According to Sec 4 of the Partnership Act 1932, “Partnership is the relation between 2 or more persons who have agreed to share profits or losses of a business carried on by all or any them acting for all”.
Persons who have entered into a partnership with one another are called individually ‘Partner’ and collectively a ‘firm’
A Partnership Firm is a business entity that is controlled by an association of people. The sole purpose of forming a partnership firm is to make profits. In a partnership firm, the partners share the liability of profit and loss of the company. Indian Partnership Act 1932 is the law that governs the partnership firm in India.
A partnership deed is an agreement between the partners in a partnership firm which states the rights, duties, profits, shares and other obligations of each partner.