A partnership is a type of business entity that is brought into existence by virtue of an agreement known as a Partnership Deed. In essence, a Deed is an agreement between the Partners on the entire business of the partnership. In India, a partnership business is governed by the Indian Partnership Firm Registration Act, 1932.
In India, anyone can form a Partnership Firm either by drafting a partnership deed/agreement in writing or just by Oral Agreement. Hence, as per law, it is not mandatory to have a Written Partnership Deed. Even registration is not mandatory. But Partnership Firm Registration is in order to avoid any conflict between the partners in the future, it is highly recommended to have a written agreement and get it registered.
Indian Partnership Act 1932 is that the governing law which regulates the partnership firms in India. As per the act “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”. The maximum number of members during a partnership is 10 for banking business and 20 for other businesses to enter into a partnership firm. Will get more information Regarding Partnership Firm Registration in this.
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