The Procedure For Firm Registration Under Partnership Act
Under the partnership Act, firm registration is optional, and not essential. This is clear from the plan of section 58 and 59. A suit by one partner to exact other partners to join in registration of the partnership is maintainable. The contract of partnership does not cancel a partnership of non registration it affects the right of a partnership registration is to make the third parties for recovery amounts due from them to the partnership. A partnership in a firm is called partnership at-will.
The name of partnership in a firm
The partners may select any firm name which will dishonestly mention that their business in the same as some other competing concerns. They cannot use words like president and royal, etc... which will mention that the firm is enjoying the help of the state. The names of all the partners may be used together as the firm name or the name of any particular partner may be used.
It may happen that the name of a partner is used as the firm name, but the name is exactly with the firm name of a competitor’s mark. A man is allowed to use his own name for carrying on a business even though it is identical with the name of another person carrying on a similar business.
The Effect of Firm Registration
The firm registration may be affected at any time by post or by sending to the locality of the recorder of firms. The recommended fees followed by the statement in the duty, the following details are declaring
- The name of firm registration
- The field of business of the firm or the principal part
- Where the firm delivers on business names to any other places
- The date when each partner combined in the firm
- The address and names of the partners
- The term of a firm
All the partners of the firm shall be verified and signed the report behalf of the authorized agents.On receipt of the statement and the fees, the registrar records an access to the reports in the secretary of firms is considered to be registered in Chennai. The register of firms can be inspected and copies of entries taken by on payment by any person to necessary fees.
The Classes Of Partners in a firm
The partners can be classified as below :
Active Partner :
An active partner is the one who actually participates in the firm of business. An agreement is only to becomes a person is partner of the firm
Nominal Partner :
These partners join the firm by agreement but do not take any effective side in the business. Their liabilities are same as of active partners.
Sub- Partner :
The transfer of a share of a partner’s interest in a firm is called a sub partner. The rights and liabilities are limited.