A Partnership is considered as the form of Business Structure in which two or more individuals manage and operate a business in accordance with the terms and goals set out in the Partnership Deed. divide the profits thereof in an agreed ratio. A Partnership Form of Business is relatively easy for medium sized Business the cost compliance is minimal as compared to other Business Structure.

For Partnership Registration, Partners agree on a firm name and then establish a partnership deed with the help of legal consultant. It is a document stating respective rights and obligations of the partners and to be valid it should be written and not oral.

The partnership is relatively easy to start however, there are certain conditions and restrictions to be followed in setting them up. Also, according to Indian Partnership Act,1932, consent of all the partners in a partnership firm is required in fundamental matters (like admission of new partners, dissolution of the firm, conversion of the firm etc.) and a majority in other matters and there should be sharing of all the profits or losses made in the business. It also states that there has to be a legal contract that There are certainly more rules while setting up a Partnership firm, clearly stated in the Indian Partnership act,1932 and they should be followed strictly to avoid any severe actions made by authorities towards your firm.