CAIIB · BRBL · Chapter 50

Effect of Non-Registration of Partnership Firm

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.

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Q

Under which Act is a partnership firm governed in India?

A

The Indian Partnership Act, 1932 (IPA).

Q

Is registration of a partnership firm compulsory or optional?

A

Optional - the firm exists from the date of the partnership agreement.

Q

When does a partnership firm come into existence?

A

The moment partners agree to share the profits of a business.

Q

Under which section is a firm registered with the Registrar of Firms?

A

Section 58 of the Indian Partnership Act, 1932.

Q

Is registration of a company compulsory, and under which section?

A

Yes, under Section 7 of the Companies Act, 2013 - no incorporation, no company.

Q

Is registration of an LLP compulsory?

A

Yes, under the Limited Liability Partnership Act, 2008; an LLP is a body corporate.

Q

Which section deals with the effect of non-registration of a firm?

A

Section 69 of the Indian Partnership Act, 1932.

Q

Does non-registration impose a monetary penalty?

A

No; it imposes only procedural disabilities - mainly loss of the right to sue.

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