Partnership Firm & Proprietorship Registration

Simplest Way to Start Your Business Legally with Rajasthan Filings

Starting a business begins with structure. For beginners, Partnership Firm and Sole Proprietorship are the most convenient, cost-effective and flexible business forms in India.

At Rajasthan Filings, we assist small traders, shopkeepers, consultants, and professionals in registering their business under official frameworks such as Udyam (MSME), GST, and Shop & Establishment Act—making your business legally valid, tax-compliant, and trusted.

🔹 1. Understanding Basic Business Structures

🧾 Sole Proprietorship

A business owned and managed by one person. There is no legal separation between the owner and the business.

Key Points:

• Complete ownership and control with one individual

• Minimal registration and reporting formalities

• Business income taxed as personal income

• Quick bank-account opening and easy GST registration

• Best suited for micro and local businesses

Common Examples: Retail shops • Freelancers • Consultants • Small traders

🤝 Partnership Firm

Two or more people join to carry on a business and share profits under an agreed Partnership Deed governed by the Indian Partnership Act, 1932.

Key Points:

• Minimum 2 partners required (no statutory upper limit)

• Partners decide profit ratios and duties through the deed

• Option to register with the Registrar of Firms for legal proof

• Collective management and shared risk / reward

• Separate PAN and bank account in firm’s name

Common Examples: Family businesses • Small manufacturers • Professional firms

⚖️ 2. Comparison at a Glance

🗂️ 3. Documents Required

For Sole Proprietorship

• PAN and Aadhaar of Proprietor

• Recent passport-size photograph

• Address proof of business location

• Electricity bill / Rent agreement / Owner NOC

• Udyam (MSME) registration details

• Bank account application supporting documents

For Partnership Firm

• PAN & Aadhaar of all Partners

• Address proof of Partners (Voter ID / DL / Passport)

• Office address proof with utility bill or rent agreement

• Drafted Partnership Deed on stamp paper

• Firm name & business objective details

• Digital signatures (if filing online)

🧩 4. Step-by-Step Process

1️⃣ Consultation & Structure Selection

• Understand your business model and choose between Proprietorship or Partnership.

• Identify licences or registrations required (GST, FSSAI, Shops Act, etc.).

2️⃣ Document Preparation & Verification

• Collect identity, address, and ownership proofs.

• Verify name availability and draft business objective.

3️⃣ Legal Drafting & Filing

• Create Partnership Deed with all terms of capital, profit sharing, duties and dispute resolution.

• For Proprietorship, file Udyam (MSME) registration and GST if applicable.

4️⃣ Registration with Authorities

• File application to Registrar of Firms (for Partnership) or MSME portal (for Proprietorship).

• Obtain PAN, TAN and business licences as required.

5️⃣ Delivery of Certificates & Activation

• Receive digital registration certificate within 2–5 working days.

• Open current account and commence operations immediately.

📘 5. Importance of Official Registration

• Provides legal proof of business existence

• Builds trust with banks, clients and vendors

• Enables GST compliance and invoice issuance

• Grants eligibility for MSME benefits and loan schemes

• Protects the business name and brand identity

• Allows participation in government tenders and contracts

• Simplifies tax filing and audit procedures

• Helps in future conversion to LLP or Private Limited Company

📄 6. Partnership Deed — Core Clauses Included by Rajasthan Filings

• Business Name and Address

• Details of Each Partner (Name, Age, Address, PAN)

• Nature and Scope of Business Activity

• Capital Contribution and Profit Sharing Ratio

• Duties and Obligations of Partners

• Rights of Partners in Decision Making

• Interest on Capital or Drawings (if any)

• Admission or Retirement of Partners

• Method for Settlement of Accounts and Disputes

• Duration of Partnership (Fixed or At Will)

All deeds drafted by Rajasthan Filings are legally sound, digitally signed, and accepted by banks and government departments.

🧠 7. Tax & Compliance Highlights

• Proprietor files business income in individual ITR (ITR-3 or ITR-4).

• Partnership Firm files separate ITR-5 under the Income Tax Act.

• Both entities must maintain books of accounts and preserve bills for audit.

• Registration under GST mandatory if turnover exceeds ₹20 lakh (service) / ₹40 lakh (goods).

• Partnership Firms must deduct TDS on salaries and contract payments where applicable.

• Annual renewal of MSME and business licence recommended to maintain validity.

💼 8. Why Businesses Prefer Rajasthan Filings

• End-to-end service from registration to tax filing

• Experienced team of CA, CS and legal professionals

• Nationwide service coverage and online process

• Transparent documentation and status updates

• Ready drafts for bank accounts and loan applications

• Option to upgrade to LLP / Private Limited without fresh PAN

• Dedicated relationship manager for each client

• Free post-registration consultation for GST and ITR

🚀 9. Take the Next Step

Make your business official today with Rajasthan Filings.
We streamline the entire process—from paperwork to certificates—so you can focus on growing your business.