Glossary
Partnership Firm
Partnership Firm
A Partnership Firm is a business structure where two or more individuals agree to share the profits and losses of a business carried on by all or any of them acting for all, with each partner holding unlimited personal liability.
Where it appears in practice
It is commonly used by traditional family businesses or small joint ventures where partners trust each other implicitly, though it lacks the limited liability protection offered by modern structures like LLPs.
A worked example
Two friends open a hardware store. They draft a partnership deed specifying a 50:50 [VERIFY] profit-sharing ratio. If the business fails, both partners are personally liable to pay off the firm's creditors.
Related terms
- Proprietorship
- LLP
- Partnership Deed
Let the practice handle it
This term sits inside real compliance work — returns, filings, and deadlines. That work is one of the services the practice runs end to end.
Entity Formation