But unregistered partnership firms have certain rights denied in Section 69 of the Partnership Act, which deals with the effects of non-registration of a partnership firm. Some of the disadvantages of an unregistered firm are:
- The firm cannot file a suit against the third party, but Third Parties can file a suit against the firm to enforce their rights.
- No partner can file a suit against other partners of the firm.
- The firm cannot file a suit against any partner.
- A partner cannot file a suit to enforce a right arising from the contract or conferred by the Partnership Act against the firm.
Therefore every partnership firm should be registered sooner or later.
DOCUMENTS REQUIRED FOR REGISTRATION OF PARTNERSHIP FIRM
The application for registration of Partnership Firm must contain the prescribed registration form for incorporation of a company, identity proof/address proof of Partners, certified true copy of the Partnership deed entered into and proof of the principal place of business.
As identity and address proof of the Partners, any of the following two documents can be submitted:
- PAN Card
- Drivers Licence
- Aadhar Card
- Voters ID
Proof of the principal place of business can be established by submitting the following documents:
- Sale deed in case one of the Partner owns the place of business
- Rental agreement copy if the premises are rented
- Copy of latest electricity bill or water bill or property tax receipt