Ccording to the Partnership Act, 1932, it is not compulsory for a partnership firm to get itself registered

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#1

According to the 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 ?


#2

Legally it is not compulsory for a partnership firm to get itself registered. Nevertheless, partners prefer to get the firm registered to overcome the following limitations:
(i)The partner of an unregistered firm cannot file a suit against any other partner to settle the disputes.
(ii) he partner of an unregistered firm cannot file a suit against the partnership firm.
(iii)The partner of an unregistered firm cannot file a suit against an outsider or third party for recovery of any claim.
(iv)Outsiders can file a suit on an unregistered firm for claim.