A partnership is an arrangement where parties, known as partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations. Organizations may partner to increase the likelihood of each achieving their mission and to amplify their reach.
The following can enter into a partnership by law
A firm (which is recognized as a separate legal entity by law)
The main member (Karta) of a Hindu Undivided Family
Types of Partners
He is the one who is present in the workings of the partnership in every step. He plays the most crucial role and is majorly responsible for all the workings.
He is one who does not participate actively in the proceedings of the partnership. They are not known to the public. They work in the background.
He is a partner by name only. That is he plays no part in the workings of the firm. He is not interested in workings nor he shares the profit.
Partner in profits
He is when a partner is entitled to only the profits as agreed by all the other partners. He is not liable to any kind of losses.
He is one who is below eighteen years of age and is entitled to the benefits of the partnership only. There are restrictions like he cannot participate or intervene in the workings of the firm.
Generally, including silent partner. They don’t want to be known to the outside world. They sit back and work.