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Thus as per the above definition, there are 5 elements which constitute of a partnership namely: (1) There must be a contract; (2) between two or more persons; (3) who agree to carry on a business; (4) with the object of sharing profits and (5) the business must be carried on by all or any of them acting for all.

The procedure for such a registration is as follows, Application to the Registrar of Firms in the prescribed form (Form A). ... The duly signed copy of the Partnership Deed (which contains all the terms and conditions) must be filled with the registrar. Deposit/pay the necessary fees and stamp duties.

Mutuality: A common purpose with mutual benefit. Commitment: Parties are prepared to commit resources to the mutual endeavour. Clarity: Each party is clear about who is doing what. Openness: Both parties are prepared to raise issues concerning the quality of the working relationship.

A general partnership is the most common type of partnership. It refers to a relationship in which all partners contribute to the day-to-day management of the business.

As is the case with a sole proprietorship, a partnership is considered a pass-through entity for tax purposes. In other words, the partnership itself is not taxed, but each partner is responsible for reporting their own profits and losses from the business on their individual tax returns.

The laws of individual countries vary, but, broadly speaking, there are four major types of partnership agreements in the United States: General partnerships. ... Limited partnerships. ... Limited liability partnerships. ... Limited liability limited partnerships.