Procedure for Registration of Partnership Firm
1. Preparation of Partnership Deed: The first step in registering a partnership firm is to prepare a partnership deed. This document should contain details such as the name of the firm, names of partners, nature of business, profit-sharing ratio, etc.
2. Visit the Registrar: The next step is to visit the Registrar of Firms in the state where the firm is located. The partners should submit the partnership deed along with the prescribed form and fees.
3. Verification and Approval: The Registrar will verify the documents and if everything is in order, the partnership firm will be registered. A Certificate of Registration will be issued to the partners.
4. Publication in Gazette: After registration, it is advisable to publish a notice in the official Gazette and in local newspapers to inform the public about the existence of the partnership firm.

Consequences of Not Registering a Partnership Firm
1. Lack of Legal Recognition: An unregistered partnership firm does not have legal recognition. This means that the firm cannot file a suit against a third party or another partner in case of a dispute.
2. No Protection: Partners in an unregistered firm do not enjoy the same level of protection as partners in a registered firm. They may face difficulties in enforcing their rights in court.
3. Tax Implications: Unregistered partnership firms may face tax implications as they are not eligible for certain tax benefits available to registered firms.
4. Inability to Expand: Unregistered partnership firms may face challenges when trying to expand their business or enter into contracts with other parties as many entities prefer to deal with registered firms for security and legal reasons.