The partnership type of incorporation is simply a partnership between two or more owners with one common goal, which in most cases is profits. Similar to Sole Proprietorship, a partnership is not a separate entity and hence, not necessary to register this type of firm. However, getting your firm incorporated as a partnership has its added advantages.
Indian Partnership Act 1932 is the governing law that regulates partnership firms in India. As per the act, “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.”
Though essentially Partnership firm entails no mandatory registration, firms often register themselves for the safe bubble it provides. If you still plan to go for a partnership registration, these are some of the documents that you must keep handy with you.
If a firm's partners choose to discontinue their partnership, they can do so by dissolving it by notice if it is a willful partnership. A partnership can be dissolved either according to the conditions of the Partnership Deed or by entering into a separate agreement. You can also convert it into an LLP, but the firm should be registered as a partnership, and the LLP partners should be the same as a partnership firm. The Ministry of Corporate Affairs permits converting a Partnership Firm into Company under the Companies Act, 2013.