Legally, it is not compulsory for a partnership firm to get itself registered, but then also partners prefer to get the firm registered due to the drawbacks and limitations of an unregistered firm. To overcome the following drawbacks the partners prefer to get the firm registered.
1. The partner of an unregistered firm cannot file a suit against any Other partner to settle the disputes.
2. The partners of an unregistered firm cannot file a suit against the partnership firm.
3. The partner of an unregistered firm cannot file a suit against an outsider or third party for recovery of claim.
4. The outsiders can file a suit on unregistered firm.