A partnership is a form of business where usually two or more individuals work together, towards a common goal, with a motive of earning profit. In legal terms, a partnership is a form of agreement between 2 or more parties to run a business. In a partnership firm, all the partners have unlimited liability and share the profits either in equal proportions or as per the capital contributed by them towards the business setup.

An essential part of this form of business is the partnership deed. In simple terms, the partnership deed outlines the terms and conditions for the working of the partnership firm and the partners. It is a document which states the legal responsibilities of the firm and the partners of the firm. Since oral agreements do not hold as much value as the written agreement, therefore it is essential that the partnership deed is in the form of a written agreement. A partnership deed contains details like the name and address of the partnership firm and all the partners, the profit-sharing ratio, duration of the partnership, etc.

Although the document contains all the essential and relevant information about the partners and the partnership firm, it is not mandatory to get it registered. However, there are certain benefits that such firms and partners get if the partnership deed is registered.

The following are the benefits for getting the partnership deed registered:

1. Conversion: if the partnership deed is registered, the conversion of the partnership firm to other business forms becomes much more simplified. The process of conversion of the firm into a Limited Liability Partnership, or a company can be done in a much-simplified manner.
2. Ability to sue: A major benefit that a partnership firm may get by registering the deed is that they are entitled to sue. An unregistered firm, on the other hand, is not given this benefit.
3. Ability to sue partners: In the presence of a registered partnership deed, the partnership firm is also entitled to sue any of the partners in the firm. The firm may sue on multiple grounds such as misconduct in the business.
4. Ability to sue the third party: by virtue of the registered partnership deed, the firms, and the partners are entitled to sue any third party. An unregistered firm, on the other hand, is not entitled to do so, however, a third party has the rights to sue the firm irrespective of it being a registered or unregistered firm
5. Claim set- off: Another benefit that a firm is entitled is the ability to claim set off. When a third party files a suit against the firm, the firm is entitled to claim set off against the third party. However, an unregistered firm cannot claim such stance in case a third party sues them.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.