Registration

Meaning: Registration of a partnership firm means entering the firm's name, along with the prescribed particulars, in the Register of Firms kept by the Registrar of Firms. It provides conclusive proof of the firm's existence.

Registration is optional for a partnership firm, but a firm that does not register loses several benefits.

Consequences of non-registration

• A partner of an unregistered firm cannot file a suit against the firm or the other partners.
• The firm cannot file a suit against third parties.
• The firm cannot file a case against its own partners.

Because of these drawbacks, it is advisable to register the firm.

Procedure for registration

Under the Indian Partnership Act, 1932, partners may register the firm with the Registrar of Firms of the state in which the firm is situated — either at the time of formation or at any time during its existence. The steps are: …