Partnership Act of India 1932 has several measures that revolutionized the business which were following the Indian Contract Act of 1872.
This defines the partnership as a business carried on by all or any one of them for all.
Elements of Patnership
Important elements of partnership are :
(1) Association of 2 or more persons
(2) Existence of contract
(3) Carrying on a business
(4) Sharing of Profits
(5) Mutual Agency
A parnership firm cannot create another partnership firm as they cannot enjoy the legal person in action. Ther must exist a contract between the partners.
Partnership deed is the document that deals with the rights and obligations of the partnership. It not only contains the information about the name, contact of the business firm but also the time period of the partnership, profit sharing ratio, type of business etc.
Registratino of Firm
Business registration is very important in running a business. Registration of a company is very important as there are many provisions in the company registration. If a company is not registered then there is
* No suit against the partners
* No suit against third parties
* No suit of set off
Types of Partnership
Following are the important types of partnerships.
* Active or actual partnership
* Dormant or sleeping partnership
* Nominal partnership
* Sub partnership
* Partnership in profit only
In this type of partnership the partners are actively involved in the business and business relations and other aspects of the partnership firms.
In a dormant or a sleeping partnership, the partner will lend his name to the business but neither interested in the business nor the profit sharing from the business.
These type of partners are known to the outsiders only. They will not actually involve in the business.
If a partner wants to share his profits to others he can enter into the partnership with others stating the profit sharing levels or ratio. This is sometime referred to as parnership marketing.
Partnership in Profit only
Partners who does not like loss bearing can enter into partnership sharing only the profit. Such a parnership is called as partnership in profit only.
For such a resource. I am from BCOM background.So, i know that patnership is important part of business. After seeing and reading the articles. All the rules of partnership are recall back.
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