1.
 DEFINITION
According to section 4 of the partnership
act 1932, “partnership is defined as the relation
between two or more persons who have agreed
to share the profit with according to their ratio
of business run by all or any one of them
acting for all.”

2.
 Agreement
 Association of two or more persons
 Sharing of profits
 Business
 Relation between parties
 Minimum 2, maximum 20 partners

3.
 Formed by oral or written agreement.
 All essential of valid contract be present.
 Mutual rights and obligation to be in the partnership
Deed.
 The Deed to be registered.

4.
 It is a written agreement which contains
terms and conditions as to the relationship of
the partners among each other.

5.
 Name of the parties
 Nature of business
 Duration of partnership
 Name of the firm
 Capital
 Share of partners in profits and losses

6.
 Banking, account firm
 Books of accounts
 Powers of partners
 Retirement and death of partners
 Dissolution of firm
 Settlement of disputes

7.
 Not compulsory
 Time of registration
 Procedure for registration
 Change of particulars
 Effects of non registration

8.
 Sending by post/delivering to the registrar of firms of the area a statement
in the prescribed from and accompanied by the prescribed fee
 Signed by all partners/agents
 Following to be in the application:
◦ The firm name
◦ The place or principal place of business of the firm;
◦ The name of any other places where the firm carries on the business
◦ The date when each partner joined the firm
◦ The names in full and permanent addresses of the parties ; and
◦ The duration of the firm

9.
 No suit in a civil court by a partner against
the firm or co partner
 No suit in civil court against third parties
 Firm or partners can not make claim to set off
other proceeding based upon a contract
 Registration of firms from IT is different from
the above registration. For the purpose of
assessment under IT separate registration
with IT is required.