A Partnership Firm is a business entity formed with a purpose of making profit from the business by two or more parties combined and with a formal legal agreement called Partnership Deed. In a partnership firm risks, responsibilities and even the profit or loss would be shared in an agreed proportion to the parties involved (partners) in the business. While two or more parties’ combines together to form a partnership, the expertise and capabilities of each party and more capital combined hence to take business to success. 
Any registered or unregistered partnerships in India are protected by Partnership Act 1932. The act defines the structure of a partnership firm by providing all the necessary provisions to run the same. An unregistered partnership has a few shortcomings in the protection of Partnership Act 1932, it can overcome by registering firm any timeonce the partnership deed is executed.
