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Procedure for Registration of a Partnership Firm and Effects of Non-Registration”

1. Introduction The Indian Partnership Act, 1932 does not make registration compulsory. A partnership firm can legally exist even without registration. However, Section 69 of the Act imposes strict disabilities on an unregistered firm regarding civil rights and enforcement of contracts. Therefore, although optional in theory, registration becomes practically mandatory . Courts have repeatedly said that registration is “not mandatory, but essential for full legal protection.” 2. Meaning and Purpose of Registration Registration means: Recording the firm’s name, Details of partners, Place of business, in the Register of Firms maintained by the Registrar. Purpose To create a public record of the firm. To avoid fraud and disputes. To give partners the ability to enforce contract rights in courts. To make business transactions more secure and transparent. 3. Legal Basis for Registration Registration provisions are given in: Section 56 (Appointment of Registrar),...