Partnership

It is not mandatory to register the partnership. It is the sole choice of the partners and business owners. The firm can be registered any time after it is formed. The only drawback of the unregistered firm is that it does enjoy the benefits and rights under Section 69 of the Partnership Act as mentioned below

• Partner will not be able to sue other partners or firm in the courts

• The firm will not be able to sue its partners or third parties in the courts.

However, it is always recommended to register the firm sooner or later to legalize it and enjoy the various rights so offered.

Late registration: If the statement in respect of any firm is not sent or delivered to the Registrar within the period of one year from the date of constitution of the firm, then the firm may be registered on payment, to the Registrar, of a penalty of Rs 100/- per year of delay or a part thereof.

If the Partnership firm is registered, the Partnership deed will be registered and a Registration Certificate will be issued by the Registrar of Firms.