Frequently Asked Questions
A partnership business may be registered either when it is first formed or even after. The registrar of firms in the area where the business is located must receive the application for registration. To take advantage of the rights and benefits that may be enjoyed only by a registered corporation, it is advised to have the company registered as soon as it begins doing business.
Both registered and unregistered partnerships are legitimate and acknowledged by law, according to the Partnership Act. Registration for partnerships is not required. Most firms choose unregistered partnerships in the beginning until they reach a steady level. Any time after the partnership’s creation, it may become registered.
If the Partnership is not registered, the firm cannot file suit against any partner or the third party. A partner also cannot sue the partnership firm for his claim.
A partnership firm is expected to keep its financial statements and books of accounts up to date. According to the Income Tax Act, the Income Tax Return for the relevant financial year must be submitted before the deadline.