Partnership firm is one of the most important forms of
business organisation. A partnership firm is an organisation
in which two or more people unite to form a business and
divide the profits according to an agreement. Partnership firm
includes a variety of businesses, occupations and
professions. Partnership firms have fewer compliances than
companies and are easier to form.
The Indian Partnership Act, 1932 governs and regulates
partnership firms across India. The persons who come
together to form a partnership firm are called partners. A
partnership is established on the basis of a contract between
the partners. The contract between the partners is known as
the partnership deed which governs the relationship between
the partners and the partnership firm.