh (services) in Delhi, or in cases where registration is compulsory regardless of turnover. See GST registration in Delhi.
• Udyam registration for MSME benefits; see the MSME classification tool.
• Income tax: a firm pays tax at 30%, plus a 12% surcharge where income exceeds Rs 1 crore and 4% cess. Interest to partners up to 12% and remuneration to working partners within the limits linked to book profit are deductible (Section 40(b) of the 1961 Act, and Section 35(e) of the Income-tax Act, 2025 from Tax Year 2026-27: for the first Rs 6 lakh of book profit, or a loss, the higher of Rs 3 lakh or 90% of book profit, and 60% of the balance). The partner’s share of profit is exempt in the partner’s hands; interest and remuneration are taxable to the partner. The firm files ITR-5; for AY 2026-27 the due date for firms not requiring audit was 31 August 2026.

Partnership firm or LLP?

A registered firm can later convert into an LLP. For the LLP route, see LLP registration and the LLP agreement template.

Official sources

• The Indian Partnership Act, 1932 (India Code)
• Delhi Form No. 1 (Rule 4(II)), application for registration of a firm
• Government of NCT of Delhi: Partnership Act, documents for registration
• FSMIS, Revenue Department, GNCTD (online registration of firms)
• Registrar of Societies and Firms (District East), specimen Forms 1 to 7