Partnership
in Kolkata

Step-by-Step Process

1. Partner Agreement & Capital Decision
   • Minimum 2 partners
   • Decide:
     • Capital contribution
     • Profit-sharing ratio
     • Roles & responsibilities
2. Drafting of Partnership Deed
   • Must include:
     • Firm name & address
     • Partner details
     • Profit/loss sharing
     • Dispute resolution clause
     • Admission/retirement clause
   • Printed on stamp paper (value as per West Bengal rules)
3. Execution of Partnership Deed
   • Signed by all partners
   • Notarization recommended
4. Apply for PAN of Partnership Firm
   • Separate PAN from partners
   • Mandatory for taxation and banking
5. Optional: Registration with Registrar of Firms
   • File application with:
     • Partnership deed
     • Partner affidavits
     • Address proof
   • Registered firms have stronger legal rights
6. GST Registration (If Applicable)
   • Mandatory as per turnover/activity
7. Open Current Bank Account
   • In firm name using PAN + partnership deed

✔ Partnership Firm becomes operational

Advantages

1. Easy to form and operate
2. Shared investment and responsibility
3. Low registration cost
4. Flexible management

Disadvantages

1. Unlimited liability of partners
2. Risk of disputes
3. Limited growth and funding options
4. No perpetual succession

FAQ

Q1. What is a partnership firm?

A partnership firm is a business where two or more individuals agree to share profits and responsibilities under a Partnership Deed governed by the Indian Partnership Act, 1932.

Q2. Is partnership registration compulsory in West Bengal?

No, registration is optional. However, unregistered firms cannot file legal cases, making registration highly recommended.

Q3. How many partners are allowed in a partnership firm?

• Minimum: 2 partners
• Maximum: 20 partners

Q4. What documents are required for partnership registration?

• PAN & Aadhaar of partners
• Partnership deed
• Business address proof
• Rent agreement + owner NOC

Q5. What is the liability of partners?

Partners have unlimited liability, meaning personal assets can be used to pay business debts.

Q6. Partnership vs LLP – which is better?

LLP is better if:

• You want limited liability
• You want better credibility
• You want structured compliance