2025 Complete Guide How to Register Partnership Firm What is Partnership? A partnership is a formal contract between two or more persons who have agreed to share the profit of a business among all partners as per the Partner share in percentage. Persons who have entered into partnership or AOP (also called Association of Persons) are called individually” partners” and collectively a “firm” and the name of their business is called the “Name of Firm”.
Firms can be formed either for a specific time period or at will.
Particular Partnership (Specific Time Period):
If a business is established for a specific purpose or period, an agreement can be made for it, which is called a “Particular Partnership.” This partnership automatically terminates when the business activities ends or the date specified in the agreement.
At Will:
Where the duration of the partnership is not fixed among the partners, such a Business association is called “Partnership at will”. This means that any partner can dissolve the firm at any time by giving a short notice. The firm is deemed to be dissolved on the date given in the notice.
Such an association continues for an indefinite period as there is no express mention of its duration in the agreement.
Death of a Partner:
- If a partner dies, the firm is usually automatically dissolved, unless the partnership deed expressly states that the firm will be continue in existence on the death of the partner.
- In such a case, the legal heir of the deceased partner can automatically become the new partner and the business continues as usual.
- This clause must be included in the agreement signed by the partners. If no such provision exists, the firm will be dissolved on the death of the partner.
- However, later, the heirs of the deceased partner and the remaining partners can, by mutual consent, prepare a new partnership agreement (deed) and update it in the records of the Registrar.
2025 Complete Guide How to Register Partnership Firm: Registered and Un-Registered Firm
An unregistered firm refers to a partnership in which the partners only sign a “Partnership Deed”, but do not formally register the firm with any government department, only an NTN is obtained. Some businessmen believe that this is enough. This is true to some extent because only a “Partnership Deed” is required for opening a bank account or registering with the FBR, however, the formal registration is considered complete only when a certificate of registration (Form “H” or “C”) is obtained by making a formal application to the Registrar’s office.
Is it compulsory to register a partnership?
No, registration is optional it is not compulsory but there are some disadvantages for not-registering.
2025 Complete Guide How to Register Partnership Firm: Effect of Non-Registration of the Firm
- In case of any dispute arises among the existing or ex-partners, no case can be filed by in any court of law against the un-registered AOP to enforce any right arising from any contract.
- Similarly, an unregistered AOP cannot file a case against a third party for enforcement of any legal right arising from a contract, e.g. for the recovery of the refund of damaged goods supplied. However, a third party may file suit against an unregistered partnership.
Disadvantages for the Partner’s:
- A partner of an unregistered firm cannot claim against other partners that he has been wrongfully expelled from the firm.
- A partner of an unregistered firm also does not have the right to set-off in any suit filed against the firm.
- Even in such a case, the partners cannot claim any of their outstanding amounts in court.
2025 Complete Guide How to Register Partnership Firm All Over Pakistan:
- The process of registering a partnership firm is almost the same across Pakistan, however, there are differences in the fees and forms used in different provinces.
- Form-I is used in Punjab, while Form-A is used in Baluchistan, Khyber Pakhtunkhwa (KPK) and Sindh.
- This form is submitted to the office of the District Registrar of Firms located at the place where the business address of the firm is located.
- The application must be signed by all the partners. Furthermore, Form-I/A must be attested by a Notary Public.
Required documents to be attached
- Partnership deed written / printed in English must be signed by all the partners in presence of two witness and duly attested by Notary Public and a copy thereof re-attested.
- Photo copies of Computerized National Identity Cards of all partners and witnesses.
- Attested copy of Notary Public license.
- Paid Challan of registration fee. The fee can be deposited under the Head Account: “CO3545-Registration of Firms & Societies (Provincial)”
- Affidavit from the applicant that none of the partner has register with the same name of Firm.
- Physical appearance of partners before Registrar of Firms & Societies is also required if the firm is to be register in KPK
Registration Fee & Stamp Paper Value
Stamp paper and registration fees are separate, to be paid according to the rates set by each province, as explained below.
| Province | Registration Fee | Stamp Paper Value on Which Partnership Agreement is Written |
| Punjab | 2,000 | 1,000 |
| Sindh | 1,000 | 2,000 |
| Khyber Pakhtunkhwa | 5,000 | 375 |
| Baluchistan | 2,000 | 1,000 |
The Partnership registration can be done either manually or online.
Manual Process:
Fill in Form A/1 and submit it to the office of the Registrar of Firms (Assistant Registrar Cooperative Societies). The Registrar’s office is usually located in each district or capital of the province, for example, in Khyber Pakhtunkhwa, the main office is located at Khyber Bazar Road, Shoba, Peshawar.
Online Process:
- There is a facility for online filing of the application form, but the process is not completely online. The applicant first has to fill the online form, after which he receives a call for appointment, and then hard copies of all the documents have to be submitted to the relevant office.
- For business registration, be sure to visit the official website of the province.
- Sign up by entering your CNIC, mobile number, email address, and other details. Upload scanned copies of all required documents and submit the application online.
- After submission, all partners must appear in person before the Registrar for verification (KPK Only)
- Once verified, the Registrar will issue the Certificate of Registration (Form-H or C) to the applicant.
2025 Complete Guide How to Register Partnership Firm: Key Points
A partnership is an agreement between two or more persons to mutually share the profits of a business. It can be registered (recommended) or unregistered (optional). It can exist for a fixed period or indefinitely. In the event of the death of a partner, the firm is either dissolved or continues with the legal heirs of the deceased.
After submission of Form A/I, payment of fees and partnership deed, a registration certificate is issued and the firm is officially registered.
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