Partnership

A partnership is a business structure in which two or more individuals (partners) agree to jointly carry on a business for profit, sharing ownership, management responsibilities, profits, and losses in accordance with a partnership deed or, in its absence, the provisions of the Indian Partnership Act, 1932. Partnerships are classified as general partnerships (where all partners have unlimited personal liability for the firm's debts) or Limited Liability Partnerships (LLPs — introduced under the LLP Act, 2008 — where partners' liability is limited to their agreed contribution). Unlike companies, partnerships are not separate legal entities under Indian law (except LLPs) and are taxed at the firm level at a flat rate of 30% plus surcharge and cess. For investors on Ventura Securities, the partnership structure is relevant when evaluating unlisted businesses (including broking firms and family enterprises that operate as partnerships or LLPs), analysing the governance and liability structure of professional service firms, and understanding the structural forms through which promoter families may hold interests in listed companies.