Partnerships in India can be classified on the basis of Duration and Liability of the partners. The types of partnership found in India are :
Partnerships on basis of duration :
Partnership at will.
In this type of partnership, the partners do not decide the time duration of the partnership. The partnership exists at the will of the partners. If any partner no longer willing to be in partnership may leave, with it the partnership ends.
In such a partnership the partners have already decided for how long their partnership will exist. Usually, this partnership comes into existence to achieve a common objective or goal.
Partnership on the basis of liability :
This partnership is common that we all know about, where the liabilities of the partners is unlimited and joint, partners are entitled to participate in management, registration of partnership is not mandatory and partnership is affected by death,insolvency or lunacy of the partners.
Limited partnerships are not common. In these partnerships partners have limited liability except one or more General Partner(s) who have unlimited liability. The General Partner(s) is only entitled to manage the business. Death, insolvency, or lunacy of the limited partners doe not effect the existence of partnership. Such partnerships must be registered. Limited partnerships were allowed in India from the year 1991.
Limited Liability Partnership.
LLP, the modern form a partnership is a hybrid of both a company and a partnership. LLP came in India in the year 2008 with the LLP act. In LLP, the partners have limited liability with separate legal entity. LLP are required to register themselves. LLP combines the features of a company into the partnership.
We at LegalRaasta register all types of partnership online. You can register partnership by providing us your details and required documents here.