1)we are based in Mumbai,please tell if registration of partnership deed is mandatory 2)one partner is retiring and another is getting admitted ,this partnership is not registered from last 20 years,do we need to get it first registered and then apply for retirement cum admission.
Dear Sir
Hope you are doing well !!
No, it is not mandatory to register the Partnership firm. But If partnership firm not registered it will lead to the following consequences:
a) It will not be possible to sue one partner against another partner or against the firm and vice versa in the court of law to claim right.
b) Partnership firm cannot sue third party in the court of law for enforcement of its right (See Sec.69 of Partnership Act 1932).
Etc.
No it's not mandatory for income tax matters but it is required for civil matters like filing a case in name of partnership firm etc.
No it is not mandatory to register partnership deed. Registered deed is recognised in the court of law and clauses of the deed can be enforced at the time of dispute among the partners.
Hello Sir,
Please refer the replies in line below:
1) No, it is not mandatory to register the partnership. However, it is advisable to register the same so that the same becomes enforceable if there is any dispute among the partners at any point of time.
2) You may form a reconstitution deed for these changes in the partners addition and removal.
Thanks
Damini
Hi,
Indian partnership Act 1932 no where states that registration of partnership is compulsory. So registration is not compulsory even in Maharashtra as well. However any third party can sue registered / unregistered partnership firm but only registered firms can sue third parties & hence registration is opted in majority cases.
Thanks,I want to know Ours is a 20 year old unregistered partnership deed of Mumbai and we made reconstitution deed in mar19 My query is 1)can we directly register the present reconstituted partnership deed(after retirement of old partner and admission of new partner in mar 2019) to registrar of firms Or we have to take a long cut,register 20 year old deed first and then file for reconstitution Thanks
You can register at any time with the registrar of firms along with the amended partnership deed.
Hi,
Yes, you can register the present reconstituted partnership deed(after retirement of old partner and admission of new partner in mar 2019) to registrar of firms.
There is no time limit.
Hi,
Let me take it this way !
Since the partnership deed having retiring partner was never registered with the registrar. So this would anyways be a new firm for Registrar and not any existing firm.
So in this case, I would suggest that if you want to register the firm with Registrar of firms then:
- Let the old deed as it is or cancel it out.
- Enter a new partnership deed with new partners who want to join with no mention of earlier existing deed or retiring partner.
- Register this new deed with the Registrar.
Else...
You will have to first register your 20 year old deed and then go for reconstitution.
Thanks
Damini
- reconstitution deed is a supplementary deed which is the supporting deed for the original one. You have to register the both.