What is a Partnership Firm? A partnership firm is an organization which is formed with two or more persons to run a business with a view to earn profit. Each member of such a group is known as a partner and collectively known as a partnership firm. These firms are governed by the Indian Partnership Act, 1932. Following are the characteristics of Partnership Firm.
1. Number of Partners : Minimum number of people required to start a partnership firm is two and maximum limit is 10 in case of banking business and 20 in case of all other types of business.