Partnership Firm - An Overview

In partnerships, the handling of operations is by partners who have agreed on the role and share in profits. The functions, duties, powers, and number of shares held are all clearly defined in a verbal contract known as the partnership deed. These businesses fall under the purview of the Indian Partnership Act of 1932.

Partnership firms can function with or without a license as long as they have a valid and registered partnership deed. However, most partnerships do register as it gives them additional rights and benefits. The eligibility criteria to form a partnership are:

1. Minimum of two and maximum of fewer than ten partners
2. Must have a registered office address within India
3. Must have a registered partnership deed signed by all partners.