Types of Partnership Firms in India: General vs. Limited Partnerships
Types of Partnership Firms in India: General vs. Limited Partnerships Partnership firms are a popular business structure in India, especially among small and medium enterprises. They offer flexibility, ease of formation, and shared responsibility among partners. If you're considering starting a partnership firm in India, it's crucial to understand the different types of partnership structures available. In India, partnership firms are primarily classified into General Partnerships and Limited Partnerships . Let's explore their key differences, advantages, and which one might be suitable for your business. 1. General Partnership A General Partnership is the most common type of partnership firm in India, governed by the Indian Partnership Act, 1932. In this structure, two or more individuals come together to conduct business with a shared responsibility for profits, losses, and liabilities. Key Features of a General Partnership: Unlimited Liability: Each partner is persona...