"Registration of a partnership firm is not compulsory but beneficial."

cbse
formsofbusiness

#1

“Registration of a partnership firm is not compulsory but beneficial.” Do you agree ? Give three reasons in support of your answer.
OR
If registration is optional, why do partnership firms willingly go through this formality and get themselves registered ? State any three reasons.


#2

It is not compulsory for partnership firms to get themselves registered. However, it is beneficial to get themselves registered because an unregistered firm has to suffer the following consequences :
1.A partner of an unregistered firm cannot file a suit against any other partner or the firm for enforcing his legal rights.
2.An unregistered firm cannot file a suit against any third party or partner for enforcing legal rights.
3.Any partner of an unregistered firm cannot claim a set off in a legal proceeding carried on against the firm by a third party for enforcing any legal right.
4.No salary or commission is provided to any of the partners.