Procedure for registration of partnership firm:
1. Application for Registration
2. Verification of Application for Registration
3. The duly signed copy of the Partnership Deed (which contains all the terms and conditions) must be filled with the registrar
4. Deposit/pay the necessary fees and stamp duties
5. Once the registrar approves the application, the firm will be entered into the records. And the registrar will also issue a certificate of incorporation.
Consequences of non-registration:
1. It cannot enforce its claims against a third party in a court of law.
2. It cannot claim adjustment for any sum exceeding Rs. 100. Suppose an unregistered firm owes Rs. 1200 to A and A owes Rs. 1000 to the firm the firm cannot enforce adjustment of Rs. 1000 in a court of law.
3. It cannot file a legal suit against any of its partners.
4. Partners of an unregistered firm cannot file any suit to enforce a right against the firm.
5. A partner of an unregistered firm cannot file a suit against other partners.
