Question

If registration is optional, why do partnership firms willingly go through this legal formality and get themselves registered? Explain.

Answer 1

Partnership firm get them themselve register to get maximum benefits nd to avoid the future problems. And by getting register they can file a case against illegal.

Answer 2

The registration of firms are necessary for the registering the name of the firm with the registrar of firms which gives it the legality needed for operating the business.  The process of registering helps the firms from future disputes

Explanation:

• When the firm gets registered formally with the registrar of firms it gives the partnership a legality with the partnership firm and protects the rights of the partners involved in the partnership. If the firms do not legalize the partnership then it can lead to misunderstandings in the future and there can be no cases filed against any partner since it the partnership firm was not legally recognized. There are many problems that can come up if a firm is not registered as a partnership firm.
• The firms that are legally registered do not have any form of misunderstandings or confusion between the partners. If there is any conflict that comes up between them then either of the partners can file a case against the parties involved. The partners of the firm are protected by the law and it becomes easy to conduct business because of legality of the firm. The partnership firm is easy to form and has more resources available with the partnership. The profits and risks are shared between the partners as decided by the legal procedures.

To know more about partnership firms

What is a partnership firm ? State the advantages and disadvantages of a partnership firm

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