Partnership Firm

A business established by two or more partners with the goal of achieving a profit is called a partnership firm. The legal document used to establish a partnership company registration is known as a partnership deed.

The Indian Partnership Registration Act of 1932 is the primary governing partnership registration law in India. A partnership, as defined by the law, is a union of individuals who have consented to divide the profits from a company that they all, or any of them, act for a banking business. A partnership can only have a maximum of 10 members, whereas, in other enterprises, it can have a maximum of 20 members.

While the partners are separate legal entities, partnership firms are not. A partnership company registration is not permitted to be a debtor, creditor, or property owner. According to the law, the assets, liabilities, and credit of a partnership registration firm belong to the partners. To prevent future misunderstandings, the partnership agreement must specifically state how profits and losses will be distributed among the partners. Each partner is allowed to conduct business on behalf of the others.

General partnerships have an optional registration process. If there are fewer than two partners after a partner’s death, incapacitation, or resignation, the partnership company registration will be dissolved.