No, it is not necessary. As the contract act does not makes it necessary to have the agreement in writing. However, it is always prudent to make a partnership deed to produce to the bank, income tax authorities and to clients with whom the partnership firm deals with. Apart from serving as a reference document a written partnership deed also helps in reducing conflict and confusion in due course of time.

Yes. A partnership firm can sue or be sued in its own name. The firm is treated separately from its partners. However, the partners do not enjoy limited liability as available in case of LLP or a company. In a situation where the firm is not in a position to discharge its liabilities, the partners shall be called in to pay the liabilities of the firm.

Yes. A person may become a partner with another for a single adventure or undertaking. The term of partnership firm can be for a specific period or for the completion of a specific project or at will. The deed must have a specific mention about the tenure of the partnership agreement. The Even partnership which is created for a specific purpose can be closed before the term with the consent of all the partners.

Yes. Unlike other incorporated business forms, you are personally liable for any of your sole proprietorship’s debts or legal judgments against your business. This means that in order to satisfy debts owed by your business, debt collectors can come after your personal assets, homes, cars, etc. For this reason, alone, you should be extremely cautious about setting up a sole proprietorship.

Yes. The law presumes that each partner is an agent of the other and while dealing with third parties the partner is representing the partnership firm in good faith. The acts done by one partner is binding on another even if it is not in the knowledge of the other party.

Three elements are necessary to form a partnership: There must be an agreement between two or more persons, The agreement must be to share the profits of the business, All partners together, or any one, on behalf of the others must carry on the business.

The Partnership Act does not prohibit a non-citizen from joining an Indian partnership firm, subject to necessary clearances and permissions from satisfactory authorities in this regard.

Capital is the initial amount in cash or kind contributed by the partners to start the business. It is not necessary for each partner to contribute equally to the capital. Contribution is based on the agreement between the parties.

Partners must be major (above the age of 18), should be sane and should not be disqualified by law from entering into a contract.

The following are the rights of a partner: To take part in the business, To share the profit or loss of the business, To inspect and make copies of the books of the firm, To receive remuneration for taking part in the business if specified in the partnership deed, To receive interest on capital if specified in the partnership deed.

Your duties as a partner are to: carry on the business, be just and faithful to each partner, disclose true accounts of the firm, furnish full information of all things affecting the firm.

As a partner you cannot do the following without the consent of the other partners: Submit a dispute relating to the business to arbitration. , Open a bank account on behalf of the firm in your own name, Compromise or relinquish any claim or portion of a claim of the firm, Withdraw a suit or proceeding filed on behalf of the firm, Enter into partnership with an outsider on behalf of the firm, Acquire or transfer immovable property belonging to the firm, Admit any liability in a suit or proceeding against the firm.