Though the Indian Partnership Act, 1932 does not make registration of partnership mandatory, section 69 places certain disadvantages to an unregistered firm. Following are the disadvantages of an unregistered firm.

Only a registered partnership firm can claim a setoff

An unregistered partnership cannot recover any sum due from third parties if the amount in question is more than Rs. 100/-

Only a registered partnership firm can file a legal suit in the court of law for the enforcement of rights against partners.

The partners of an unregistered firm cannot file suit against another partner of the firm or the firm itself.

Hence, we strongly advise registering the partnership firm. An unregistered firm can be registered at any time. Every state government has established the office of the registrar of firms, which is vested with the powers to register the firm and issue the Certificate of Registration of the Firm and a copy of the extracts of the register of firms where the partnership name has been entered.