Forming a partnership firm in India is a popular and cost-effective way for two or more individuals to start a business. One of the first and most essential steps in this process is drafting and registering a partnership deed. But how much does it actually cost to get one made and registered? In this blog, we’ll break down the partnership deed charges in India, along with the key elements involved.
What is a Partnership Deed?
A partnership deed is a legal document that outlines the rights, duties, and responsibilities of all partners involved in a business. It includes important clauses such as capital contribution, profit-sharing ratio, decision-making authority, and dispute resolution. While not mandatory to register the deed, it is highly advisable as it strengthens legal standing in case of conflicts.
Components of Partnership Deed Charges in India
Let’s break down the typical costs involved in creating and registering a partnership deed in India:
1. Stamp Duty
Stamp duty is one of the most significant components of partnership deed charges. The rate depends on the state in which the firm is registered and the capital investment mentioned in the deed. On average, stamp duty can range from ₹200 to ₹2,000.
For example:
In Delhi: ₹200 for partnership deed.
In Maharashtra: Stamp duty is calculated as per capital contribution—₹500 for capital up to ₹50,000 and ₹1,000 for capital above ₹50,000.
2. Notary Charges
After preparing the deed and affixing the required stamp duty, it must be notarized. Notary fees generally range from ₹100 to ₹500, depending on the location and the notary’s charges.
3. Drafting Charges
If you hire a professional like a Chartered Accountant or lawyer to draft the partnership deed, you may incur drafting fees of around ₹1,000 to ₹5,000, depending on complexity and experience of the professional.
4. Registration Fees (Optional but Recommended)
Registering the partnership deed with the Registrar of Firms adds credibility. The registration fee is generally ₹1,000, but it varies slightly by state.
Total Estimated Cost
ComponentCost RangeStamp Duty₹200 – ₹2,000Notary Charges₹100 – ₹500Drafting Fees₹1,000 – ₹5,000Registration Fee₹1,000 (approx.)Total₹2,300 – ₹8,500
Why Choose the Best CA Firm?
Hiring the best CA firm can simplify the entire process—from drafting the deed, ensuring legal compliance, and handling registration. A reputed firm will also help you reduce unnecessary expenses and avoid legal complications in the future. They offer end-to-end services, so you don't have to worry about missing any formalities.
Final Thoughts
While the cost of preparing a partnership deed may vary, it's a small price to pay for long-term legal protection and clarity among partners. Understanding partnership deed charges helps you budget effectively and ensures smooth registration. For best results, always consult with the best CA firm in your area to handle the documentation professionally.
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