!! BUSINESS PARTNERSHIP !!

PRESENTED BY :

PALAK KATTA SHIVAM KARWA DHADKAN ARORA

 PARTNERSHIP

A partnership is an arrangement where parties ,agree to

cooperate to advance their mutual interests. The partners in a
partnership may be individuals , businesses, interest – based
organizations,
schools, governments or combinations.
How partnership
works???
FORMATION
LIABILITY
MEMBERSHIP
CONTINUITY
DECISION MAKING AND CONTROL
TYPES OF
PARTNERS
ACTIVE PARTNER

NOMINAL PARTNER

PARTNER BY HOLDING OUT

 TYPES OF PARTNERSHIP

On the basis of duration On the basis of liability

Partnership at Particular General Limited

will partnership partnership partnership
ON THE BASIS of Duration

1. PARTNERSHIP AT WILL : This type of partnership exit at the will of partners.

It can continue as long as partners want and the
partnership is terminated when any partner gives
notice of withdrawal from the partnership firm.

2. PARTICULAR PARTNERSHIP : Partnership that is formed for the fulfilment

for a particular project.
E.g. : partnership done for construction of a
building or any activity that is carried for a
specific time period or for a specific purpose.
ON THE BASIS OF LIABILITY
1. GENERAL PARTNERSHIP : A general partnership is an arrangement by which
partners conducting a business jointly have unlimited
liability , which means their personal assets are liable to
the partnership obligations.

2 . LIMITED PARTNERSHIP : A limited partnership is a partnership consisting of a

general partner , who manages the business and has
unlimited personal liability for the debts and obligations
of the limited partnership , and a limited partner who has
limited liability but cannot participate in management.
 DEED
A PARTNERSHIP IS FORMED BY AN AGREEMENT . THIS AGREEMENT MAY BE ORAL OR IN WRITING . THOUGH THE
LAW DOESN’T EXPRESSLY REQUIRE THAT THE PARTNERSHIP AGREEMENT BE IN WRITING , IT IS DESIRABLE TO HAVE
IT IN WRITING SO THAT IN CASE OF A DISPUTE AMONG THE PARTNERS , IT MAY BE READILY REFERRED TO.

A document which contains the terms of partnership as agreed among the partners is
called as ‘partnership deed’.
A partnership deed usually includes the following particulars or
aspects -
 Name and Address of the firm
 Names and Address of all partners
 Duration of business
 Amount of capital to be contributed by each partners
 The date of commencement of partnership
 Rules regarding operations of bank accounts
 Profit and loss sharing ratio
 Rate of interest on capital , loan , drawings, etc.
 Mode of auditors appointment ,if any
 Salaries , commission , etc. , if payable to any partner
 Procedure of dissolution of the firm
 Methods of solving disputes
 IS REGISTRATION IMPORTANT FOR
PARTNERSHIP or NOT ?
Registration of a partnership firm means the entering of the firms name , along with relevant prescribed
particulars, in the Registrar of firms kept with the Registrar of firms. It provides conclusive proof of the
existence of a partnership firm.

It is optional for the firm to get registered. In case a firm does not get registered , it
is deprived of many benefits. The consequences of non-registration of a firm are
as follows:
o A partner of an unregistered firm cant file a suit against the firm or other
partners,
o The firm cant file suit against third parties
CONCLUSION