Partnership Firm

Partnership emerges out of the agreement between two or more partners wish to start a business. Partnership is defined as an agreement to share the profits or losses arising on account of business activity carried by all or one of them acting on behalf of all.
In India, Partnership business entity is governed by Indian Partnership Act 1932.
The owners of a partnership business are individually known as the “partners" and their business is collectively known as a “firm", which is necessarily their firm-name.
They sign a Partnership Deed, and at once the partnership firm comes into being, such a partnership firm will have its own name.
The partners in such a firm may be active partners and some others may be dormant partners.
The Indian Partnership Act, 1932 provides for the registration, but this is not compulsory. A Partnership Firm can be registered at any time at the option of the partners. However, registration of Partnership Firm confers certain rights to the registered business entity.