Question

Registration of a partnership firm is compulsory under the Partnership Act, 1932.

Options

• True

• False

Answer 1

False

Explanation:

Under the Indian Partnership Act, 1932, the registration of a partnership firm is not compulsory. It is optional, but an unregistered firm suffers from certain disadvantages, such as:

1. It cannot enforce its claims against a third party in a court of law.
2. Partners cannot sue the firm or other partners.
3. It cannot claim a set-off in legal proceedings above ₹100.