Introduction In a partnership firm, partners may receive various types of compensation, including a share of profits, interest on capital, and salary or remuneration for actively participating in business operations. While the firm's profits are taxed at the entity...

Introduction The Indian Partnership Act, 1932 is a foundational statute that governs partnership firms in India, laying out the legal framework for their formation, functioning, rights, duties of partners, and dissolution. Over the decades, India’s economic landscape,...

Introduction In a partnership firm, partners often take collective responsibility for the financial health of the business. When the firm faces cash flow constraints or urgent liabilities, a partner may use personal funds to repay a business loan. This act of loan...

Introduction In any business, including a partnership firm, working capital plays a vital role in ensuring day-to-day operations run smoothly. It represents the firm’s short-term financial health and ability to meet its operational needs. For a partnership, where two...

Introduction Merging two partnership firms is a strategic decision often taken to consolidate resources, expand market presence, increase operational efficiency, or eliminate competition. A merger results in the formation of a single partnership firm, either by...

Introduction In a partnership firm, partners often incur expenses while carrying out business operations on behalf of the firm. These expenses may include travel costs, client meeting expenditures, office supplies, legal fees, utility payments, or emergency purchases....

Introduction Investing in property is a strategic move for partnership firms, often aimed at expanding business infrastructure, generating rental income, or diversifying investment portfolios. Unlike individuals or corporations, partnership firms are governed by the...

Introduction Governance in a partnership firm refers to the system of rules, practices, and processes by which the partnership is directed and controlled. Unlike corporations that follow a hierarchical management structure guided by shareholders and boards,...

Introduction In a partnership firm, each partner is expected to fulfill their duties and obligations as outlined in the partnership deed and under the Indian Partnership Act, 1932. However, disputes or misconduct may arise when a partner fails to meet their...

Introduction In India, start-up recognition under the Startup India initiative by the Department for Promotion of Industry and Internal Trade (DPIIT) offers a host of benefits to eligible entities, including partnership firms registered under the Indian Partnership...