Multiple choice

Registration of a partnership firm is

  1. compulsory from the beginning

  2. not compulsory till first five years of beginning of the partnership

  3. not compulsory at all

  4. compulsory only if the Registrar of Firms, gives an order in this regard
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the Indian Partnership Act, 1932, registration of a partnership firm is NOT compulsory - it's entirely optional. However, an unregistered firm faces significant limitations: it cannot file a suit to enforce a contract or claim against third parties, though third parties can sue the firm. The 5-year period mentioned in option B is incorrect - there's no such time-based exemption.

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