A partnership company

A partnership company is a business structure recognized under the Indian Company Act 2013, in which two or more individuals, known as partners, come together to carry on a business with the goal of earning a profit.

In a partnership company, the partners share the profits and losses of the business in the ratio agreed upon between them. This ratio is known as the profit-sharing ratio and is typically outlined in the partnership agreement.

The Indian Company Act 2013 requires that every partnership company must be registered with the Registrar of Companies (ROC) and must have a minimum of two partners. The Act also requires that the partner company must have a registered office, and must file annual returns with the ROC.

The Act also lays down the rights and duties of the partners and governs the internal management of the partnership company, such as the admission of new partners, the rights of partners to access and inspect the books of account, and the rules for the dissolution of the partnership company.

In terms of liabilities, the partners of a partnership company are jointly and severally liable for the debts of the partnership company. This means that each partner is individually liable for the entire debt of the partnership company, and a creditor can recover the entire debt from any one of the partners.

Overall, a Partnership company is a popular form of business organization in India and is regulated by the Indian Company Act 2013, which lays down the regulations for the registration, management and dissolution of the partnership company.