TWO TYPES OF PARTNERSHIP FIRM REGISTRATION:
Indian Partnership Act, 1932 governs partnership firms in India. A Copy of the Partnership Deed should also file with the Registrar of Firms in case, and the firm is registered. The Registration of firm is not compulsory under Part VII of the Indian Partnership Act, 1932, though it has done as registration brings many advantages to the firm.
- No suits to enforce a right arising from a contract shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the firm.
- A partner of an unregistered firm cannot file a suit in any court against the firm, or other partners for the enforcement of any right arising from a contract, or Partnership Act confers rights.
- An unregistered firm or any of its partners cannot claim a set off (i.e. mutual adjustment of debts owned by the disputant parties to one another) or other proceedings in a dispute with a third party.
Hence, it is always advisable to get itself registered sooner or later.
- Choose a Name for the Business
- Check the availability
- Register the Firm
- Be registered for tax
- Create a Partnership Agreement