A Partnership Firm is a type of business arrangement where two or more individuals collaborate to run and manage a business based on the terms outlined in a Partnership Deed.
Formation: A partnership is established through an agreement called the Partnership Deed. This document specifies the terms of the partnership, such as the partners’ roles, duties, and how profits and losses will be shared among them.
Number of Partners: A partnership requires at least two partners to start. While there is usually no upper limit on the number of partners, specific laws and regulations may vary depending on the jurisdiction.
Legal Status: In most jurisdictions, a partnership firm is not treated as a separate legal entity from its partners. This means the partnership itself cannot own property or enter into contracts independently of the partners.
