Persons who have entered into partnership with one another are called individually "partners" and collectively a "firm", and the name under which their business is carried on is called the "firm name".
Some advantages of partnership over private limited company include ease of establishment and lower costs. A partnership consists of two or more individuals who own a business together and share all its profits and losses, as well as the right to manage and make decisions on behalf of the business.
A partnership is a kind of business where a formal agreement between two or more people is made who agree to be the co-owners, distribute responsibilities for managing an organization and communicate the income or failures that the firm creates. The aim of partnership firm is to turn a profit at maximum level.
The main features are as below:
• Sharing of profits and losses.
• Mutual agency.
• Unlimited liability.
• Lawful business.
• Contractual relationship.
Partners continue the business for any length of time-based on their desires. It can continue for as long as the partners desire and is dissolved when a partner gives notice of withdrawal to the firm. It will continue until the partners develop mutual trust.