Introduction:

Partnership is an agreement between two or more parties to carry on business on mutually agreed terms and share its profits and losses. The partnership can be oral or written. An written partnership agreement is called a Partnership Deed.

It isn't obligatory to enlist a Partnership Deed . In any case, it is consistently prudent to enroll the equivalent. The organization is represented by the Partnership Registration Act, 1932. In understanding to the demonstration the accomplices can enlist its Firm with the Registrar of Firms where the organizations primary office is found.

In this article we will see a portion of the Features of Partnership Deed, and the Consequences of enrollment and Non-Registration of a Partnership.

Feature of a Partnership:

1. It is between two or more persons
2. An mutual agreement on mutually agreed terms and conditions
3. Involves sharing of profits and losses
4. The liability of Partners is unlimited
5. The partnership does not enjoys a separate legal status
6. Involves Capital contribution of partners
7. It has an Agency Relationship
8. Is a Lawful form of Business
9. The partners enjoy Ownership and Control in the business
10. Transfer on Interest
11. The partners share Mutual trust and confidence
12. Partners can decide the Duration of Partnership

Partnership Registration Pros and Cons:

In spite of the fact that Registration of Partnership isn't obligatory it is consistently prudent. Let us comprehend the advantage of enlistment and outcomes non-enrollment of Partnership:

Benefits of Registration of a Partnership:

1. Partnership registration enables partners the right to sue
2. If a partnership is registered the partners can enforce its claims against a third party in case of discrepancies
3. Further, If the partners have discrepancies against each other the same can be resolved in the court of law
4. A registered partnership firm enjoys better credibility in the market
5. A registered Partnership firm will have better business opportunities due to reliability and will have eventually enjoy a better Goodwill.

Consequences of Non- Registration of partnership:

1. A non- registration Partnership cannot file an legal suit against any partners in case of discrepancies and disputes among its partners.
2. The firm cannot take nay action in the court of law against any other parties for settlement of its claims.
3. Further, a suit cannot be filed by the partners to enforce their rights against the partnership firm.
4. A non-registered partnership cannot enforce claims against the third party in the court of law.
5. A non- registered partnership firm has less credibility and reliability and therefore does not enjoys business opportunities and goodwill in comparison to a registered partnership firm.
6. It cannot claim any adjustments for any amount exceeding Rs. 100/-

However, the following rights are not effected by non- registration of a partnership firm:

1. The right to sue third party where there occurs any infringement of patent rights.
2. The official assignee or receiver will still have the power to realize the property of an insolvent partner.
3. A suit in which the claim does not exceed Rs 100/-
4. The partners of an unregistered firm still has the rights to sue for dissolution of firm or for settlement of accounts of a dissolved firm or right to realize the property of a dissolved firm.

Procedure of registration of Partnership Firm:

The cycle on Registration of a Partnership Firm is currently made on the web. Structure An application for registration is to be filled and physical duplicates of Documents are to be submitted inside 30 days from the date of use with the Registrar of Firms. The Partnership Deed and Application ought to contain the accompanying fundamental data:

1. The name of the firm
2. The name and address of the Partners
3. Date of commencement of partnership
4. The nature of business to be carried
5. The principal place of business from where the partnership business shall operate, if any other additional place of business exist the same shall also be made available.
6. Date of joining of partners
7. Duration of the partnership
8. Profit and loss sharing ratios
9. Capital contribution
10. Dissolution and winding up clauses
11. Any other mutually agreed terms and conditions

The cycle on Registration of a Partnership Firm is currently made on the web. Structure An application for registration is to be filled and physical duplicates of Documents are to be submitted inside 30 days from the date of use with the Registrar of Firms.