Partnership means agreement between two or more persons. They agree to share there profit and loss equally or whatever they wants. In partnership all of them can work or any of one working for all.
There are three kinds of partnership which are as under:
(1) Partnership at will
(2) Particular partnership
(3) limited partnership
1. Partnership At Will
If the partnership is formed for an undefined time, it is called partnership at will. Any partner can dissolve it at any time, by giving the notice.
According to partnership act 1932 " If no provision is made in the agreement regarding the partnership, it is called partnership at will"
Partnership at will may be created under the following circumstances:
(1) If partnership has formed for an indefinite period, it is called partnership at will.
(2) If partnership has been formed for a particular venture and after completing such venture it remains continuing, it becomes a partnership at will.
(3) If partnership has been formed for a definite time period, so after the expiry of this period, it becomes partnership at will.
2. Particular Partnership
If the partnership is formed for a particular object of temporary nature, it is called particular partnership. On the completion of a particular venture, it comes to an end under this no regular business is done.
Examples:
Partnership for the construction of a building
partnership for producing a film
3. Limited Partnership
Limited partnership is that in which liabilities of some partners are limited up to the amount of their capitals in this partnership, there is at least one partner who have unlimited liability and there is separate partnership act for it.
Some main Features Of Limited Partnership
(1) There is at least one partner who has limited liability.
(2) There is at least one partner who has unlimited liability.
(3) There are at least two partners or maximum 20 in an ordinary business and not more than 10 in banking business.
(4) New partners may be admitted in this partnership without consent of limited partners but with the consent of unlimited partners.
(5) The registration of this partnership is compulsory by law.
(6) Limited partner can transfer his share to any other person with the consent of all other partners.
(7) Limited partner has a right to inspect the books of accounts.
(8) Limited partner has a right to give suggestions to others who manage the business.
(9) A limited partner cannot take part in the management of the business.
(10) A limited partner control withdraw his capital until he remains in partnership business.
(11) It is enrolled under the limited partnership act 1907 instead of partnership act 1931.
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