Stamp Duty and Notary Charges for Partnership Deeds in India

 When starting a partnership business in India, one of the first legal steps is drafting and registering a partnership deed. This deed outlines the roles, responsibilities, and profit-sharing ratios among the partners. However, many new business owners are unsure about the associated partnership deed charges, including stamp duty and notary fees. In this blog, we’ll simplify these charges so you can plan your business finances wisely.

partnership deed charges


What is a Partnership Deed?

A partnership deed is a legal document that governs the relationship among partners. It includes vital information such as:

  • Names and addresses of all partners

  • Nature of the business

  • Profit and loss sharing ratio

  • Capital contribution of each partner

  • Rules regarding admission, retirement, and dispute resolution

While drafting the deed is essential, getting it stamped and notarized gives it legal weight and can protect you in case of future conflicts.

Stamp Duty on Partnership Deed in India

Stamp duty is a form of tax imposed by the government on legal documents. It varies from state to state in India. The stamp duty for a partnership deed typically depends on:

  • The capital invested in the firm

  • The location (state) of registration

  • Whether the partnership is registered or unregistered

Sample Stamp Duty Charges by State:

  • Delhi: ₹200

  • Maharashtra: ₹500 (for capital up to ₹50,000) and increases with capital

  • Karnataka: ₹500 to ₹1,000 based on capital

  • Tamil Nadu: ₹500

These charges are subject to change, so it's best to check the latest rates from the local registrar’s office or consult the best CA firm near you for accurate guidance.

Notary Charges for Partnership Deed

After stamping the deed, it should be notarized to validate the signatures of the partners. Notary charges are much lower compared to stamp duty and generally range from ₹100 to ₹500 depending on the city and the notary.

Notarization ensures that the deed is recognized as a legitimate document in court and by banks, government bodies, or tax authorities.

Is It Mandatory to Register a Partnership Deed?

While registration of a partnership deed is not mandatory under the Indian Partnership Act, 1932, it is highly advisable. Registered firms can sue and be sued in a court of law, whereas unregistered firms cannot enforce rights against third parties.

Registration involves additional charges such as:

  • Government registration fee (around ₹1,000 depending on the state)

  • Professional service charges if you're hiring a CA firm

How the Best CA Firm Can Help You

If you're not familiar with the legal process or want to avoid errors, hiring the best CA firm in your city can simplify the process. From drafting the partnership deed to calculating exact partnership deed charges, stamp duty, and notary fees—they handle everything professionally.

Moreover, they ensure timely registration, compliance with tax laws, and can even assist in converting your partnership into an LLP or private limited company in the future.

Final Thoughts

Understanding stamp duty and notary charges for partnership deeds in India is crucial when starting a business. While the initial expense might seem minor, doing it right can save you from legal troubles down the line. Always check state-specific rates and consult a reliable CA for accurate cost estimates.

If you're looking for a hassle-free experience, get in touch with the best CA firm near you and ensure your partnership starts on a strong legal foundation.

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