1. Shared Responsibility In a partnership, business duties are divided among partners The workload is shared, reducing individual pressure Partners can focus on their strengths and areas of expertise Responsibilities are managed more efficiently through coordination...

1. Unlimited Liability Partners are personally liable for the debts of the firm Personal assets can be used to repay business obligations All partners are jointly and individually responsible for liabilities Losses are not limited to capital contributions Financial...

1. Dissolution by Mutual Agreement Partners can dissolve the firm voluntarily by mutual consent A written agreement is preferred for legal clarity and proof All partners must agree to close the business and settle affairs The dissolution terms should be recorded in...

1. Based on Partnership Deed Provisions The partnership deed may contain a clause for the removal of a partner The procedure and grounds for removal must be clearly mentioned Removal must follow the method agreed upon in the deed All partners must comply with the...

1. Legal Validity of Unregistered Partnership An unregistered partnership is still legally valid in India. It can carry out business operations like any other firm. The Indian Partnership Act, 1932, does not make registration compulsory. Partners can form and operate...

1. Preparation Before Registration Choose a unique name for the partnership firm. Draft a partnership deed signed by all partners. Ensure the deed includes business details, capital, and roles. Arrange for stamp paper of appropriate value as per state laws. Notarize...

1. Legal Recognition of Companies as Partners A company is recognized as an artificial legal person.n It can enter into contracts, own property, and sue or be sued. Indian law permits a company to become a partner in a firm. The company's participation must align with...

1. General Rule Under Indian Law The Indian Partnership Act, 1932, does not fix a maximum limit.t The Companies Act, 2013 prescribes partner limits for regulation.n Section 464 of the Companies Act governs the maximum partner's ru.le. It applies to firms that are not...

1. Tax Identity of a Partnership Firm A partnership firm is treated as a separate taxable entity for income purposes. It must obtain a Permanent Account Number from the income authorities. The firm files its return of income, distinct from individual partners. Tax...

1. Registered Partnership Firm A registered partnership firm is officially recorded under the Indian Partnership Act, 1932. Registration is done with the Registrar of Firms in the respective state. A partnership deed is submitted along with prescribed forms and fees....