Sections 56 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter VII, on registration of firms, opens with two short enabling sections. Section 56 lets a State Government switch the whole chapter off for its State or part of it. Section 57 lets the State Government appoint Registrars of firms and define their areas. To check how registration works for a firm in your State, our partnership firm registration service can help.
The State Government of any State may, by notification in the Official Gazette, direct that the provisions of Chapter VII do not apply to that State or to any part of it specified in the notification (s.56). The State Government may appoint Registrars of firms for the purposes of the Act and define the areas within which they exercise their powers and perform their duties (57(1)). Every Registrar is deemed a public servant within the meaning of section 21 of the Indian Penal Code, as the text states (57(2)).
Chapter VII at a glance
Chapter VII runs from section 56 to section 71. It deals with how a firm is registered, how changes are recorded, how the register can be inspected, the effect of non-registration and penalties. Registration is not compulsory under the Act: the text of section 58 begins "The registration of a firm may be effected at any time". The consequence of staying unregistered appears in section 69; see section 69.
| Section | Subject |
|---|---|
| 56 | Power of a State to exempt itself from the chapter |
| 57 | Appointment of Registrars |
| 58 | Application for registration |
| 59 | Registration |
| 60 to 63 | Recording changes |
| 64 and 65 | Rectification and amendment |
| 66 and 67 | Inspection and copies |
| 68 and 69 | Evidence and effect of non-registration |
| 70 and 71 | Penalty and rules |
Section 56: power to exempt
The text of section 56 reads, in substance: the State Government of any State may, by notification in the Official Gazette, direct that the provisions of this chapter shall not apply to that State or to any part thereof specified in the notification.
| Element | Text |
|---|---|
| Who | The State Government of any State |
| How | By notification in the Official Gazette |
| What | The provisions of Chapter VII shall not apply |
| Where | To that State, or to any part of it specified in the notification |
Points to note:
- The power is the State's, not the Centre's. It covers a whole State or only a specified part.
- It switches off the whole chapter, not just a section. The text does not give the State a power to exempt particular firms or classes of firms.
- The text does not say when or why a State would use it, and gives no list of States that have. Whether any notification applies to your area should be checked with the State's Registrar or Gazette.
Example. If a notification under section 56 exempted a particular district, the registration chapter would not apply there. Firms in that district would not follow Chapter VII's registration procedure. A firm in a neighbouring district not covered would. The text does not say what happens to the rest of the Act, which continues to apply on its own terms.
Do not assume that registration is available or unavailable in your State without checking. Our article on registration of a partnership firm: why and how gives the general picture, and the State-wise position is a matter for each State's rules.
Section 57(1): appointing Registrars
The State Government may appoint Registrars of firms for the purposes of the Act, and may define the areas within which they shall exercise their powers and perform their duties.
This is why registration is local. Under section 58, the application is sent to the Registrar of the area in which any place of business of the firm is situated or proposed to be situated; see section 58. The area of each Registrar is set by the State, so which office you deal with depends on your State's arrangements.
The text does not say how many Registrars there should be, who may be appointed, or what rank they hold. These are for the State Government.
Section 57(2): public servant
Every Registrar shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code. That is how the text of this copy reads. The Indian Penal Code reference should be read against current law and the official text of the Act, because the criminal law has been reorganised since the Act was passed; this article does not go further than the wording of the copy consulted.
In practical terms, the sub-section places the Registrar's office within the framework that treats such officers as public servants. The text does not elaborate on consequences.
Forms, fees and portals
The central Act does not fix forms, fees or an online portal. Section 58 refers to a statement "in the prescribed form" with "the prescribed fee", and section 71 gives the State Government power to make rules. So forms, fees and procedure come from each State's rules, and may differ from State to State. See sections 70 and 71.
What can the deed change?
Sections 56 and 57 are about State power and administration, not about the relationship between partners. A deed cannot change them. Partners should, however, state in the deed whether the firm will be registered and who is responsible for it.
Practical points
- Find your Registrar's area from your State's rules and website before you apply.
- Check whether your State has exempted any area from Chapter VII.
- Do not rely on a form number or fee quoted from another State.
- Remember the consequence of non-registration in section 69 before deciding not to register.
Need help with registration?
Because the Registrar's area and the forms and fees come from your State's rules, the first step is to check what applies where your firm does business. Our partnership firm registration service can guide you through the steps for your State. Tell us where your firm's place of business is, and we can take it from there.
Key takeaways
- A State Government may, by Gazette notification, exempt the State or any specified part of it from Chapter VII (s.56).
- A State Government may appoint Registrars of firms and define their areas (57(1)).
- Every Registrar is deemed a public servant within section 21 of the Indian Penal Code, as the text states (57(2)).
- Forms, fees and procedure are set by each State's rules, not by the central Act.
Read next
- Section 58: application for registration
- Section 69: effect of non-registration
- Registration of a partnership firm: why and how
- Partnership registration process: State-wise guide
Disclaimer: Based on the text of the Indian Partnership Act, 1932 as consulted on 1 October 2026. Several States have amended the registration chapter and make their own rules, forms and fees for the Registrar of Firms. This article is general information, not legal advice; check the official text and your State's rules before acting.