Registration of Firms

Prior to the year 1932, there was no arrangement for the registration of firms in India. But after the enforcement of the Partnership Act, 1932, provisions for registration of firms were made. But for partnership firms, registration was made voluntary and not compulsory, or registration of the firm is dependent on the will of the partners. Nonregistration of the firm creates a number of difficulties. Therefore registration of the firm is very beneficial.

Procedure of Registration of Firm

Registration of FirmsEach state government appoints a Registrar in the state, whose work is to register the partnership firms in the state. When a firm wants to get registered, it has to fit up a form and it should have clear signatures of all partners, and send it along with the definite fees, to the Registrar’s office. The following details should be mentioned in the form

  1. Name of the Firm.
  2. Main place of business of the Firm.
  3. Names of other places where the business of the firm is carried on.
  4. Date of admission of each partner.
  5. Name and address of each partner
  6. Period of Partnership.
  7. Signatures of all partners.

Selection of Firm’s Name

While selecting the firm’s names, the words which are prohibited by the Central and State governments can be used on their approval only. The words like Crown, Emperor, empire, Queen, King, Royal, etc., and such words that offend any religion, caste, or person are made prohibited from use.

Verification by the Registrar

After receiving the above documents, the registrar carries out a proper investigation of that firm. If he is satisfied that the required formalities for registration have been fulfilled by the firm, he notes down the details of the firm in a register, called the ‘Register of Firms‘, and keeps the details received in a file for future reference. After this, he issues the certificate of Registration to the firm. In this manner, the work of registration of a firm or partnership is completed.

Information of Changes After Registration of Firm

After the of the firm, if any changes are made, its information has to be sent to the so that he makes the necessary changes in the ‘Register of the firms’. The information sent in this manner is accompanied by a prescribed fee, Information on tie following changes has to be compulsorily given

  1. Change in the Name of the firm, business, and in the main place of its business,
  2. Sending information on the opening of a new branch and closing of the old branch,
  3. Information of retirement of old partners and admission of a new partner,
  4. Information relating to minor (under 18 years of age) partner becoming a major and his continuing or leaving the firm,
  5. Information of closing the business.


The registrar can make amendments in the ‘Register of Firms’ under the following circumstances

  1. On receipt of an application of a partner.
  2. Voluntarily on the knowledge of any irregularity.
  3. On the order of the court.

Any person can inspect the files or registers of any firm on the payment of the prescribed fees, and can also make copies of any portion of the ‘register of firm’ on deposit of the prescribed fees.

Effects of Registration of Firm

  1. The other parties can file a suit against the firm,
  2. The rights of those firms or their partners have not affected the head office is not in India,
  3. The claim of any dispute which does not exceed Rs. 100 not affected,
  4. A Government Receiver has the right to realize the property of an insolvent partner,
  5. If any other firm uses the rights relating to patents in an illegal manner, the firm even on being unregistered, can file a suit against such other firms.

Effects of Non-Registration of Firm

  1. No partner can file a suit against any other partner of the firm,
  2. The firm can also not file a suit against any partner,
  3. No partner can fife a suit against the firm,
  4. The firm cannot file a suit against another (outside) party.

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