What is Partnership Registration?

Partnership registration means the registration of the partnership firm by its partners with the
Registrar of Firms. The partners should register their firm with the Registrar of Firms of the state
where the firm is located. Since partnership firm registration is not compulsory, the partners can apply
for registration of the partnership firm either at the formation of the firm or subsequently at any time
during its operation.

For partnership registration, the two or more people must come together as partners, agree on a firm
name and enter into a partnership deed. However, partners cannot be members of a Hindu Undivided
Family or husband and wife.

Registration of Partnership

As per the Partnership Act 1932, it is not compulsory to register a partnership firm. The firm does not
have a separate legal identity and registration will not alter this fact. However, registration is the
definite proof of the existence of the firm and its legality.
Non-registration of a firm has some real-life legal consequences for the partners and the firm itself. So
it is always advisable to draw up a written partnership deed and register the firm with the Registrar of
Firms. The consequences of not doing so are as follows,
 The firm cannot file legal proceedings against any third party for any situation. For example,
if the client has not paid his dues to the firm, the firm cannot sue him if it is unregistered.
 An unregistered firm cannot fail a case against a partner for any reason (like mismanagement,
theft etc)
 A partner of an unregistered firm cannot file a suit against one of the other partners either.


DEFINITION OF "PARTNERSHIP", "PARTNER", "FIRM" AND "FIRM-NAME".

"Partnership" is the relation between persons who have agreed to share the profits of a business
carried on by all or any of them acting for all. Persons who have entered into partnership with one
another are called individually, "partners" and collectively "a firm", and the name under which their
business is carried on is called the "firm-name1

What Is Partnership Firm?

Indian Partnership Act of 1932[1] defines partnership as the relation between a people who has agreed
to share profit and loss of a business carried on by them. The partners share their profits and losses in
the proportion of their respective owner.

The amount of capital contributed by each partner can provide the total capital required. The decision-
making method in a partnership firm is a corporate business. Every partner should be on the same side
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Partnership Act 1932
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before taking any decision. Without incorporation of partnership, two partners cannot start their
business.

REGISTRATION OF PARTNERSHIP FIRM:-

Registration of Partnership Firm means Registration of Partnership Deed with competent authorities
(usually REGISTRAR OF FIRMS) of the respective State(s) in which the said partnership deed is
executed on requisite stamp paper or payment of stamp duty. Presently, there are 74 (Seventy Four)
Sections in the Indian Partnership Act, 1932. Sections 56 to 70 deals with Registration to Partnership
firm under the Chapter VII and the said sections are presented here for easy and quick understanding:-

SECTIONS PATICULARS

56 Power to exempt from application of this chapter.

57 Appointment of registrar

58 Application of registration

59 Registration

60 Recording of alterations in [Firm-Name, Principal place of

business.

61 Noting of closing and opening of branches.

62 Noting of changes in Names and Address of partners.

63 Recording of changes in and dissolution of a firm.

64 Rectification of mistakes.

65 Amendment of Register by order of court.

66 Inspection of register and filed documents.

67 Grant of copies.

68 Rules of evidence

69 Effect of Non-Registration.

70 Penalty for furnishing of false particulars.

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Fundamentals Problems Faced By Not Registering a Firm

The following can be understood as the principle disadvantages faced by a partner if he/she does not
register the firm under Indian Partnership Act, 1932:

(1) A partner is not entitled to file a suit in any court of law against the other partners or the firm for
the execution of any right emerging from any undertaking or right bestowed by the Partnership Act.

(2) A right evolving from an undertaking cannot be implemented in any Court of law by or in support
of one’s firm against any other firm.
(3) Moreover, the firm or any of its associates cannot assert a set off (i.e. fundamental negotiation of
debts possessed by the argufied parties to one another) or other actions in a disagreement with a third
party.

Importance of Registering a Partnership Firm

The registration of a partnership firm is optional and not compulsory under the Indian Partnership
Act. It is at the discretion of the partners and voluntary. The firm’s registration can be done at the time
of its formation or incorporation or during the continuance of the partnership business.

However, it is always advisable to register the partnership firm as a registered firm enjoys certain
special rights and benefits as compared to the unregistered firms. The benefits that a partnership firm
enjoy are:

A partner can sue against any partner or the partnership firm for enforcing his rights arising from a
contract against the partner or the firm. In the case of an unregistered partnership firm, partners cannot
sue against the firm or other partners to enforce his right.

The registered firm can file a suit against any third party for enforcing a right from a contract. In the
case of an unregistered firm, it cannot file a suit against any third party to enforce a right. However,
any third party can file a suit against the unregistered firm.

The registered firm can claim set-off or other proceedings to enforce a right arising from a contract.
The unregistered firm cannot claim set off in any proceedings against it.

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Procedure for Registering a Partnership Firm

Step 1: Application for Registration

An application form has to be filed to the Registrar of Firms of the State in which the firm is situated
along with prescribed fees. The registration application has to be signed and verified by all the
partners or their agents.

The application can be sent to the Registrar of Firms through post or by physical delivery, which
contains the following details:

 The name of the firm.

 The principal place of business of the firm.
 The location of any other places where the firm carries on business.
 The date of joining of each partner.
 The names and permanent addresses of all the partners.
 The duration of the firm.

Step 2: Selection of Name of the Partnership Firm

Any name can be given to a partnership firm. But certain conditions need to be followed while
selecting the name::

The name should not be too similar or identical to an existing firm doing the same business.

The name should not contain words like emperor, crown, empress, empire or any other words which
show sanction or approval of the government.

Step 3: Certificate of Registration

If the Registrar is satisfied with the registration application and the documents, he will register the
firm in the Register of Firms and issue the Registration Certificate. The Register of Firms contains up-
to-date information on all firms, and anybody can view it upon payment of certain fees.

An application form along with fees is to be submitted to the Registrar of Firms of the State in which
the firm is situated. The application has to be signed by all partners or their agents.

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 CIN COMPANY ROC

ABZ-9988 RICHA KHEMKA WORKS LLP KOLKATA

AAS-5824 ARVS TRIAD LLP Mmumbai

AAW-9834 Q2 RESIDENCES LLP Ernakulam

AAV-7356 DASHA LIFE SCIENCES LLP

Hyderabad

AAH-7104
G.D. MARKETING LIMITED LIABILITY Shillong
PARTNERSHIP

AAV-8167
SUPERFAST REGENCY LLP Kolkata

AAO-1427 TGV AGRI EXPORTS LLP

Mumbai

AAA-8917 KAJAH CATTLE RANCH LLP

Ernakulam

AAQ-6877
RR NANO TECHNOLOGY LLP Ahmedabad

AAY-1931 SHREYA GLOBAL HOSPICARE LLP

Cuttack

AAY-4890 TATHASTU WEALTH CREATORS LLP

Uttarakhand

AAQ-3031 ADALBERT SYSTEMS LLP

Ahmedabad

AAW-6547 ROP-I AGRITECH SERVICES LLP

Goa

AAZ-3905 CAPROS ADVISORY LLP

Delhi

AAS-1530
EARTH WORM VENTURES LLP Chennai

 Following are the details of registration firm in India with various state

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Government official
Partnership Deed and Provisions of the Indian Partnership Act 1932

Partners are two or more people who agree to carry on a business and share the profits and losses of
the business. They are persons who join hands together with a common interest to start a business and
share its future profits or losses.
Partnership defines the state of being associated with the partners who have agreed to carry on the
business by all or any one of them acting for all and sharing the business profits and losses.
According to section 4 of the Indian Partnership Act,1932, “Partnership is the relation between
persons who have agreed to share the profits of a business carried on by all or any them acting for
all.”
The Indian Partnership Act 1932 further states that the persons who have agreed to enter into a
partnership are known individually as partners and collectively as a firm

Meaning of Partnership Deed:

A partnership deed is a written document among the partners related to the terms and conditions of
the partnership business. It is a legal agreement between partners to run an enterprise. A partnership
comes into existence by an agreement that may be written or oral. Thus a document that contains all
the terms of the partnership as agreed to by the partners is called a Partnership Deed or Article of
Partnership.
A written Partnership Deed is a very important document to have, as it helps to settle any possible
dispute with regard to the terms of the partnership.
It is a document signed by all the partners, after which it should be duly stamped under the Indian
Stamp Act, 1889, which makes it a legal document. A written deed serves as a piece of evidence in
the Court of Law.

Conclusion:-

In partnership firm there is no registration compulsory to register partnership firm under partnership
act 1932. But there are some consequences if partnership firm is not registered like partners cannot
file suit against non-registered firm and also firm cannot file against third party. There is huge
difference between company and partnership firm . A legal document partnership deed shows all legal
commitment which partners decided between both.

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