A firm is a for profit organisation or a company that buys and sells products and/or services to consumers. According to Section 4 of Indian Partnership Act, 1932 Partnership is defined as an association or the relation between two or more person who has agreed to share profits of a business carried on by all or any of them acting for all. Person who are there in this association and are sharing profits are called partners. Each and every partner in a firm share the profits as well as the losses. The share for both profit and loss may differ according to the agreement between them. A partnership can be formed either orally or in writing. There are various advantages of partnership. Its formation is very easy, the operation in a partnership is very flexible, financial strength is increased in a partnership, there is reduction in risk etc. There are various types of partnership firm. They are as follows:
In this type of partnership, each partner has right to take decision about the working as well as management of the firm. Each partner has equal rights to represent the firm.
General partnership is further classified into two categories
Partnership at Will
A partnership at will is a type of partnership in which there is no fixed time period to dissolute the partnership. Any of the partner can dissolve the partnership at any time there will be no liability on that partner. There is no fixed time for the expiration of the partnership. There are two conditions that need to be fulfilled to become a Partnership at Will under section 7 of the Indian Partnership Act 1932. They are:
- There should be not any fixed expiration date in the partnership agreement.
- No particular determination of the partnership should be mentioned.
It is a type of partnership which is created with a specific aim or an objective. When the objective of the business is achieved or when the act for which the partnership is formed gets fulfilled this type of partnership gets dissolved. There are no fixed terms regarding how long the partnership will las as after accomplishing the goal or after the completion of the specific purpose the partner can either dissolve the partnership or can also continue the partnership.
2. Limited Liability Partnership (LLP)
LLP or Limited Liability Partnership is a kind of partnership in which the partners have limited liability.
3. Unregistered Partnership Firm
Any partnership firm which is not registered under the Partnership Act, 1932, is known as an unregistered partnership firm. The provisions of the Partnership Act, 1932 does not applies on an unregistered partnership firm as they are not registered under the Act. Under this firm no case can be filed against the third person.
4. Registered Partnership Firm
A partnership firm which is registered under the provisions of the Partnership Act, 1932, is known as a registered partnership firm. This firm is preferred over the other forms of partnership firms like the unregistered partnership firm because these firms carry the benefits which are mentioned in the Partnership Act, 1932.
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
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