For a business, there must be a proper and authenticated channel with the help of which the business can be expanded and survived. A partnership can be described as the association between two people or more than two people who tend to come together with the intention to perform business and concur to share profit or any loss that can arise out of the business activity, which is carried out by some or all of the partners.
In India, partnership firms are established and regulated by the proviso of Indian partnership act -1932 that is called ‘Act.’ The establishment process of partnership firm according to Indian partnership act 1932 allows the partnership deed registration to lie in the custody of ROF or registrar of the firm by the consent of the partners relating to the firm.
The partners pertaining to the firms can go for a new partnership firm registration online taking into account the advantages of registration. Below are given some advantages of a registered partnership firm can have over unregistered one.
Advantages of partnership firm registration
Capacity to sue any third parties
The partners relating to the registered partnership firm are capable of taking third parties for resolution of disagreement to the court coming up at some point in business or for any other dispute pertaining to the partnership firm.
Any unregistered partnership firm has no right to file a suit against the third party so that to resolve their disputes till the process of deed registration gets completed. Nevertheless, the third party at all times possess the right to initiate the legal action against a partnership firm regardless of the registration status.
Can take recourse to legal action against co-partners
It cannot be said when the disagreement amid the partners crops up, whether in relation to the sharing of returns or any other dispute concerning operations relating to the partnership firm. Any dispute can be resolved by the court in a better manner.
The partners found in any unregistered partnership firm are not in a position to implement any clauses pertaining to partnership deed. To put into force the aforementioned clauses, the partnership firm will need to get online partnership firm registration in India by following the legal process prescribed for the activity.
Capability to claim set-off
The registration pertaining to a partnership firm makes possible for the partners to claim set-off. As any third party takes to legal recourse against the registered partnership firm, it will be possible for the partnership firm to claim set-off, in case any in opposition to the claim made by the third party. The aforementioned power or right to claim set-off cannot be availed in case the partnership firm does not hold registration yet according to the partnership act, 1932 of India.
High credibility
On the contrary to any unregistered partnership firm, any registered partnership firm enjoys the benefit of high credibility. Though both unregistered and registered partnership firms can be taken to be lawful as per the given act, any registered firm is too much favoured by the authorities.
