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Particulars
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Registered Partnership Firm
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Non-Registered Partnership Firm
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Provision of Indian Partnership Act 1932 (referred as “ACT”)
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The said Partnership Firm are registered and established under the provision of Indian Partnership Act 1932 (referred as “ACT”), so the provisions of Indian Partnership Act 1932 apply.
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The said Partnership Firm are not registered and established under the provision of Indian Partnership Act 1932 (referred as “ACT”), so the provisions of Indian Partnership Act 1932 do not apply.
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Trustworthiness and reliable
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The incoming partner can rely on trustworthiness of the other partners.
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The incoming partner cannot rely on trustworthiness of the other partners.
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Power to suit to file case against Third Parties
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Power to suit to enforce a right arising from a contract shall be instituted, by or on behalf of a firm against any third party unless the firm is registered, and the persons suing are or have been shown in the Register of Firms as partners in the firm.
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No power to suit to enforce a right arising from a contract shall be instituted, by or on behalf of a firm against any third party unless the firm is registered, and the persons suing are or have been shown in the Register of Firms as partners in the firm.
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Power to suit by a partner against the firm or other Co-partners
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Power to suit to enforce a right arising from a contract or conferred by this Act, by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm.
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No power to suit to enforce a right arising from a contract or conferred by this Act, by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm.
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Ability to claim set off
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The registered Partnership Firm enables the partners with power to claim set-off. When any third-party files a suit against the Partnership Firm, the Partnership Firm can claim the set-off, if any against the claim of third Party.
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The power to claim set off against the third party is available only when the firm is registered under The Partnership Act 1932.
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Conversion into LLP & Private company
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Registered Partnership Firm can easily convert into LLP & Private company.
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Unregistered Partnership Firm first registered himself and then convert into LLP or Private company.
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Benefits under Income Tax Act
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The Registered firms is entitled to claim tax benefit under the provision of Income Tax Act.
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The Unregistered firms cannot claim tax benefit under the provision of Income Tax Act.
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