It's very obvious in the startup India registration process you get more advantages than an unregistered one. It's just that you need to make some important registration along with Partnership firm Registrations like PAN registration of the partners infirm, GST Registration, and FSSAI License registration if you are in the food sector or Shop and Establishment license. If you are legally registered you become a trustable firm in the eyes of the public and you will get the chance to increase goodwill, credibility, and business expansion easily.

When it comes to a relationship like what is a registered and unregistered partnership, several questions click in everybody's mind. What advantages would a registered partnership have and the cost of a Registered Partnership firm?

Registered Partnership Firm: Meaning
A partner firm is duly registered with the firm registrar. In accordance with the Act, if the Registrar is satisfied that the provisions of section 58 have been properly complied with, the Registrar shall record the publication of the notice in a register called the Companies Register and submit it. The organization will be deemed to be licensed on the date on which such submission is recorded and the declaration will be posted.

Comparison: Registered & Non - Registered Partnership Firm

1. Provision of Indian Partnership Act 1932 (referred to as “ACT”)
Registered Partnership Firm - The provisions of the Indian Partnership Act 1932 apply to the registered firm. A partnership Firm is registered and authorized under the provision of the Indian Partnership Act 1932 (referred to as “ACT”).
Non-Registered Partnership Firm - The unregistered Partnership Firm is established under the provision of the Indian Partnership Act 1932 (referred to as “ACT”), so the provisions of the Indian Partnership Act 1932 do not apply.

2. Consistency and dependability
Registered Partnership Firm - The upcoming partner will depend on the other partners' creditworthiness. The registered firm comes with all the legal viewing in the market.
Non-Registered Partnership Firm - The upcoming partner cannot rely on the uprightness of the other partners. Because the firm is not registered.
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3. Authority to file a case against Third Parties
Registered Partnership Firm - The power to impose a right arising from a contract shall be instituted against any third party by or on behalf of a company unless the company is registered and the individuals in the suit are or have been registered in the Registry of Companies as partners in the company.

Non-Registered Partnership Firm - No power to suit to enforce a right arising from a contract shall be instituted, by or on behalf of a firm against any third party unless the firm is registered, and the persons suing are or have been shown in the Register of Firms as partners in the firm.

4. Power to suit by a partner against the firm or other Co-partners
Registered Partnership Firm - Power to suit to enforce a right arising from a contract or conferred by this Act, by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm.

Non-Registered Partnership Firm - No authority to prosecute, by or on behalf of any party suing as a partner in a company against a company or any person claimed to be or to be a partner in the firm arising out of a contract or conferred under this Act.

5. Set-off clause advantages
Registered Partnership Firm - The registered partner organization allows partners to claim financial assistance. If a third party makes a lawsuit against the Partnership Company, the Partnership Company may, if it is, claim the refund against the third-party claim.
Non-Registered Partnership Firm - The claim set-oof advantages are not available with an unregistered firm.

6. Conversion into LLP & Pvt Limited company
Registered Partnership Firm - Registered Partnership Firm into both Limited Liability Company and Pvt Limited company.
Non-Registered Partnership Firm - Unregistered Partnership Firm cannot convert into Limited Liability Company and Pvt Limited company.

7. Advantages of the Income Tax Act
Registered Partnership Firm - Can claim tax benefits under the provision of the Income Tax Act.
Non-Registered Partnership Firm - Cannot claim tax benefits according to the provision of the Income Tax Act.

Advantages of the Registered Partnership Firm

1. Legal Powers and recognition
When a company or partnership firm is registered, they become legalized to operate worldwide with licensing. There is always legal laws, rules, and regulation that come with registered firms. You register a partnership firm under the partnership act 1932. Also, the partnership deed is involved which helps you take action whenever needed in case of misconduct. This authority is not open to an unregistered firm's partner.

2. Tax Benefits under Registered Partnership firm
Under the terms of the Income Tax Acts, a registered firm is entitled to claim tax benefits.

3. The registered business will bring a lawsuit against 3rd parties in a court
The partners of a registered firm may simply file a case in court (if necessary) to enforce some contractual right, such as the recovery of the cost of the products delivered. This is to be noticed that although an unregistered firm can’t show a collection of proof against the outsider, the outsider dependably has the head to document an argument upon both registered and unregistered firms. So this is the advantage of the partnership firm.

4. Dissolution times benefits
A partner has the right to sue for the dissolution of a corporation or the accounts of a dissolved firm or to exercise some right or power to obtain the assets of a dissolved company.

5. More leading Credibility
A partnership company that has completed the Online Registration of Partnership Firm phase enjoys a greater reputation compared to an unregistered partnership firm. While both registered and unregistered partnership companies are legal and legitimate under the Act, the authorities have a high preference for a registered firm over an unregistered one.

Consequences of Non- Registration of partnership

The results of a partnership firm that is not enrolled are:
1. Not applicable to impose its arguments in a court of law against a third party.
2. It is unable to bring legal action against either of its partners.
3. To impose a right against the firm, partners of an unregistered firm will not file any lawsuit.
4. A partner in an unregistered firm will be unable to prosecute other partners.
5. An unregistered company cannot claim adjustment for any amount exceeding Rs. 100. For instance, an unregistered firm owes Rs. 1400 amount to Z and Z owes the amount of Rs.1200 to the firm. The firm cannot expect an agreement of Rs.1200 amount in a court of law.

Recent updates for registered partnership firms: Partnership deed added clause
In a partnership deed, the following clauses are very important, every deed is not the same. In order to provide for your business interests, you, therefore, need a changed partnership deed:

Sharing of the profit: This clause shows how fair or unequal, the partners in the company would split up gains and losses.
Contribution of Capital: It should be mentioned in the Partnership Deed.
Dispute resolution: It may include that any contractual disputes will be resolved by intervention or adjustment.
Retirement or Termination: If there are cases of termination, the deed will include the that what is the basis of termination. Or if the person himself or herself wants to leave the partnership what actions are to be taken if the capital is not returned?

Conclusion

​There are far more advantages for a registered partnership firm than for a non-registered firm. In order to take advantage of a number of advantages and protections laid down under the Indian Partnership Act, 1932, it is always recommended to have your partnership firm registered. You must take consultation from CA/ CS firms in India. LegalPillers is one of the online ca and cs service providers which offers a complete package of services that includes other licenses and Company Registration In India. Like online GST registration, PAN & TAN registration, Trademark registration DSC & DPIN of all partners.
Other than this if you're looking for another registration of companies like Nidhi company registration, registration of Pvt ltd company, or section 8 company registration India. They are available to offer budget-friendly services. Apply today with us!