Introduction:
Registering a firm is an important step for any business entity. It not only provides legal recognition to the business but also helps in availing various benefits and protections offered under the law.

Explanation:
The given statement is "Registration of a firm is optional". Let us understand why registration of a firm is optional.

- No legal requirement: There is no legal requirement for a firm to register itself. However, if the firm wishes to avail certain benefits and protections offered under the law, it may choose to register itself.
- Advantages of registration: Registration of a firm provides certain advantages such as legal recognition, separate legal entity status, limited liability protection, access to credit facilities, etc.
- Types of registration: A firm can be registered under various laws such as the Companies Act, 2013, Partnership Act, 1932, Limited Liability Partnership Act, 2008, etc. The type of registration depends on the nature of the business entity and the number of members involved.
- Compliance requirements: Once a firm is registered, it is required to comply with various legal and regulatory requirements such as filing of annual returns, maintenance of books of accounts, payment of taxes, etc.

Conclusion:
In conclusion, registration of a firm is not compulsory but it is advisable to do so in order to avail the benefits and protections offered under the law. It is important to comply with the legal and regulatory requirements once a firm is registered.