Q.What is the minimum number of members (partners) in a partnership business?

A partnership is the relation between two or more persons who agree to carry on a lawful business together and share its profits, as defined by the Indian Partnership Act, 1932. It arose to overcome the sole proprietor's weaknesses in raising capital, sharing risk and pooling managerial skill.

Core features:

• Formation through a legal agreement (oral or written) among partners.
• Unlimited liability that is joint and several — each partner can be held liable for the whole debt from personal assets.
• Shared risk, decision-making and control, generally by mutual consent.
• Lack of continuity — death, retirement, insolvency or insanity of a partner can end the firm.
• Mutual agency — every partner is both principal and agent, so one partner's act in the ordinary course of business binds all the others. …