Persons who have entered into a partnership with one another are called individually ‘Partners’ and collectively ‘A firm’ and the name under which their business is carried on is called the firm name.
When is partnership registered
The partnership firm registration is at the sole discretion of the partners. The Partnership Act does not demand registration as a mandatory process that has to be adhered to.
However, it is always advisable to register the firm under the act since it gives the firm other advantages that send an implied message of the act favoring registered firms than the unregistered. Only registered firms are considered legally existing.
The firm can be registered at any time before the existence or during the continuance of the partnership. However, if a firm wishes to enforce a legal right arising out of any legal document by filing a case, the firm shall do so only after the registration of the partnership deed is done.
Proof of registration
A certified copy of any entry relating to the firm in the Register of firms shall act as conclusive proof of the registration of the firm. Any statement, notice of intimation recorded or noted in the registrar of firms shall be conclusive proof of any fact stated therein.
Business name of the firm
The name of the partnership firm shall not be identical or similar to existing firms in the same business.
The name of the partnership firm may include names of the members included in the register of members.
The name of the partnership firm shall be of consonance with the provisions of The Names and Emblems (Prevention of Improper Use) Act, 1950.
The name of the partnership firm may end with suffixes such as “and Company”, “and Co.” or “and Associates”.
The firms are restricted from using words that suggest, support or improvisation of the firm.
The name of the partnership firm may use “and/&” to differentiate principal name/center name/surname of the accomplice of the business.
It is mandatory to use “and/&” either in the middle of the full first names and full center names, full surnames of the partners or before the last full first name or full center name or full surname of the accomplices.
Advantages of registration
Any partner of the Partnership firm registration online in India can sue the other partner, ex-partner or the firm when there is a dispute arising out of the partnership deed which is a contract or any right arising out of the partnership act for such purpose. On the contrary, the partner can’t exercise such powers if the firm is not registered.
If partners wish to file a suit against any third party to exercise any right arising out of a contract or any other legal instrument, it is necessary that the firm is registered and partner so doing must be a partner whose name is registered in the register of firms. The same does not apply for third parties to sue against a firm.
Commentaires