Partenership Firm Registration
When two or more parties establish a legal agreement to manage and operate a business and share both profits and losses, partnership firm registration is necessary.
Small businesses should consider forming a partnership because the process is simple and there are few legal requirements.
Partnerships have been legal in India since 1932, making them one of the country’s oldest types of business formations. Even after it has been founded, a partnership firm can be registered. There are currently no consequences for failing to register a partnership firm. But unregistered Partnership firms are denied certain rights under section 69 of the Partnership Act that majorly deals with the effects of non-Registration of Partnership firms
Partnership Registration is highly recommended
Partnership registration is critical as the nature of partnerships is uncertain. All the clauses when spelt out create a sense of transparency. That is why it is recommended to create a balanced Partnership Agreement for partners.
Here are some of the benefits of partnership deed registration:
• Gives partners the ability to file a case against third parties, and other partners
• Grants the power to claim set-off against any third-party claim
• It’s easier and faster to convert into any other business structure if the partnership is registered