Commercial Applications
Registration of a partnership firm is compulsory under the Partnership Act, 1932.
- True
- False
Answer
False
Reason — Registration of partnership firms is NOT compulsory under the Partnership Act 1932. The Act provides that if the partners so desire, they may get the firm registered at the time of formation of partnership or afterwards. However, registration is highly desirable due to the consequences of non-registration.
Related Questions
A partnership firm cannot sue a third party in a court of law unless:
- It has a minimum of three partners.
- It is registered with the Registrar of Firms.
- It operates in more than one state.
- It has a partnership deed.
Aman and Rohan started a business as partners. They verbally agreed to share profits equally but did not create a written agreement. Later, they had a dispute about profit sharing. What could have prevented this dispute?
- Registering the firm
- A written partnership deed
- Seeking legal advice before starting
- Limiting the number of partners
Why is it recommended to have a written partnership deed?
- It is mandatory for registration under the Companies Act.
- It serves as a legal record to resolve disputes.
- It reduces the firm's tax liability.
- It ensures limited liability for all partners.
A partnership firm is not registered. The firm lent ₹50,000 to a customer, but the customer failed to repay it. Can the firm take legal action against the customer?
- Yes, as registration is optional
- No, because the firm is not registered
- Yes, if the partners agree unanimously
- No, unless the firm gets registered before filing the case