How to - Registration

Registration

A partnership firm is required to he registered under sections 58 and 59 of the Partnership Act, though it is not compulsory.

Every change in the constitution of a partnership is also required to be registered. But if it is not registered, then there are certain handicaps stated in S.69 of the Act.

The main handicap being that a partnership firm or its partner cannot file a suit against a third party. In Maharashtra, the Section is made more stringent making registration almost compulsory. For the purpose of income tax benefits It is necessary to register a partnership with the Department under S. 184 and S.185 of the Income Tax Act, 1961. For the Influence of the Income Tax Act on partnership, see Ch. III in Part Viii.