Partnership Registration

Registration means getting the partnership registered with the Registrar of firms of the area in which the place of business of the firm is situated or proposed to be situated. Under the Partnership Act, it is not compulsory for a partnership firm to get itself registered. Hence, it is for the partners to decide whether to get their firm registered or not. 




But, indirectly, by creating certain disabilities from which an, unregistered firm suffers, the law has made the registration of firms desirable, these disabilities are such that sooner or later, every firm has to get itself registered. It should be noted that registration does not create a partnership. It is only evidence of the existence of a partnership, and the facts entered in the records of the Registrar of firms are treated as conclusive proof by the courts.

 

Procedure for Registration

Since, registration of a firm is not compulsory, it can be affected at any stage. When the partners decide to get the firm registered, they have to file a statement in the prescribed form and send the same along with the prescribed fees by post or deliver it to the Registrar of Firms of the area in which any place of business of the firm is situated or is proposed to be situated. The statement must be signed by all the partners or by their authorised agents. It shall state

a) the name of the firm;

b) the principal place of business of the firm;

c) the names of other places where the firm carries on business;

d) the date when each partner joined the firm;

e) the names in full and permanent addresses of the partners; and

f) the duration of the firm.

As required under Section 58(1), the contents of the statement should be duly verified by the persons signing it. Further, the firms are restrained from using the words in the name such as ‘Crown’, ‘Emperor’. ‘Imperial’, ‘Royal’, etc, or any other such name by which it would appear as if the firm has some sanction or patronage of the government. When the Registrar is satisfied that the provisions of Section 58 have been duly complied with, he shall record an entry of the statement in a register called ‘Register of Firms’ and shall file the statement. He shall then issue a certificate of registration. If, later on, any change is made, (i) in the name of the firm, (ii) in the location of its principal place of business, (iii) in the names and/or addresses of partners, or (iv) in the constitution of the firm, the same should be duly notified to the Registrar so that he can incorporate the same in the register of firms.

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