CA Foundation · Business Laws · The Indian Partnership Act, 1932
Vandana and Waseem carry on business as partners. When can a firm be registered under the Indian Partnership Act, 1932?
A firm can be registered at any time by applying to the Registrar of Firms of the area where its business is located. The Act sets no deadline and requires no minimum period of profit-making.
- AOnly at the time the firm is formed
- BOnly within one year of formation
- CAt any time, by applying to the Registrar of Firms of the area where the firm is situatedCorrect
- DOnly after the firm has earned profits for three years
Explanation
A firm may be registered at any time, by sending the prescribed form, fee and statement to the Registrar of the area where the firm's business is situated or proposed to be situated. There is no time limit, and no condition of earning profits is required.
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