Registration of a Partnership Firm in Partnership Act 1932

The Partnership Act 1932 does not require a partnership deed or agreement to be registered.

The registration of such firm is optional.

But if registered, a partnership firm can enjoy some legal rights and facilities A partnership deed includes:-

• the name of the firm,
• nature of business,
• the capital and property of the firm,
• the capital of individual partners,
• term of partnership,
• provision for salaries, and drawings on account of profit,
• rate of interest (if any) on partners’ capital, advances and drawings,
• rights and duties of individual partners,
• provision for accounts and audit,
• division of profits and losses (capital and revenue),
• powers of admission and expulsion of a partner,
• termination of agreement by insolvency, death, etc., valuation of goodwill and
• share of assets on sale or death, and an arbitration clause.

If a partnership business is not registered, a partner of the firm can not bring a suit to enforce a right arising from a contract or conferred by the Partnership Act against the firm or his co-partners.

Also, an unregistered firm can not file a suit, or take other legal proceedings, to enforce a right from a contract, or to claim a set-off in any suit filed against it.

However, the non-registration of a firm does not affect the right of an unregistered firm to bring a suit to enforce a right arising otherwise than out of a contract and the power of an official assignee or receiver to realize the property of an insolvent partner.