According to Partnership Act, 1932, it is not compulsory for a partnership firm to get itself registered, then why do partners prefer to get the firm registered?

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Solution

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.

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According to India Partnership Act 1932, it is not compulsory for a partnership firm to get itself registered, then why do partners prefer to get the firm registered ?

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