What is Partnership Firm?
A Partnership Firm is a type of business where two or more people come together to run a company and share the profits. These people are called partners, and they agree on how to manage the business, divide the work, and split the earnings. Everything is usually written down in a partnership agreement.
In a partnership firm, all partners share the responsibilities, losses, and risks of the business. This means if the business owes money or faces a problem, the partners may have to pay from their personal money. Unlike a company, a partnership firm is not a separate legal entity — the business and the partners are legally the same.
Partnership firms are simple to start, easy to manage, and work well for small businesses like shops, agencies, and service providers where trust and teamwork are important.