The world of business in India is vibrant and intricate, shaped by various legal frameworks. The Indian Partnership Act of 1932 provides the foundation for forming partnerships, while the Limited Liability Partnership (LLP) Act of 2008 introduces a contemporary structure that blends the benefits of partnerships with those of companies.

In this post, we will explore the key aspects of the Indian Partnership Act, including its definition, nature, and the rights and duties of partners. We will also highlight the important features of the Limited Liability Partnership Act, offering insights that are essential for entrepreneurs and business enthusiasts.

Definition and Nature of Partnership

A partnership is fundamentally a relationship between two or more individuals who agree to share the profits from a business operated by all or any of them for their collective benefit. This framework is built on trust, shared goals, and mutual consent.

Key Aspects of Partnership

1. Voluntary Agreement: Partnerships arise from a mutual agreement, which can be either oral or written, outlining the terms of collaboration.

   
   

2. Profit Motive: The main goal of any partnership is to generate profit. For instance, in 2021, partnerships in India accounted for about 7% of total businesses, reflecting the profit-driven nature of partnerships.