what are the different ways in which a partur
from the firm as per section 32 of
partraship Act 1932?
Answers
Explanation:
Partnership is created when two or more individuals decide to come together and start a business or a venture by contributing assets in form of investments. This said arrangement is exclusively created with an aim to make profit. These individuals are called partners and the business venture is collectively called as a partnership firm.
Partnership Act, 1932 defines the structure of a Partnership firm by providing all the necessary provisions to run the same. Further, the business operations, share of profits or loss and investments are primarily directed by the
Types of Partnerships in India
The most used partnership types are listed here with their distinct features to allow you choosing the suitable type.
General Partnership:
In this type of partnership, each partner has right to take decision about the working and management of the firm. Downside being that the partner’s liability is unlimited and in case of a financial error / loss incurred by the act of a single partner the personal assets of all the partners can be taken away to pay back the debts and creditors’ claims.
General partnership is further bifurcated into two categories:
1. Partnership at will:
Usually when a partnership is created, it is upon the partners to decide till when they want the partnership to exist. Hence, whenever a partnership is created without a specific time limit of its closure, its termed as partnership at will. .
2. Particular partnerships:
This is the type of partnership that is created with an aim to carry out a specific undertaking. When partnership is created for a project of a temporary contract-based work or a specific business only, they are termed as particular partnerships.
Limited Liability Partnership (LLP):
A limited partnership unlike general partnership is a corporate form of business organization. Here, the liabilities are limited to each partner according to their agreed contribution to the business. The personal property of a partner cannot be attached to pay back the firms debts. This hybrid organization is governed under the Limited Liability Partnership Act, 2008 and not under Partnership Act