Registration of partnership firm

Sir when a partnership firm is deemed to be registered ?

asked Jun 12, 2016 in Partnership-Fundamentals by Sankari Dkshith B (99 points) 140 views

1 Answer

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Partnership firms in India are governed by the Indian Partnership Act, 1932. While it is not compulsory to register partnership firm, it is advisable since the following rights are denied to an unregistered firm:

1,   A partner cannot file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act.

2    A right arising from a contract cannot be enforced in any Court by or on behalf of the firm against any third party

3    The firm or any of its partners cannot claim mutual adjustment of debts with the disputant parties or other proceedings in a dispute with a third party.

      A partnership firm may get itself registered at the time of its formation or even later. For this purpose it needs to file an application along with some documents with the Registrar of Firms of the area in which its business is located.

                  On verifying the application, if the Registrar of Firm is satisfied as to the compliance of the application procedure, he will record an entry of the statement in the Register of Firms and a Certificate of Registration will be issued.  After this the firm shall be deemed to be registered.
answered Jun 13, 2016 by jbsclasses (3,971 points)