According to the Partnership Act, 1932 of Pakistan, while it is not mandatory for a partnership firm to be registered, there are significant legal and practical benefits to doing so. The registration of a firm is effectuated by submitting a statement in the prescribed form, along with the prescribed fee, to the Registrar of Firms in the area where the firm’s principal place of business is situated. This statement must be signed by all partners and include details such as the firm name, the principal place of business, the names of other places where the firm carries on business, the dates when each partner joined the firm, and the names and permanent addresses of the partners .
While non-registration does not invalidate the existence of a partnership, it does impose certain legal limitations. For instance, an unregistered firm cannot sue any third party to enforce a right arising from a contract or conferred by the Partnership Act, 1932. Similarly, the partners of an unregistered firm cannot sue each other to enforce a right arising from a partnership agreement. However, an unregistered firm can still be sued by a third party, and the partners can enforce their rights against the firm internally .
Thus, while it is not obligatory to file a copy of the partnership agreement with a competent authority, registering the partnership confers significant legal advantages and is generally advisable for protecting the rights of the partners and ensuring the firm’s ability to engage in legal proceedings effectively.
