Partnership Firm

A partnership firm registration represents a business venture initiated by two or more partners with the objective of generating profits. Opting for partnership firm registration comes with numerous advantages. The formal agreement used to establish such a partnership is commonly referred to as a partnership deed. In India, the Indian Partnership Registration Act of 1932 serves as the primary governing law for partnership registration. According to this law, a partnership is a collaborative effort among individuals who agree to share profits from a jointly operated business, particularly in the banking sector. While a partnership firm registration can have a maximum of 10 members, other types of enterprises are allowed to have up to 20 members.

Despite the partners in a partnership firm being recognized as distinct legal entities, the firm itself lacks a separate legal identity. As a result, it cannot act as a debtor, creditor, or property owner. As per the law, the assets, liabilities, and credit of a partnership registration firm are attributed to the partners. To avoid potential misunderstandings, the partnership agreement must explicitly specify how profits and losses will be distributed among the partners. Additionally, each partner is authorized to act on behalf of the others in conducting business.