In the words of Kimball and Kimball, "A partnership or firm as it is often called, is thus a group of men who have joined capital or services for the prosecuting of some business".

The persons who enter into partnership are collectively known as 'Firm'.

Under the Indian Majority Act, person who has not completed 18 years of age is a minor. However, he will continue to be a minor till he completes 21 years if a guardian has been appointed to the minor. He can be admitted to the benefits of partnership.
Partnership arises as a result of contract. But a minor has no contractual capacity. Though a partnership cannot be created with a minor as a partner, a minor can be admitted to the benefits of a partnership which is already in existence. The consent of all partners is a 'must' for such admission.

The Person who enters into the partnership are individually called Partners and collectively known as 'Firm'.

All the affairs of a Joint Hindu Family are controlled and managed by one person who is known as 'Karta' or 'Manager'. The Karta is the senior most male member of the family.

When a partnership is formed to carry on a particular venture or a business of temporary nature, it is called particular partnership. In other words, it comes to an end on the completion of the particular venture.

The liability of a sole trader is unlimited. Since, apart from his business assets, even his private properties are also available for satisfying the claims of creditors. Hence, creditors may give more loans because they can get back the loan from the personal properties of sole traders.

1. A secret partner is one whose association is not known to the general public.
2. Other than this distinct feature, he is like rest of the partners in all respects.

Though a partnership agreement need not necessarily be in writing, it is important to have a written agreement in order to avoid misunderstandings; it is desirable to have a written agreement. A carefully drafted partnership deed helps in ironing out differences which may develop among partners and in ensuring smooth running of the partnership business. It should be properly stamped and registered.

Implied Authority of Karta:
In a joint family firm, only Karta has the implied authority to enter into a contract for debts and pledge the property of the firm for the ordinary purpose of the businesses of the firm.
Minor also a co-parcener:
In a partnership, minor cannot become co-partner though he maybe admitted to the benefit of partnership. In a Joint Hindu Family firm even a new born baby can be a co-parceners.
Dissolution:
The Joint Hindu Family business can be dissolved only at the will of all the members of the family. Any single member has no right to get the business dissolved.

Partnership at will:
Partnership formed to carry on business for an undefined period is called partnership at will. It is to be dissolved when a partner gives notice of his intention to dissolve the partnership. Thus this type of partnership continues its business activities as long as there is mutual cooperation and confidence among partners. Since it comes to an end at the will of any partner on his giving notice, it is called partnership at will.
Partnership for a fixed term:
Where a partnership is formed. for a definite period of time, it is known as partnership for a fixed term. The partnership for a fixed term comes to an end on the expiry of the stipulated period. But if the business is continued even after the original fixed period, it automatically becomes a partnership at will. As such it will be terminated at the will of any partners, giving notice of his intention to do so.
Particular partnership:
When a partnership' is formed to carry on a particular venture or a business of temporary nature, it is called particular partnership. Such a firm lasts so long as the business agreed upon is not completed. In other words, it comes to an end on the completion of the particular venture. If such a firm is not dissolved and it begins
to undertake new activities not originally contemplated, the rights and obligations of the partners continue to be the same as in the original partnership and it will continue till a partner gives a notice of his intention to dissolve the firm.

(i) Partnership at will:
(1) Partnership formed to carry to Business for an undefined period is called Partnership at will.
(2) Thus this type of Partnership continues its business activities as long as there are mutual co-operation and confidence among partners.
(3) The partnership can be terminated if any other Partner notified his desire to quit.

(ii) Partnership for a fixed term:
(1) Where a Partnership is formed for a definite period of time, it is known as the partnership for a fixed term.
(2) The Partnership for a fixed term comes to an end on the expiry of the stipulated period.
(iii) Particular Partnership:
(1) When a Partnership is formed to carry on a Particular venture or a business of temporary nature, it is called particular Partnership.
(2) If automatically comes to an end with the expiry of the stipulated period of time.
(3) For Example: a Partnership may be created for one year only.
(iv) Limited Liability Partnership:
(1) Limited Liability Partnership is very popular in the Service sector and in the small-scale business enterprises
(2) Limited Liability Partnership means for paying the debts of the firm only the assets of the business will be utilized and not the personal properties.

Registration of Partnership:
The Indian Partnership Act does not make the registration of a partnership compulsory. Registration is optional. But the disabilities of non-registration virtually make it compulsory.
Procedure for Registration:
A statement should be prepared stating the following particulars.
(1) Name of the firm.
(2) The principal place of business.
(3) Name of other places where the firm carried on business.
(4) Names and addresses of all the partners.
(5) The date on which each partner joined the firm.
(6) The duration of the firm.
This statement signed by all the partners should be produced to the Registrar of Firms along with the necessary registration fee. Any change in the above particulars must be communicated to the Registrar within 14 days of such alteration.

Contents of Partnership Deed:
a) Name:
Name of the Firm.
b) Nature of Business:
Nature of the proposed business to, be carried on by the partners.
c) Duration of Partnership:
Duration of the partnership business whether it is to be run for a fixed period of time or whether it is to be dissolved after completing a particular venture.
d) Capital Contribution:
The capital is to be contributed by the partners. It must be remembered that capital contribution is not necessary to become a partner for one who contribute his organising power, business acumen, managerial skill, etc., instead of capital.
e) Withdrawal from the Firm:
The amount that can be withdrawn from the firm by each partner
f) Profit/Loss Sharing:
The ratio in which the profits or losses are to be shared. If the profit sharing ratio is not specified in the deed, all the partners must share the profits and bear the losses equally.
g) Interest on Capital:
Whether any interest is to be allowed on capital and if so, the rate of interest. If the deed is silent on interest on capital, the rules for interest on capital in partnership act will take effect.
h) Rate of Interest on Drawing:
Whether any interest is to be allowed on drawing, the rate of interest is to be specified.
i) Loan from Partners:
Whether loans can be accepted from the partners and if so the rate of interest payable there on.
j) Account Keeping:
Maintenance of accounts and audit.
k) Salary and Commission to Partners:
Amount of salary or commission payable to partners for their services. (Unless this is specifically provided, no partner is entitled to any salary).
l) Retirement:
Matters relating to retirement of a partner. The arrangement to be made for paying out the amount due to a retired or deceased partner must also be stated.
m) Goodwill Valuation:
Method of valuing goodwill on the admission, death or retirement of a partner.
n) Distribution of Responsibility:
The work that is entrusted to each partner is better stated in the deed itself.
o) Dissolution Procedure:
Procedure for dissolution of the firm and the mode of settlement of accounts thereafter.
p) Arbitration of Dispute:
Arbitration in case of disputes among partners. The deed should provide the method for settling disputes or difference of opinion. This clause will avoid costly litigations.