REGISTRATION OF FIRM:
Registration of a partnership firm in India is not compulsory.
It is only optional. Indian Partnership Act, 1932, provides that if
the partners so desire, they may register their firms with the registrar
of firms of the state. The procedure for registration is explained
below.
1. Procedure for Registration
A partnership firm can be registered at any time by filing a
statement in the prescribed form. The form should be duly signed
by all the partners. It should be sent to the registrar of firms along with
the prescribed fee. The statement should contain the following particulars.
1. Name of the firm
2. Principal place of its business
3. Name and address of each partner
4. Date of admission of each partner
5. Date of commencement of business of the firm
6. Duration of the firm
On receipt of the statement and the fees, the registrar makes
an entry in the register of firms. A certificate is issued by the registrar
which is known as Certificate of Registration. The firm is considered
to be registered when the entry is made. Any change in the above
particulars must be communicated to the registrar of firms within a
reasonable period of time so that necessary alteration may be made
in the register of firms. This register is open for inspection on
payment of a nominal fee.
2 Effect of Non-Registration
Registration of partnership is only optional in India. But if
a firm is not registered, it has to face the following drawbacks.
1. A partner of an unregistered firm cannot file any case against the
firm or against any other partner, including an ex-partner for
enforcing his contractual rights under the partnership agreement or
under the Act.
2. An un-registered firm cannot file any suit against third parties in
any civil court for recovering the money due.
3. Any third party can take legal action against the business or the
partners
4. The firm cannot take legal action against its partners.
5. An unregistered firm cannot enforce its claims against third parties for
recovering a sum exceeding rupees one hundred.
6. A partner cannot sue for dissolving the firm or realising the
property of the dissolved firm or for the settlement of accounts on
dissolution.
7. The firm forfeits its rights in restricting the outsiders from using
the trademarks and copyrights of the firm
Registration of a partnership firm in India is not compulsory.
It is only optional. Indian Partnership Act, 1932, provides that if
the partners so desire, they may register their firms with the registrar
of firms of the state. The procedure for registration is explained
below.
1. Procedure for Registration
A partnership firm can be registered at any time by filing a
statement in the prescribed form. The form should be duly signed
by all the partners. It should be sent to the registrar of firms along with
the prescribed fee. The statement should contain the following particulars.
1. Name of the firm
2. Principal place of its business
3. Name and address of each partner
4. Date of admission of each partner
5. Date of commencement of business of the firm
6. Duration of the firm
On receipt of the statement and the fees, the registrar makes
an entry in the register of firms. A certificate is issued by the registrar
which is known as Certificate of Registration. The firm is considered
to be registered when the entry is made. Any change in the above
particulars must be communicated to the registrar of firms within a
reasonable period of time so that necessary alteration may be made
in the register of firms. This register is open for inspection on
payment of a nominal fee.
2 Effect of Non-Registration
Registration of partnership is only optional in India. But if
a firm is not registered, it has to face the following drawbacks.
1. A partner of an unregistered firm cannot file any case against the
firm or against any other partner, including an ex-partner for
enforcing his contractual rights under the partnership agreement or
under the Act.
2. An un-registered firm cannot file any suit against third parties in
any civil court for recovering the money due.
3. Any third party can take legal action against the business or the
partners
4. The firm cannot take legal action against its partners.
5. An unregistered firm cannot enforce its claims against third parties for
recovering a sum exceeding rupees one hundred.
6. A partner cannot sue for dissolving the firm or realising the
property of the dissolved firm or for the settlement of accounts on
dissolution.
7. The firm forfeits its rights in restricting the outsiders from using
the trademarks and copyrights of the firm
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