Understanding Partnership Firms in India

Wiki Article

A partnership firm, also known as a partnership, stands out as the most prevalent form of business organization in India. Forming a partnership firm involves at least two individuals who agree to share profits and losses. These partners pool their resources the firm's operations, and each partner contributes to the shared objectives.

Under Indian law, partnership firms are governed by the {Indian a partnership firm in India Partnership Act, 1932|the Act of 1932|. This act meticulously defines the responsibilities and obligations of partners and establishes several guidelines for establishment, management, and closure.