It is optional for a partnership firm to get registered.
Answers
Answer:
Registration of partnership is not mandatory in India. However, it is highly recommended for the partners to obtain this registration in order to provide the legality to their business structure.
The partners can sue the partners and the third parties. The partners can sue the partnership. There are various other advantages as well like:-
1)Ease of formation and closure
2) More Resources
3)Risk sharing etc.
Answer:
Registration of partnership firm means recording of the firm's name and its relevant prescribed particulars, in the Register of firms kept with the Registrar of firms. It provides conclusive proof of the existence of a partnership firm. It is optional for a partnership firm to get registered still most of the partnership firms voluntarily get themselves registered as in case of non-registration, the firm has to face the following consequences (i) A partner of an unregistered firm cannot file a suit against the firm or other partners. (ii) The firm cannot file a suit against third parties. (iii) The firm cannot file a case against the partners. Hence, to avoid these disadvantages, partnership firms register themselves.