How to Register Partnership Firms under MSME category. Is it mandatory to Register

How to Register Partnership Firms under MSME category. Is it mandatory to Register

Registering an MSME (Micro, Small, and Medium Enterprise) partnership firm in India involves several steps. Here's a step-by-step guide:

1: Choose a Unique Name for the Firm

Select a distinct name that is not already registered by another firm.
Ensure it does not violate any trademarks.

Step 2: Create a Partnership Deed

The partnership deed is a legal document defining the roles, responsibilities, profit-sharing ratio, and other terms among partners.
It should include:
- Firm name and business details
- Partner names and contributions
- Profit/loss sharing ratio
- Rules for admission/retirement of partners
- Other necessary clauses
Get the partnership deed notarized on stamp paper (stamp duty varies by state).

Step 3: Apply for MSME Registration

Visit the Udyam Registration portal: https://udyamregistration.gov.in
Provide Aadhaar details of one partner (linked to the firm).
Enter business details, bank account, PAN, and other necessary information.
Submit the application and receive the Udyam Registration Certificate.

Note: MSME registration is not mandatory but provides benefits like loan subsidies, lower interest rates, and tax benefits.

Step 4: Register the Partnership Firm (Optional but Recommended)

Partnership firms can be registered under the Indian Partnership Act, 1932.
Visit the Registrar of Firms (RoF) in your state.
Submit the application form along with the partnership deed.
Pay the prescribed fee.
Upon verification, the Certificate of Registration will be issued.

Step 5: Obtain PAN & TAN for the Firm

Apply for a PAN (Permanent Account Number) for the firm through the NSDL website.
If required, apply for TAN (Tax Deduction and Collection Account Number).

Step 6: Open a Current Bank Account

Use the PAN and registration certificate (if applicable) to open a current bank account in the firm’s name.

Step 7: Register for GST (If Required)

If turnover exceeds ₹40 lakh (₹20 lakh for service businesses) or interstate business is involved, GST registration is necessary.
Register on the GST portal: https://www.gst.gov.in.

Step 8: Additional Licenses (If Required)

Depending on the type of business, additional licenses may be required (e.g., FSSAI for food businesses, Shop and Establishment Act registration, etc.).

Benefits of MSME Registration for Partnership Firms

✅ Priority sector lending
✅ Lower bank interest rates
✅ Government subsidies & incentives
✅ Tax exemptions & credit facilities
✅ Protection against delayed payments

Blog Posts