Partnership Firm (Indian Partnership Act, 1932)India
What it takes to form, own and run a general partnership in India, and how its profit is taxed. Each figure links to the page it was read from.
This company type
At a glance
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Every partner is liable, jointly with all the other partners and also severally, for all acts of the firm done while he is a partner.
The registry’s and the law’s own pages do not mention it.
The registry’s and the law’s own pages do not mention it.
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For the AY 2026-27, a Partnership Firm (including LLP) is taxable at 30%.
Form it
Who registers it
- Registry
- Registrar of Firms of the State in which the firm has a place of business
- Formed without visiting
- Not stated
The registry’s and the law’s own pages do not mention it.
- Formed online
- Not stated
The registry’s and the law’s own pages do not mention it.
What it takes to form
Not in our records A notary, A resident director, Paying up the capital: none of these is in our records for the Partnership Firm (Indian Partnership Act, 1932).
Own it
Who may own and run it
Not in our records Directors, Shareholders, Members, A local company secretary, A local registered agent: none of these is in our records for the Partnership Firm (Indian Partnership Act, 1932).
Each year, at the registry
Not in our records Annual registry fee, Accounts on the public record, Audit for a small company, Audit: none of these is in our records for the Partnership Firm (Indian Partnership Act, 1932).
Important dates
When each obligation falls due, as the authority states it.
Not in our records No dates for the Partnership Firm (Indian Partnership Act, 1932) are in our records.
What is public
Not in our records What the register shows the public is not in our records for the Partnership Firm (Indian Partnership Act, 1932).
Tax
Tax on profit
How this company type is taxed, which can differ from its place’s headline rate.
Flat · 30%+1 regime
For AY 2026-27 a partnership firm (including an LLP) is taxable at 30%, with surcharge and cess extra.
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For the AY 2026-27, a Partnership Firm (including LLP) is taxable at 30%.
Work it out on a profit figure: the company’s tax, the owner’s, and what is left.
Special regimes that may apply
- Special provisions in respect of newly established Units in Special Economic Zones free zone
Newly established units in Special Economic Zones Income-tax Act, 2025, section 144
Whether a company qualifies depends on its activity and conditions set in each statute.
- CFC rules in India
- Not in our records
Close it
Closing it
The other end, which most guides leave out.
Not in our records Route, Statutory fee: none of these is in our records for the Partnership Firm (Indian Partnership Act, 1932).
Every business in India
GST
- The tax
- GST (Goods and Services Tax)
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Streamlined Rate Structure: The tax structure has primarily moved to two slabs - 5% and 18%.
- Standard rate
- 18%
Since 22 September 2025 the structure has primarily two slabs, 5% and 18%, with a 40% rate on luxury and sin goods; the 12% and 28% slabs were discontinued.
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Streamlined Rate Structure: The tax structure has primarily moved to two slabs - 5% and 18%.
- Other rates
- 5% The merit rate on essential goods and specified services (for example leather, footwear up to ₹2,500 a pair, textiles, packaged food)
- 40% Luxury and sin goods: lottery and online gaming, tobacco, aerated drinks, high-end cars, yachts and private aircraft
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A 40% rate on luxury and sin goods has been introduced to help maintain revenue balance while ensuring a fairer tax structure . This includes lottery/ online gaming, tobacco, aerated drinks, high-end cars, yachts and private aircrafts.
- Registration threshold
- INR 4,000,000 · about €37,691
aggregate turnover: ₹40 lakh for a supplier of goods; ₹20 lakh for a supplier of services (₹10 lakh in special category states); financial year
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Higher Exemptions: Effective from April 2019, the GST registration limit for goods suppliers was increased from ₹20 lakh to ₹40 lakh
- Voluntary registration
- Yes
A person not liable to be registered under section 22 or 24 of the CGST Act may register voluntarily, and all provisions applying to a registered person then apply.
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Section 25(3) of the CGST Act, 2017 states that “a person, though not liable to be registered under section 22 or section 24 of the CGST Act, 2017 may get himself registered voluntarily
- A foreign company
- Registers from its first taxable supply
CGST Act s.24(v): non-resident taxable persons making taxable supply must be registered notwithstanding the s.22(1) turnover threshold, and under s.25(1) a non-resident taxable person applies at least five days before commencing business and (s.27) makes an advance deposit of the estimated tax. Whether a resident representative is required is not stated in the Act sections read (CBIC's 'Updated 30.09.2020' text); it is a matter of the CGST Rules.
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Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act
- Returns filed
- Depends on the business
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Simpler Return Filings: The quarterly return filing and monthly payment (QRMP) scheme has been introduced in 2020 to allow for quarterly filing of returns . It covers taxpayers with annual turnover of up to ₹5 crore.
- Tax authority
- Registration page read 2026-10-25
Payment and banking services
3 services name India on their own list: Paysera, Airwallex, Stripe. Each provider, and what a listing means.
Reference
Its name and code
- Kind
- General partnershipDerived our grouping, the same words in every country
- Name in law
- Partnership Firm (Indian Partnership Act, 1932)
- ISO 20275 code
- A0PSSecondary GLEIF, Entity Legal Forms code list