What is a Partnership Firm?
A partnership firm is a business form in which two or more individuals manage and operate a business in accordance with the terms and objectives set in a Partnership Deed. This may or may not be registered.
Is there any limit on the number of Partners?
A partnership must have at least two partners. A partnership firm in the banking business can have up to 10 partners, while those engaged in any other business can have 20 partners.
Do I need to get firm registration done?
No, registration of a partnership is not necessary. However, for a partner to lodge a complaint or sue another partner or the firm itself, the partnership should be registered. Moreover, for the partnership to bring any suit to court, the firm should be registered. For small or family businesses, it is fine if a firm is not registered.
Can one deal with one of the partners of a Partnership Firm?
Yes. The law presumes that each partner is an agent of the other and dealing in good faith with one partner binds the other partners as well.
Is the firm liable for the wrongful act of one partner?
Yes. The firm and all the partners are liable for the wrongful act or fraud which causes loss or injury to any third parties.
What is Partnership at will?
When the partnership deed does not contain any provision for the duration of the partnership nor conditions for the termination of the partnership, it is a partnership at will.