The partnership is the very widely used form of business entity registered in India. It is defined as the transparent blueprint of the relation between two or more individuals who have planned to harvest the profits from a business operated by all the members or any one taking the responsibility of one. All such firms are needed to be registered under The Indian Partnership Act, 1932.
The people involved in such business entity are called partners and can allocate any name to their collective business, which is considered as the firm name. Partnership firms create a platform that draws more business ideas in the business than a sole proprietorship. This type of business entity helps in creating a pool of financial resources and manpower leading to a good and transparent governance.