Q. what are the benefits of registration of partnership firm?
ANS- The benefits of registration are:
- The major advantage of registration is that a partner of
registered partnership can sue the co-partners and as well as the firm in case of dispute. - The registered firm can also sue third parties as well as any of its partners in its own name to enforce its claim. - The third parties who have dealings with the firm can sue the firm to enforce their claim against the firm. - The incoming partner can enforce his right against the remaining partners rather than relying on the honesty of co- partners. - The retired partner is liable to all the acts of the firm dealing with third parties before his retirement. The partner who is retired from the partnership will be discharged from the liabilities from the date of his retirement from partnership by giving a public notice and effecting the necessary changes in the register of firms. As per section 33 of partnership act, the expelled partner will be treated in the same way when a partner retires from the partnership. - A partner is entitled to sue for the dissolution of the firm or for the accounts of a dissolved firm or to enforce any right or power to realize the property of a dissolved firm. - The registered firm is entitled to claim tax benefits under the provisions of Income Tax Acts. So, you can say its optional. even 80% partnership in India are non-registered and running on partnership deed & pan card for the same.