Friday, November 13, 2009

Consequences or Effect of Non Registration


If you don't know process of firm registration and you start your business without your firm get registered under registrar of firms in your country, it would have some effects which may not be avoided, and i would obviously wish that you must know how a company gets effected if it's unregistered.

The non registration creates the following disabilities.

1. Disability of firm
Unregistered firm cannot file suit for the recovery of the dues or for other matters against third parties.

2. Disability to partner
The partner of an un-registered firm cannot bring a suit for the enforcement of right against a third party or his co-partner unless the firm is registered.

3. Ability against firm and partner
The third party has full right to file suit of their dues against the un-registered firm and the partners.

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