Registration of a Partnership Firm


Sneha Verma

Section 56 to 71 of the Indian Partnership Act, 1932 deals with the provisions relating to registration of a Partnership Firm. The Act does not make registration of the firm mandatory and leave it optional to the partners of the firm. However, non-registration of a firm may have certain disadvantages.

Registration Process

  • A partnership firm may be registered before starting up a business or anytime during the business. In case a partnership firm goes for litigation for the enforcement of its rights under a contract, registration should be done prior to filing of the suit.

  • The process of registration of firms is simple. The registration requires application and prescribed fees, which is to be submitted before the registrar of firms of the State where the firm is located.

  • Such application must contain name of the firm, principal place of business, date when all partners joined the firm, names and permanent addresses of all the partners, and duration of the firm.

  • Application can be submitted by post or delivery to the registrar with following documents enclosed:

    • Application for registration of partnership firm under Form No. 1

    • An affidavit

    • A certified copy of the partnership deed

    • Proof of ownership or rent or lease agreement of principal place of business

  • The application has to be signed and verified by all the partners or their agents of their behalf.

  • The registrar when satisfied shall record the entry of such statement in a register called the Register of Firms.

  • The Registrar thereafter issues a certificate of registration of the firm as per section 59, which enlists complete details about the registered firm.

Effect of Non-registration of a Partnership Firm

Section 69 deals with the provisions relating to effect on non-registration of a Partnership Firm. It bars the rights of partners to sue each other or the firm for enforcement of any right arising from a contract or by the Act. It also bars on institution of suit by or on behalf of firm against third party. However, it does not bar a third party to sue the firm or partners.

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