There are different forms of business organizations and a partnership firm is one among such organizations. Partnership is the relationship between two or more persons who have agreed to share the profits of the business carried on by all or any one or more of them acting for all.
The following are the characteristics or features of any partnership firm:
1. Contract: It is formed on voluntary basis by means of an agreement agreed between two or more persons carrying on a particular business for any common benefit. It may also be formed to carry on certain trade, profession or lawful occupation.
2. Age limit: Only persons who have attained the major status can become partners. In other words, minors cannot also become partners.
3. A partnership deed: It is formally based upon an agreement called as partnership deed and the deed provides the details about the members; the amount invested by the partners as shares; the rights and duties of the partners; proportion for sharing profits and losses gained or lost in business by each partners etc.
4. Registration: The registration of a partnership is voluntary and it may or may not be registered.
5. Joint-ownership: The partners are joint owners of the property of the firm and its property must be used only for the business purpose for which the partnership was formed. The firm cannot be utilized for the personal benefit of any partner in the firm.
6. Joint management: All the partners of the firm have equal rights when it comes to management of the firm and as such every partner can participate in the management; however, for the sake of convenience, single partner may be given right to manage the firm.
7. No remuneration: No remuneration is paid to any partner for services rendered by him to the firm. Each partner is supposed to work in the best possible manner for promoting the interest of the firm.
8. Statutory limit or number of partners: It