Partnership Firms in India
Partnership Firms in India
Partnership 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 right conferred by the Partnership Act.
- No suit 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.
- An unregistered firm or any of its partners cannot claim set-off or other proceedings in a dispute with a third party. Therefore, it is advisable for any partnership to register sooner or later.
Partnership Firm Registration
A person can register the partnership firm under Section 58 of the Indian Partnership Act at any time, even subsequent to the formation. The registration of a partnership firm is done by filing an application with the Firm Registrar of the area in which any place of business is situated or proposed to be situated. When the Registrar of Firms is satisfied that the provisions of Section 58 are duly complied with, a record of entry of the statement is made in the Register of Firms and Certificate of Registration is issued. The application for registration of Partnership Firm must contain the prescribed registration form for incorporation of a company, certified true copy of the Partnership deed entered into and ownership proof of the principal place of business.