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 Registration of Firm, gives an order in the 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. A firm can exist and operate without registration. However, an unregistered firm cannot enforce certain rights in court (like filing a suit against a third party or claiming set-off). The disadvantages of non-registration are in Section 69.

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