Converting a proprietorship into a partnership allows the business owner to collaborate with one or more partners, share responsibilities, and pool resources for business growth. The process begins with selecting suitable partners and mutually agreeing on the terms of the partnership, including profit-sharing ratio, capital contribution, management roles, and business objectives. A partnership deed is then drafted outlining these terms along with clauses for dispute resolution, admission/retirement of partners, and dissolution procedures. The partnership deed should be signed by all partners, and although registration is optional under the Indian Partnership Act, 1932, registering the partnership firm with the Registrar of Firms provides legal recognition and enforceability of rights. Professional assistance is recommended to ensure the deed accurately reflects the partners’ agreements, complies with statutory requirements, and protects the interests of all parties. Converting to a partnership provides the business with additional capital, shared expertise, and a collaborative structure while maintaining operational flexibility. Proper documentation and compliance help safeguard partner rights, maintain legal recognition, and support smooth business operations.