Commercial Applications
Answer
The advantages of registering a partnership firm are:
Firm can sue outsiders — The firm can file suits against third parties to enforce its claims in a court of law.
Partners can sue the firm — Partners can file suits against the firm to enforce their claims.
Partners can sue each other — Partners can file suits against each other to settle their disputes.
Liability of retired partner ceases — The liability of a partner ceases once a notice of retirement is given to the Registrar.
Right of set-off — Partners can claim a set-off in proceedings by third parties against the firm.
Information about firm — Information about the firm can be obtained by a person who wants to join the firm.
Related Questions
A partnership firm operating a travel agency is facing legal issues because one partner took a loan in the firm's name without informing the other partners. How does the principle of mutual agency apply to this situation?
What is implied agency in partnership?
What is general partnership?
Distinguish between partnership at will and particular partnership.