Question

Registration of a partnership firm ________.

• A. is not compulsory
• B. is compulsory
• C. is not beneficial to partners
• D. none of the above

Answer 1

The correct option is A is not compulsory

Registration of partnership is not compulsory in India but as per the Partnership Act, but there is a written agreement of partnership which is called a partnership deed. It is a contract between two or more individuals who decide to manage and operate a business together for profit-making. The deed defines the management roles and once the Partnership deed is completed, all of the Partners will sign and date the deed and keep copies of the deed for their records, this deed can be registered because unregistered entities have severe restrictions with respect to legal enforcement of the partnership deed.

Thus the correct answer is B.