How to register a partnership firm in Pakistan

A partnership firm is one of the most commonly adopted forms of business in Pakistan, especially for small and medium-sized enterprises (SMEs). It involves two or more individuals (or entities) coming together to share profits, losses, responsibilities, and resources in a mutually agreed business venture. The structure is governed by the Partnership Act, 1932 and requires registration with the Registrar of Firms of the respective provincial government.

Registering a partnership firm not only provides legal recognition but also builds credibility with banks, clients, and government departments. This article provides a complete guide to the process, documents required, benefits, and compliance requirements of registering a partnership firm in Pakistan.

What Is a Partnership Firm?

A partnership is a contractual agreement between two or more persons who agree to conduct a lawful business together and share its profits or losses as per mutually decided terms. The agreement is formalized through a Partnership Deed, which outlines the rights, duties, and obligations of each partner.

A partnership firm in Pakistan does not have a separate legal identity from its partners and is subject to unlimited liability unless registered as a Limited Liability Partnership (LLP) under SECP.

Legal Framework

• Governed by the Partnership Act, 1932

• Registration handled by Registrar of Firms in each province

• Optional but strongly recommended to register the firm to enjoy legal benefits

Benefits of Registering a Partnership Firm

• Legal recognition of the business

• Right to file lawsuits against third parties

• Eligibility for contracts, tenders, and loans

• Proof of existence for bank account and NTN

• Prevents disputes with third parties and among partners

Types of Partnership Structures

• Registered Partnership: Legally recognized by the Registrar of Firms, enjoys enforceability in courts

• Unregistered Partnership: Operates informally and cannot sue or be sued in a court of law under the Partnership Act

Who Can Form a Partnership?

• Any two or more persons (maximum of 20 in case of general partnership)

• Individuals, companies, or other registered businesses

• Foreign individuals (with legal permission)

Step-by-Step Guide to Register a Partnership Firm in Pakistan

Step 1: Draft the Partnership Deed

A Partnership Deed is a written agreement signed by all partners detailing the terms and conditions of the partnership.

Key Clauses in the Deed:

• Name and address of the firm

• Names and addresses of all partners

• Capital contribution by each partner

• Profit-sharing ratio

• Roles and responsibilities

• Rules for admission, retirement, and expulsion of partners

• Bank operation authority

• Method of dispute resolution

• Duration of the partnership (fixed or at-will)

Stamp Duty must be paid based on the capital investment, as per provincial stamp laws.

Step 2: Notarize the Partnership Deed

The Partnership Deed must be printed on non-judicial stamp paper (usually ranging from PKR 1,000 to PKR 5,000) and notarized by a Notary Public.

Step 3: Prepare Registration Application (Form I)

Submit an application to the Registrar of Firms using Form-I, which includes:

• Firm name

• Business address

• Names of partners

• Duration of firm

• Nature of business

Form I must be signed by all partners in the presence of a magistrate or an authorized officer.

Step 4: Submit Documents to Registrar of Firms

The following documents must be submitted to the Registrar of Firms of the respective provincial government:

Required Documents:

• Form-I (Application for registration)

• Original Partnership Deed

• Attested copies of CNICs of all partners

• Affidavit on Stamp Paper by all partners

• Proof of Business Address (utility bill or rent agreement)

• Witness signatures on deed and form

• Recent photographs of all partners

• Registration Fee Challan (varies by province)

Note: In Punjab, Sindh, KP, and Balochistan, the process and documentation are similar but submitted to their respective Registrar of Firms offices.

Step 5: Verification and Issuance of Registration Certificate

The Registrar reviews the application. If all documents are in order:

• The firm is entered into the Register of Firms

• A Certificate of Registration is issued

• A firm registration number is assigned

Timeline: Usually within 7–10 working days

Post-Registration Requirements

1. Apply for NTN with FBR

After receiving the Certificate of Registration, the partnership must obtain an NTN (National Tax Number) from FBR.

Documents Required for NTN:

• CNICs of all partners

• Partnership deed and certificate

• Business address proof

• Utility bill

• Bank account details

• Business letterhead

Apply through the FBR IRIS portal at https://iris.fbr.gov.pk

2. Open a Bank Account

To open a business bank account, submit:

• NTN certificate

• Partnership deed

• Certificate of Registration

• CNICs of partners

• Bank account opening letter on letterhead

• Partnership letterhead and stamps

3. Register for Sales Tax (If applicable)

If your firm deals in taxable goods or services, sales tax registration is mandatory.

Apply through IRIS or relevant provincial authorities like:

• PRA (Punjab)

• SRB (Sindh)

• KPRA (Khyber Pakhtunkhwa)

• BRA (Balochistan)

Timeline and Cost Estimate

Legal Validity and Rights of Registered Firms

A registered partnership firm enjoys the following legal rights:

• Can file lawsuits in court for disputes

• Eligible to apply for tenders and government contracts

• Can apply for trade, tax, and chamber registrations

• Enjoys stronger banking and business credibility

Differences Between Registered and Unregistered Firms

FAQs on Partnership Registration in Pakistan

Can foreign nationals be partners in a Pakistani firm?

Yes, but they must comply with visa, tax, and BOI (Board of Investment) requirements.

Is it mandatory to register a partnership?

No, but registration is highly recommended to ensure legal enforceability and credibility.

How many partners can a firm have?

A general partnership can have up to 20 partners. For professional firms (e.g., accounting firms), specific rules may apply.

Can a partner be a minor?

No, all partners must be at least 18 years old and legally competent to enter contracts.

What happens if a partner dies or leaves?

The partnership deed should define the procedure. If not, the firm may dissolve unless agreed otherwise.

Why Choose Sterling.pk for Partnership Registration?

At Sterling.pk, we offer comprehensive support for partnership firm registration across Pakistan, including:

• Legal drafting of the Partnership Deed

• Assistance with notarization and stamp paper

• Preparation and submission of Form I

• Registrar office follow-up and registration

• NTN registration and tax filing

• Bank account opening advisory

We ensure a smooth, legally compliant, and efficient process so you can focus on running your business.

Conclusion

Registering a partnership firm in Pakistan is a relatively simple yet essential step toward formalizing your business. It adds legal recognition, improves credibility, and allows better access to banking, taxation, and commercial opportunities. Whether you’re launching a small trading venture, professional consultancy, or service-based business, choosing the partnership model — and registering it — is a solid foundation for future growth.

With expert assistance from Sterling.pk, you can register your partnership quickly, correctly, and cost-effectively while ensuring full compliance with provincial and federal laws.