Registration of Firms The statement shall be signed by all the partners or by their agents specially authorized in this behalf [Sec. 58(1)].

 Registration of Firms

The Partnership Act does not provide for the compulsory registration of firms. It has left it to the option of the firms to get them registered. But indirectly, by creating certain disabilities from which an unregistered from suffers, it has made the registration of firms compulsory.

Procedure for Registration

The registration of a firm may be affected at any time by filling an application in the form of a statement, giving the necessary information, with the Registrar of Firms of the area. The application for registration of a firm shall be accompanied by the prescribed fee. It shall state:

(a)  the name of the firm

(b)  the place or 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 address of the partners

(f)   the duration of the firm.

The statement shall be signed by all the partners or by their agents specially authorized in this behalf [Sec. 58(1)]. It shall also be verified by them in the prescribed manner [Sec. 58(2)].

When the Registrar is satisfied that the above provisions have been duly compiled with, he shall record an entry of the statement in the Registrar of Firms  (maintained by Registrar of Firms in respect of each registered firm for recording the necessary information relating to that firm) and file the statement (Sec. 59). He shall then issue under his hand a certificate of registration. Registration is effective from the date when the Registrar files the statement and makes entries in the Register of Firms.

Effects of Non-Registration (Sec. 69)

Suits between partners and firm: A person suiting as a partner of an unregistered firm cannot sue the firm or any partners of the firm to enforce a right from a contract or conferred by the Partnership Act.

Suits between firm and third parties: An unregistered firm cannot sue a third party to enforce a right  arising from a contract until –

1. The firm is registered, and

2. The names of the persons suing appear as partners in the Register of Firms [Sec. 69(2)]

Clain of set-off: 

An unregistered firm or any partner thereof cannot claim a set-off in a proceeding instituted against the firm by a third party to enforce a right arising from a contract, until the registration of the firm is effected [Sec. 69(3)]