Partnership (or) company registrations.Firms in India are governed by the Indian Partnership (or) company registrations,Act 1932.These is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. With the introduction of LLP in India, Firms are fast losing their prevalence due to the added advantages offered.
There are two types registered and un-registered firm. It is not compulsory to register. however, it is advisable to register a Partnership firm due to the added advantages.
Easy to Start
It is easy to form as no cumbersome legal formalities are involved. Its registration is also not essential. However, if the firm is not registered, it will be deprived of certain legal benefits.
Some of the major benefits of registering:
1. If there is any dispute, a partner can file a case in the court of law against the firm or other partners.
2. It confers power to the firm to file case in the court of law against third parties.
3. Also, It gives the power to claim set-off if a third party sues the firm to recover a sum of money.
Annual Filing NOT Required
A Partnership firm is not required to file its annual accounts with the Registrar each year unlike a LLP or Company. LLP and Company’s are required to file their annual accounts with Registrar of Companies each year.