Partnership Firm Registration in India: FAQs

Dec 5, 2025
Private Limited Company vs. Limited Liability Partnerships

Registering a Partnership Firm is a popular choice for entrepreneurs coming together to build a business with shared responsibilities. It allows you to pool capital and skills while offering more flexibility than corporate structures.

To help you navigate the legalities, we’ve compiled the ultimate guide of frequently asked questions (FAQs) about drafting deeds, registration, and managing partner liabilities.

Table of Contents

Section 1: Understanding the Basics of Partnership Firms

1. What is a Partnership Firm?

A Partnership Firm is a business structure where two or more people come together to run a business and share profits as per a partnership agreement. It is governed by the Indian Partnership Act, 1932.

2. Is a Partnership Firm a separate legal entity?

No. A Partnership Firm is not a separate legal entity like a company. Partners and the firm are legally the same entity.

3. Do partners have limited liability?

No. Partners in a Partnership Firm have unlimited liability. Their personal assets may be used to settle business debts.

4. What is the difference between a Partnership and an LLP?

A Partnership Firm and an LLP differ significantly in structure, liability, and credibility. In a traditional Partnership Firm, partners have unlimited personal liability, and the firm is not considered a separate legal entity. It operates under the Indian Partnership Act, 1932 and does not have any central registration system, which often makes it riskier and less preferred for scaling or external investment. 

In contrast, an LLP (Limited Liability Partnership) provides limited liability protection to its partners and is treated as a separate legal entity under the LLP Act, 2008. LLPs are centrally registered with the Ministry of Corporate Affairs (MCA), making them more structured, compliant, and credible, especially for businesses seeking growth, partnerships, or external funding.

Related Read: What is the difference between Partnership and Limited Liability Partnership?

5. What are the types of Partnership Firms in India?

  1. Registered Partnership Firm
  2. Unregistered Partnership Firm

Both operate legally, but registered firms have more legal protections.

6. Is it mandatory to register a Partnership Firm?

No. A Partnership Firm may be registered or unregistered. However, registered firms enjoy more legal rights and protection than unregistered firms.

7. What are the advantages of registering a Partnership Firm?

Registration provides:

  • Ability to sue third parties
  • Ability to enforce contractual rights
  • Higher credibility
  • Protection against partner disputes
  • Easier banking & compliance

Related Read: What is a Partnership?

Section 2: Requirements, Eligibility and The Partnership Deed

8. What is a Partnership Deed?

It is a legal agreement that defines:

  • Roles & responsibilities of partners
  • Profit-sharing ratios
  • Capital contribution
  • Decision-making rights
  • Admission, retirement, and removal of partners
  • Dispute-resolution terms

 It must be printed on stamp paper, signed by all partners, and often notarised.

9. Is a Partnership Deed mandatory?

Yes. It is the most crucial document. Without a deed, legal rights are unclear, and disputes become common.

10. Is notarisation of the Partnership Deed mandatory?

Not mandatory under law, but strongly recommended for evidentiary value and banking processes.

11. What is the validity of a Partnership Deed?

It is valid until:

  • Dissolution, or
  • Any terms require renewal, or
  • Partners mutually amend it

12. How many partners are required to start a Partnership Firm?

Minimum: 2 partners
Maximum: 20 partners (for general business)

13. Can minors be partners?

A minor cannot be a partner, but can be admitted to the benefits of partnership with guardian consent.

14. Is there a minimum capital requirement to start a Partnership Firm?

No. A Partnership Firm can start with any amount of capital.

15. What documents are required to register a Partnership Firm?

Common documents:

  • PAN & Aadhaar of partners
  • Passport-size photographs
  • Address proof of partners
  • Proof of business address (electricity bill/rent agreement)
  • Partnership Deed (most important)

Related Read: Know more about the Partnership Deed for Firms in India 

Section 3: The Registration Process, Costs and Timelines

16. How is a Partnership Firm registered?

To register:

  1. Draft the Partnership Deed
  2. Pay stamp duty (state-specific)
  3. Notarise the deed
  4. Apply to the Registrar of Firms (ROF)
  5. Submit required documents
  6. Receive Certificate of Registration

17. Is it possible to convert an unregistered firm into a registered one?

Yes. You can register the firm at any time by submitting the deed and required documents to the ROF.

18. How long does it take to register a Partnership Firm?

Typically 15–30 days, depending on the state Registrar’s processing time.

19. What is the cost of registering a Partnership Firm?

Costs vary based on:

  • State stamp duty (₹500–₹5000+)
  • Notary charges
  • Registrar filing fee
  • Professional service fee

Total cost differs by state.

Section 4: Taxation, Banking and Compliance

20. Can a Partnership Firm open a Current Account?

Yes. Banks typically require:

  • Partnership Deed
  • Firm’s PAN
  • Registration Certificate (if registered)
  • KYC of partners
  • GST certificate (if applicable)

21. How are taxes filed for a Partnership Firm?

A Partnership Firm files Form ITR-5. Partners file individual returns for their share of profit (tax-exempt) and remuneration received.

22. Does a Partnership Firm need GST registration?

Yes, if:

  • Turnover exceeds the threshold limit
  • Inter-state supply is done
  • Selling on e-commerce
  • Business falls in the mandatory GST category

23. Do partners receive a salary?

Yes, if allowed in the deed. Salary, interest, and remuneration to partners are allowed within Income Tax limits.

24. What are the annual compliance requirements?

  • Income Tax return (ITR-5)
  • GST filings (if applicable)
  • TDS returns (if applicable)
  • Maintenance of books of accounts

Registered firms may have minor additional state requirements.

25. Is an audit mandatory?

Audit is required only if:

  • Turnover exceeds ₹1 crore (business)
  • The Income Tax Act requires it

GST audit is applicable based on turnover thresholds.

26. Do Partnership Firms need a digital signature (DSC)?

Not mandatory unless dealing with:

  • Online GST filings
  • MCA filings (for conversions)
  • Government tenders requiring DSC

Related Read: Partnership Firm Tax Rate and Tax Return Filing explained

Section 5: Operations, Lifecycle and Dissolution 

27. Can a Partnership Firm have branches in multiple states?

Yes, but you may need:

  • Additional Shop & Establishment registrations
  • State-specific trade licenses
  • Branch-wise GST registration (if applicable)

28. Can a partner leave or be removed?

Yes, if permitted in the deed. Exit or removal must be in accordance with the terms of the agreement.

29. What happens to the firm if a partner dies?

Unless stated otherwise in the deed, the firm dissolves. Many deeds include clauses allowing continuation with the remaining partners.

30. Can a Partnership Firm be converted into an LLP or a Private Limited Company?

Yes. A Partnership Firm can be converted into:

Related Read: Difference between a Company and a Partnership

31. Can a Partnership Firm be dissolved?

Yes, through:

  • Mutual consent
  • Expiry of term
  • Completion of the project
  • Death or insolvency of a partner
  • Court order

A dissolution deed is recommended.

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Limited Liability Partnership
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  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
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  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
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1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

Swagatika Mohapatra

Swagatika Mohapatra is a storyteller & content strategist. She currently leads content and community at Razorpay Rize, a founder-first initiative that supports early-stage & growth-stage startups in India across tech, D2C, and global export categories.

Over the last 4+ years, she’s built a stronghold in content strategy, UX writing, and startup storytelling. At Rize, she’s the mind behind everything from founder playbooks and company registration explainers to deep-dive blogs on brand-building, metrics, and product-market fit.

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Related Posts

Copyright Registration Process and Procedure in India

Copyright Registration Process and Procedure in India

Over 37 thousand copyright applications were filed in India in 2024 alone—a sharp rise driven by digital creators, startups, and content-based businesses. As more Indians turn their ideas into income, protecting original work has become more urgent than ever.

But here’s the catch: many creators still don’t realise that copyright registration isn’t automatic or that it plays a crucial role in legal enforcement. Whether you’ve written a book, coded an app, or produced a jingle, this guide will show you how to register your work the right way—and why it’s worth doing before someone else tries to claim it.

Table of Contents

What Is Copyright?

Copyright is a legal right that gives you control over your original creative work—be it writing, music, software, or art. It allows you to reproduce, distribute, and authorise the use of your work. This protection lasts for a limited period, after which the work may enter the public domain.

What Can You Copyright? Understanding the Categories

In India, the Copyright Office recognises six main categories of works that you can protect under copyright law. Each category covers a specific type of creative output and gives you exclusive rights over how that work is used.

Literary Works

This includes books, articles, blogs, software code, and any written content. It protects the expression of ideas, not the ideas themselves.

Dramatic Works

Scripts, screenplays, stage plays, and similar compositions fall under this category. Copyright safeguards the dialogue, structure, and performance elements of the work.

Musical Works

This covers musical notations and compositions, but not the lyrics or sound recordings. It protects the arrangement and melody.

Artistic Works

Paintings, drawings, photographs, sculptures, and even architectural designs qualify here. Copyright ensures your visual creations aren’t copied or used without permission.

Cinematograph Films

This includes movies, videos, and visual recordings. It protects the film as a whole, including its sound and visual elements.

Sound Recordings

These are recordings of voices or music, such as songs, audiobooks, or podcasts. It covers the actual audio content as captured.

The Importance of the Copyright Registration Process

Registering your copyright strengthens your legal ownership and gives you proof in case of disputes. It lets you control how others use, copy, or distribute your work. For example, if someone copies your song or business content without permission, a registered copyright helps you take legal action quickly.

Need for Copyright Registration

While copyright protection exists the moment you create original work, registering it gives you a significant legal edge. In India, registration is not compulsory—but it acts as solid evidence of ownership in court, making it easier to prove your claim if someone uses your work without permission. Whether you're a writer, developer, musician, or business owner, this legal proof can help you enforce your rights and claim damages in case of infringement.

Registration also deters unauthorised use, as it puts others on notice that the work is protected. For creators, it adds a layer of security that encourages more innovation. You’re more likely to invest time and resources into developing original content when you know the law backs your ownership. For businesses, especially those in media, advertising, or tech, copyright registration protects content assets and avoids costly legal battles. It’s a proactive step to secure your creative and commercial interests.

Copyright Symbol

You can start using the copyright symbol (©) as soon as you create original work, but using it after registration strengthens its legal value. It signals that your work is protected and warns others against unauthorised use. The symbol is usually followed by your name and the year of creation.

Element Example
Symbol ©
Name of Owner © Priya Sharma
Year of Creation © 2025 Priya Sharma
Full Notice Example © 2025 Priya Sharma. All rights reserved.

Legal Rights of a Copyright Owner

Once you register your work, you receive a set of legal rights that help you protect and manage your creation. These rights are:

  1. Right of Authorship: You are legally recognised as the original creator of the work.
  2. Right to Reproduce: You alone can make copies of your work in any form—print, digital, or electronic.
  3. Right to Publish and Distribute: You control when, where, and how your work is made available to the public.
  4. Right to Public Performance: If your work is meant to be performed (like music or drama), only you can authorise that.
  5. Right to Translate: You can permit or restrict changes to your work, such as translations, dramatisations, or adaptations into other formats.
  6. Right to Protect Your Reputation: You can object to any use of your work that distorts or damages your name or intent.
  7. Right to Transfer or License: You can sell your rights or give others permission to use your work under specific conditions.

How Long Does Copyright Protection Last?

In India, copyright protection generally lasts for 60 years. For original literary, dramatic, musical, and artistic works, this 60-year period starts from the year following the author’s death. For cinematograph films, sound recordings, photographs, posthumous works, anonymous or pseudonymous publications, and works by the government or international organisations, the 60 years are counted from the year of publication. This extended duration ensures that you—and later your legal heirs or assignees—retain exclusive rights to use and monetise the work, while also allowing time to enforce those rights if needed.

Conditions for Filing a Copyright Application

To submit a copyright application in India, you need to follow specific file format and size rules based on the type of work.

  • Artistic works must be uploaded in PDF or JPG format.
  • Sound recordings should be in MP3 format.
  • Literary, dramatic, musical, and software works must be in PDF format, with the file size under 10 MB.

If you're submitting software, make sure the PDF includes at least the first 10 and last 10 pages of the source code. If the full code is less than 20 pages, you can upload the entire code—but it must be unredacted, with no sections blocked out or hidden.

Step-by-Step Copyright Registration Process

Step 1: Visit the Official Website

Go to copyright.gov.in. If you're a first-time user, click on “New User Registration” to create your login credentials. Keep your user ID and password safe for future use.

Step 2: Fill Form XIV and Upload Documents

After logging in, click on “Click for Online Copyright Registration” and open Form XIV.

Fill in key details such as:

  • Title, nature, and language of the work
  • Applicant’s name, address, nationality, mobile number, and email
  • Whether the work is published or unpublished

Then, upload the required documents:

Also complete the Statement of Particulars and Statement of Further Particulars, based on the type of work.

Step 3: Pay the Registration Fee

Use the online payment gateway to pay the fee. Charges vary:

  • 500 for literary, dramatic, musical, or artistic works
  • ₹2,000 for sound recordings
  • ₹5,000 for software or cinematograph films

Once paid, you’ll receive a Diary Number. This helps track your application status.

Step 4: 30-Day Objection Window

After submission, your application goes public for 30 days to allow objections. If no one raises an objection, it moves forward automatically.

Step 5: Scrutiny and Review

If no objections are raised, the Registrar reviews your application and documents for errors or missing information. If objections are raised, both parties are notified.

Step 6: Hearing (if needed)

A hearing is scheduled. Both sides present their case, and the Registrar makes a decision.

Step 7: Receive the Certificate

If approved, you’ll get a Copyright Registration Certificate. This document legally proves your ownership and is useful in any future disputes.

Note: You must file a separate application for each individual work.

Starting a business? Secure your brand and ideas—get expert help with company and copyright registration with Razorpay Rize.

Checking the Status of Copyright Registration Application

To check the status of your copyright registration application online, visit the official Copyright Office website. Look for the “Status of Application” section on the homepage. You’ll need your diary number or acknowledgment number, which you receive after submitting your application.

Enter this number in the search field and submit it to view the current status. The portal will show if your application is under scrutiny, awaiting response, or approved. 

Distinguishing Copyright, Trademarks, and Patents

Copyright, trademark, and patent are legal tools that protect different kinds of work.

  • Copyright protects original creative content you make—like a story, a song, a painting, or even computer code. It stops others from copying or using your work without permission. Example: You write a short film script—copyright protects the script.
  • Trademark protects your brand identity—like your business name, logo, or tagline. It makes sure no one else uses something similar that could confuse your customers. Example: You design a logo for your film company—trademark protects that logo.
  • Patent protects new inventions—such as machines, products, or special methods. It gives you the right to stop others from making or selling your invention. Example: You invent a new type of camera—a patent protects the invention.

These rights matter because they give you control, stop others from copying your work, and let you take legal action if needed. Understanding what each protects helps you avoid confusion and ensures your ideas are legally safe.

Frequently Asked Questions

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Private Limited Company
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  • Service-based businesses
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Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

What is the procedure for registration of copyright?

To register a copyright in India, visit the official Copyright Office website and fill out the online application. Select the type of work, upload the required documents in the correct format, and pay the prescribed fee. Once submitted, you'll receive a diary number. The application goes through scrutiny, and if there are no objections or errors, the registration certificate is issued.

What documents are required for copyright?

You need a completed application form, copies of the original work in the required format, and a No Objection Certificate (NOC) if the work involves third-party content. For software, include the first 10 and last 10 pages of unredacted source code. 

How long is a copyright registration valid?

The duration depends on the type of work. For literary, artistic, musical, and dramatic works, copyright lasts for the author’s lifetime plus 60 years. For works like films, photographs, and sound recordings, protection lasts for 60 years from the year of publication.

How do you register your story for copyright?

To register a story, choose "Literary Work" as the category in the online copyright application. Upload your story in PDF format (under 10 MB), pay the fee, and submit the form. Keep your diary number for tracking status. Once approved, you’ll receive a copyright registration certificate.

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Sarthak Goyal is a Chartered Accountant with 10+ years of experience in business process consulting, internal audits, risk management, and Virtual CFO services. He cleared his CA at 21, began his career in a PSU, and went on to establish a successful ₹8 Cr+ e-commerce venture.

He has since advised ₹200–1000 Cr+ companies on streamlining operations, setting up audit frameworks, and financial monitoring. A community builder for finance professionals and an amateur writer, Sarthak blends deep finance expertise with an entrepreneurial spirit and a passion for continuous learning.

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 Revised Form URC-1: Company Registration under Section 366 of the Companies Act

Revised Form URC-1: Company Registration under Section 366 of the Companies Act

If you run a business like a partnership firm, LLP, or a registered society and want to turn it into a private or public limited company, you can do so under Section 366 of the Companies Act, 2013. To support such conversions, the Ministry of Corporate Affairs (MCA) notified the Companies (Authorised to Register) Second Amendment Rules, 2018 on 20th September 2018, which became effective from 2nd November 2018.

These rules introduced a revised version of eForm URC-1, a crucial form used to initiate the registration of an existing entity as a company. The form is prescribed under the Companies (Authorised to Register) Rules, 2014, and is directly linked to the provisions of Section 366. The amendment aimed to simplify the conversion process, provide legal clarity, and strengthen regulatory compliance. The following section explains the purpose and significance of filing Form URC-1 in detail.

Table of Contents

Form URC-1

Form URC-1, also known as the "URC 1 form", is an e-form prescribed under Rule 3(2) of the Companies (Authorised to Register) Rules, 2014. It enables various business entities, including partnerships, LLPs, societies, and others, to register as companies under Section 366 of the Companies Act, 2013. The form plays a crucial role in facilitating the formal registration process when an entity decides to transform its business structure into a company.

Filing Form URC-1 is mandatory for entities opting to convert into a company under the provisions of the Companies Act. It captures comprehensive details about the existing entity, the proposed company, and the compliance requirements for a smooth transition. By submitting this form, entities can initiate the company registration process and ensure adherence to the legal framework governing such conversions.

What is Section 366 of the Act?

Section 366 of the Companies Act, 2013 is a pivotal provision that allows various business entities, such as partnerships, LLPs, and societies, to register as companies under the Act. A significant amendment to this section, based on the recommendations of the Company Law Committee, reduced the minimum member requirement from seven to two, making it easier for smaller entities to convert into companies.

The scope of Section 366 has evolved since its introduction in the Companies Act, 1956. The 2017 amendments aimed to widen the eligibility criteria for registration, enabling more businesses to benefit from the advantages of operating as a company. This provision offers a streamlined pathway for entities formed under other laws to transition into the corporate structure governed by the Companies Act.

By registering under Section 366, entities can enjoy benefits such as limited liability protection, better access to capital, and enhanced credibility in the market. The provision creates a bridge between different legal frameworks, allowing businesses to adopt a more formal and regulated structure that aligns with their growth aspirations.

Companies that can be Registered under Section 366

Section 366 of the Companies Act, 2013 allows a wide range of entities to register as companies, including:

These entities must have a minimum of two members to be eligible for registration under Section 366. They can convert into companies limited by shares, guarantee, or as unlimited companies.

It's important to note that Section 366 applies to entities originally formed under laws other than the Companies Act. It provides a pathway for these businesses to transition into the corporate structure and operate under the purview of the Companies Act, 2013.

This provision provides a legal pathway for such organisations to adopt a corporate structure, enabling them to operate under a more regulated framework while enjoying benefits like limited liability, perpetual succession, and enhanced legal status.

Purpose of Form URC-1

The primary purpose of Form URC-1 is to facilitate the registration of certain entities, such as partnerships, LLPs, and societies, as Part I Companies under the Companies Act, 2013. When an entity has seven or more members, Form URC-1 is filed along with Form INC-7 to initiate the company registration process.

Form URC-1 simplifies the online registration procedure by capturing all the necessary details and documents required for the conversion. It serves as a comprehensive application form that enables entities to provide information about their existing structure, proposed company details, and compliance with the legal requirements.

By filing Form URC-1, entities can ensure a smooth transition from their current legal status to a company registered under the Companies Act. The form helps in maintaining transparency and accuracy in the registration process, as it requires the submission of relevant documents and disclosures.

For entrepreneurs and startups, Form URC-1 acts as a practical tool, guiding them through the registration process and helping them understand the documents and disclosures needed for conversion.

Key Amendments and Implications

The Companies (Authorized To Register) Amendment Rules, 2023, introduced several significant changes to Form URC-1. The amended form now requires additional details, including:

Information Category Required Details
Existing and Proposed Entity Name, address, registration number, PAN, etc.
Legal and Financial Disclosures Consent of members, creditors, and debenture holders; assets and liabilities; pending legal proceedings
Resolution and Meeting Specifics Date of resolution, meeting details, approval of conversion
Compliance-related Data Advertisement dates, affidavits, indemnity bonds, NOCs

The amendments aim to strengthen the due diligence process and ensure that all relevant information is disclosed during the registration process. By mandating the submission of these details, the MCA seeks to enhance the integrity and reliability of the information provided by the entities seeking to convert into companies.

The implications of these amendments are significant for entities considering registration under Section 366. They must ensure compliance with the new disclosure requirements and maintain proper documentation to support their application. The increased transparency and disclosures help in preventing any misrepresentation or concealment of material facts during the registration process.

Entities should carefully review the amended Form URC-1 and ensure that they have all the necessary information and documents ready before initiating the filing process.

Attachments to be submitted for Form URC-1

The amended Form URC-1 requires several mandatory attachments to be submitted along with the application. These documents provide supporting evidence and ensure compliance with legal and regulatory requirements. The key attachments include:

  • Particulars of members/partners: A list of all members or partners of the existing entity, along with their details and shareholding pattern.
  • Declaration by directors: A declaration by two or more proposed directors of the company, verifying the particulars of all members/partners.
  • Affidavit for dissolution: An affidavit from all members/partners, confirming the dissolution of the existing entity.
  • Instrument constituting the entity: A copy of the partnership deed, LLP agreement, or other instrument constituting or regulating the existing entity.
  • Certificate of registration: A copy of the certificate of registration of the existing entity, issued by the relevant authority.
  • No Objection Certificates (NOCs): NOC from any sectoral regulators or authorities, if applicable, depending on the nature of the business and the sector in which it operates
  • Newspaper advertisement: A copy of the newspaper advertisement published in a English and a vernacular language newspaper, giving notice of the proposed registration.
  • Compliance certificate: A certificate from a practicing professional (CA/CS/CWA), confirming compliance with the provisions of the Stamp Act, to the extent applicable.
  • Consent of majority members: A resolution passed by a majority of members, agreeing to the registration of the entity as a company.
  • Statement of Accounts: Optionally, a statement of accounts and a valuation report determining the value of assets and liabilities of the existing entity

These attachments provide critical information about the existing entity, its members, and the proposed company. The affidavit from members ensures their consent and commitment to the conversion process. NOCs from regulatory authorities help in identifying any sector-specific compliance requirements or approvals needed for the conversion. The consent and declarations from the first directors establish their eligibility and willingness to take on the responsibilities of directors in the newly registered company. The copies of incorporation documents and constitutional papers provide proof of the existing entity's legal status and governance framework.

Entities should ensure that all the required attachments are duly prepared, signed, and submitted along with Form URC-1. Incomplete or missing attachments may lead to delays or rejection of the registration application. It is advisable to maintain proper records and documentation to support the information provided in the form and the attachments.

Frequently Asked Questions

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Private Limited Company
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1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


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Frequently Asked Questions

What is a company for registration under section 366?

A company for registration under Section 366 refers to an entity, such as a partnership firm, LLP, or society, that seeks to convert and register itself as a company under the Companies Act, 2013. This provision allows these entities to transition into the corporate structure and be governed by the regulations and compliance requirements specified in the Act.

What is Form 1 of the Companies Act?

Form 1 of the Companies Act, also known as Form INC-1, is an application form used for reserving a name for a proposed company. It is the first step in the company incorporation process, where the promoters or applicants propose a name for the company and seek approval from the Registrar of Companies (ROC) before proceeding with the incorporation formalities.

What are the Authorised to register rules for companies?

The Authorised to Register Rules for companies are a set of rules prescribed under the Companies Act, 2013, which govern the registration of entities as companies under Section 366. These rules provide the eligibility criteria, procedures, and requirements for entities seeking to convert into companies. The rules specify the forms to be filed, attachments to be submitted, and the overall process to be followed for a successful registration under Section 366.

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Requirements to Obtain the Shop and Establishment Act Registration

Requirements to Obtain the Shop and Establishment Act Registration

The Shop and Establishment Act is a vital piece of legislation that governs the working conditions and employment terms in shops, commercial establishments, and other non-manufacturing businesses across India. As an entrepreneur or business owner, it's essential to understand the registration process and ensure compliance with the provisions of this Act, which are enforced by the respective State Labour Departments.

Obtaining the Shop and Establishment License is a mandatory requirement for most businesses operating in India. Whether you're setting up a retail store, restaurant, office, theatre, or even an online business, you'll need to register under the Shop and Establishment Act to legally operate in your state.

Table of Contents

The Shop and Establishment Act

The Shop and Establishment Act is a state-specific legislation aimed at regulating and standardising the working conditions in shops, commercial establishments, hotels, restaurants, and other service-oriented businesses. The primary objective of this Act is to ensure fair and humane treatment of workers by stipulating guidelines for:

  • Work hours and overtime
  • Minimum wages
  • Leave and holiday policies
  • Employee welfare and benefits

Since each state has its own version of the Act, the specific rules and regulations may vary depending on where your business is located. However, the core principles of employee protection and standardised work conditions remain consistent across all states.

Registration Under The Shop and Establishment Act

For most businesses in India, registration under the Shop and Establishment Act is mandatory. Any shop, commercial establishment, or service-based enterprise—whether physical, online, or home-based—must obtain this license within 30 days of starting operations, as per state-specific regulations.

The registration process involves submitting an application to the Chief Inspector or Labour Commissioner of your area, along with the required documents and fees. Upon verification and approval, you'll receive a Shop and Establishment License, which serves as proof of your legal compliance and is essential for:

  • Opening business bank accounts
  • Applying for loans and financial assistance
  • Availing government schemes and benefits

Failing to obtain the necessary registration can result in penalties, fines, and legal consequences, so it's crucial to prioritise this process as you set up your business.

Setting up your business? Get expert help with Shop and Establishment Registration and Company Registration today.

Regulations Under The Shop and Establishment Act

To ensure fair and safe working conditions for employees, the Shop and Establishment Act lays down several regulations that employers must adhere to. Some of the key areas covered under the Act include:

  1. Work Hours and Overtime:
    • Standard work hours for adults are typically limited to 8-9 hours per day and 48 hours per week.
    • Overtime wages, usually double the regular rate, must be paid for work beyond the standard hours.
    • Employees are entitled to a weekly off of at least 24 consecutive hours.
  2. Wages:
    • Employers must pay wages on time, typically by the 7th or 10th of the following month, depending on employee count.
    • Men and women must receive equal remuneration for the same work, as per the Equal Remuneration Act, 1976.
  3. Leave and Holidays:
    • Workers are entitled to various types of leave, such as earned leave, casual leave, and sick leave.
    • The number of leave days and paid holidays varies by state.
  4. Employee Welfare:
    • Employers must provide basic amenities such as drinking water, clean toilets, first-aid kits, and a crèche (if employing more than 50 women).
    • The workplace should be well-ventilated, adequately lit, and maintained at a comfortable temperature.
  5. Record-Keeping:
    • Businesses must maintain proper records of work hours, leave, overtime, wages, and other employee-related data.
    • Wage slips must be provided to employees every month, detailing their earnings and deductions.
  6. Display of Notices and Registers:
    • The Shop and Establishment Registration certificate and an abstract of the Act must be prominently displayed in the local language.
    • Employers must maintain registers such as appointment letters, service books, leave records, and wage registers.

By adhering to these regulations, businesses can create a safe, fair, and compliant work environment for their employees.

Eligible Businesses under the Shops and Establishments Act

The Shops and Establishments Act applies to a wide range of businesses, including but not limited to:

  • Shops and retail establishments
  • Commercial offices (e.g. legal, accounting, consulting)
  • Service providers (e.g. IT firms, salons, courier services)
  • Hotels, restaurants, and eateries
  • Educational institutions and training centres (e.g. coaching centres, training institutes)
  • Healthcare facilities and clinics (e.g. clinics, diagnostic centres)
  • Entertainment and recreational centres (e.g. theatres, gyms, amusement parks)

However, the specific applicability may vary from state to state. For example, some states require registration for establishments with a minimum of 10 employees, while others have a lower threshold. Manufacturing units and factories are generally not covered under this Act, as they are governed by the Factories Act.

To ensure compliance, it's essential to verify your business's eligibility with your local state authority and adhere to the specific requirements laid down by your state's Shop and Establishment Act.

Requirements to obtain the Shop and Establishment Act Registration

To obtain the Shop and Establishment Act Registration, you'll need to apply along with the following documents and details:

  1. Business Information:
    • Name and address of the establishment
    • Nature of business activity
    • Number of employees
    • Working hours and shifts
  2. Proof of Identity and Address:
    • Owner's identity proof (Aadhaar card, PAN card, etc.)
    • Proof of business address (rental agreement, property deed, etc.)
  3. Other Documents:
    • Partnership deed or incorporation certificate (for partnership firms and companies)
    • Layout plan of the establishment
    • List of employees with their details
    • Consent letter from the property owner (if operating from rented premises)
  4. Registration Form:
    • Duly filled and signed application form, which can be obtained from the local labour department or downloaded from their website.
  5. Fees:
    • Registration fees vary by state and are typically based on the number of employees and the nature of the business.

Some states may have additional requirements, so it's essential to check with your local labour department for the exact list of documents and procedures specific to your state.

Process For Obtaining Shop and Establishment Registration

The process for obtaining the Shop and Establishment Registration may vary slightly from state to state, but the general steps involved are as follows:

  1. Visit the website of your state's labour department or the online portal for Shop and Establishment Act Registration.
  2. Fill out the online application form with the required details, such as:
    • Employer name and contact information
    • Establishment name and address
    • Nature of business
    • Number of employees
    • Working hours and shifts
  3. Upload the necessary documents, as mentioned in the previous section, in the prescribed format (usually PDF or JPEG).
  4. Pay the registration fees online using a credit card, debit card, or net banking.
  5. Submit the application and wait for the labour department to verify your documents and details.
  6. Upon successful verification, you will receive the Shop and Establishment Registration certificate, either electronically or by post.

Alternatively, you can also opt for the offline process by visiting the local labour department office, submitting the physical application form, and paying the fees in person. However, the online process is generally faster and more convenient.

Once you obtain the registration certificate, make sure to display it prominently at your establishment and renew it before the expiry date to maintain compliance with the Act.

Validity of Shop And Establishment Registration

The validity of the shop and establishment license varies from state to state. Some states provide a lifetime registration, while others require periodic renewal. The renewal period can range from 1 to 5 years, depending on the state. Some states, like Maharashtra and Delhi, offer long-term or lifetime validity—up to 10 years or even 21 years—while others such as Karnataka, Tamil Nadu, and Uttar Pradesh require periodic renewal every 3 to 5 years. The registration fees also differ and are typically calculated based on the number of employees, the nature of the business, and the duration of registration selected.

It's crucial to keep track of your registration's validity and initiate the renewal process well before the expiry date to avoid any lapses in compliance. Renewal fees and procedures may also differ by state, so make sure to check with your local labour department for the most up-to-date information.

Conclusion

Registering under the Shop and Establishment Act is a vital step for any business operating in India’s commercial sector. It not only ensures legal compliance but also promotes transparent and fair employment practices. By understanding your state’s specific rules, maintaining accurate records, and renewing your registration on time, you can protect your business and your employees.

Compliance isn't just a legal formality—it's a foundation for sustainable growth and a responsible workplace.

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  • Professional services 
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Frequently Asked Questions

What documents are required for shop and establishment registration in UP?

  1. To register your shop or establishment in Uttar Pradesh, you'll need to submit the following documents:
    • Duly filled application form
      (Available online through the UP Labour Department portal)
    • Proof of business address
    • Identity proof of the owner(s)
    • List of employees
    • Layout plan of the establishment
    • Partnership deed or incorporation certificate (if applicable)
    • Consent letter from the property owner (if operating from a rented premises)

What are the documents required for shop and establishment registration in Maharashtra?

  1. In Maharashtra, you'll need to submit the following documents for Shop and Establishment Registration:
    • Completed application form
    • Proof of business address
    • Identity proof of the owner(s)
    • Partnership deed or incorporation certificate (if applicable)
    • List of employees
    • Layout plan of the establishment
    • Fees as prescribed by the state

How do I get permission to open a shop?

  1. To obtain permission to open a shop, you'll need to follow these steps:
    • Register your business under the Shop and Establishment Act by submitting the required documents and fees.
    • Obtain any additional licenses or permits specific to your business.
    • Ensure compliance with local zoning regulations and building codes.
    • Apply for a GST registration if your annual turnover exceeds the prescribed threshold.
    • Open a business bank account and maintain proper financial records.

Akash Goel

Akash Goel is an experienced Company Secretary specializing in startup compliance and advisory across India. He has worked with numerous early and growth-stage startups, supporting them through critical funding rounds involving top VCs like Matrix Partners, India Quotient, Shunwei, KStart, VH Capital, SAIF Partners, and Pravega Ventures.

His expertise spans Secretarial compliance, IPR, FEMA, valuation, and due diligence, helping founders understand how startups operate and the complexities of legal regulations.

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Basanth Verma
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We would recommend Razorpay Rize incorporation services to any founder without a second doubt. The process was beyond efficient and show's razorpay founder's commitment and vision to truly help entrepreneur's and early stage startups to get them incorporated with ease. If you wanna get incorporated, pick them. Thanks for the help Razorpay.

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