Question

Registration of partnership is _________.

• A. Compulsory
• B. Not compulsory
• C. Compulsory if its turnover exceeds specified amount
• D. Compulsory if it is liable to tax audit under the Income Tax Law

Answer 1

The correct option is B Not compulsory

A partnership basically refers to the contract between two or more people who have agreed to carry on certain business in order to achieve common goals.

Under Partnership Act, 1932 registration of partners and the partnership firm is not compulsory however it is advised to get the firm registered for many legal requirements.