What is a Partnership Firm?
Qualifications for joining a Partnership Firm as a partner
- Any person who is above the prescribed legal age and is of sound mind.
- Any person who has the legal capacity to form a contract or agreement is eligible to join the partnership company.
- Hindu undivided families (HUFs) or Kartas are also eligible to join as partners in a partnership firm.
- A public or private limited company is regarded by Indian law as an artificial legal entity. Consequently, if permitted by an article, public or private limited businesses may join as a partner in a partnership firm.
- Trustees of religious trusts, family trusts, or any other religious endowments may be partners in a partnership firm unless and until expressly prohibited by the constitution.
Can a partnership firm join another firm as a designated partner?
Maximum and Minimum partners permitted in a Partnership Firm
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What are the types of Partnership Firms in India?
- Partnership at Will: In this type of partnership, there is no agreement or provision addressing how long the partnership would last. As a result, the partner may dissolve this type of partnership at any time.
- Fixed-term Partnership: In this case, the partners agree on a specific time frame for the arrangement. As a result, this style of partnership firm has a fixed duration of existence. The Partnership terminates at the end of the term as mutually agreed.
- Particular Partnership: A partnership is a type of entity created specifically for a given purpose or objective. The agreement specifies the type of business activities that will be conducted by the firm. The partnership is dissolved once the project or pre-determined activity is completed.
- General Partnership: This type of partnership firm is created to conduct business generically and has no specific scope or purpose.