One of the most significant types of company organization is a partnership. In a partnership firm, two or more people join forces to start a business and distribute the earnings equitably. Any type of business, trade, or profession falls under the umbrella of a partnership. Compared to corporations, a partnership firm is simpler to establish and requires less compliance.

In India, partnership firms are governed and regulated under the Indian Partnership Act, 1932. Partners are the people who join forces to form a partnership firm. A partnership agreement between the partners creates the partnership firm. The agreement between the partners, known as a partnership deed, governs their interactions with one another as well as with the partnership firm.

Compared to other business organization types, a partnership firm can be incorporated quickly. By creating the partnership deed and signing the partnership agreement, the partnership firm may be formed. There are no more documents necessary outside the partnership deed. Not even registration with the Registrar of Firms is required. As registration is optional and not required, a partnership firm may subsequently become incorporated and registered.

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