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what is the minimum and maximum number of partners in a partnership firm?

Answers

Answered by nikitasingh79
1

The minimum and a maximum number of partners in a partnership firm are 2 and not more than 50.

Explanation:

Features of Partnership :

Two or More Persons:

Partnership Act 1932 specifies the minimum number of partners as two but is silent on the maximum number of partners according to section 464 of the Companies Act, 2013, with reference to Companies Miscellaneous Rules 2014, a maximum number of partners cannot exceed 50.

Agreement:

There must be agreement among partners. This agreement may be either in oral form or written form. However, if the partners want to get their firm registered under the Indian Partnership Act, the agreement should be in written form.

Lawful Business:

The agreement should be to carry on lawful business.

Mutual Agency:

Partners have a mutual agency relationship. Agency relationship means one person acting on behalf of another. It is known as Implied Authority.

Sharing of Profit:

Partners share the profit (loss also) of the business in the proportion agreed by them.

Unlimited Liability:

The partners have unlimited Liabilities, which means partners have an obligation to pay the debts of the firm individually and jointly.

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