Partnership in the Corporate world refers to a relationship when two or more people who decide to share the profits & losses of a business carried on by them, all or any of them acting for all. The percentage of ownership depends on certain factors as decided with mutual consent of the partners. Partnership firm thus is a firm which allows joint ownership of a business. There are certain rules and regulations that have to be followed while setting up a Partnership firm.
Registering a partnership firm is not compulsory under the Indian Partnership Act, 1932 however, a partnership firm can be registered under Section 58 of the Indian Partnership Act at any point of time, even subsequent to the formation. The registration of a partnership firm is done through the Registrar of Firm in which state the partnership firm is situated. When the Registrar of Firms is satisfied that the provisions of Section 58 are complied with, a record of entry of the statement is made in the Register of Firms and Certificate of Registration is issued in the name of the Partnership Firm.