In India, Partnership Act, 1932 lays down the definition and regulations for Partnership Firm and the provisions of this act (under section 4) defines partnership as – “An agreement between persons who have agreed to share profits of the carried on by all or any one of them acting for all.”

When two or more persons have the same business idea and they wish to work together to turn that idea into reality, they get into partnership by incorporating a partnership firm. So, Partnership is combined ownership of a business between two or more people. Like a sole proprietorship, there is no legal separation between the business and the individual partners. The partnership is formed by an agreement among the partners in which all the terms of partnership is discussed.

The Registration of a partnership firm is not compulsory, though it is usually done as registration brings many advantages to the firm. It is optional for partners to set the firm registered & there are no penalties for non-registration but it is always advisable to get the registration done as it bestows a legal existence and avoid conflicts in future. Partnership Registration is done on their respective state websites.
LLP is one of the easiest types of businesses to incorporate & manage and it integrates the advantages of a Partnership Firm and a Company.