A partnership firm registration is a business venture established by two or more partners with the aim of generating profits. Registering as a partnership firm brings several advantages. The legal document utilized to formalize such a partnership is known as a partnership deed. In India, the primary governing law for partnership registration is the Indian Partnership Registration Act of 1932. As per this law, a partnership is a collective effort of individuals who agree to share profits from a company they jointly operate, particularly in banking business. A partnership firm registration is limited to a maximum of 10 members, whereas other types of enterprises can have up to 20 members.

Although the partners in a partnership firm are distinct legal entities, the firm itself does not hold a separate legal identity. It cannot be a debtor, creditor, or property owner. According to the law, the assets, liabilities, and credit of a partnership registration firm belong to the partners. To avoid any potential misunderstandings, the partnership agreement must clearly stipulate how profits and losses will be distributed among the partners. Additionally, each partner is empowered to act on behalf of the others in conducting business.