A Partnership business is one of the most important forms of a business organization. A partnership firm in which two or more persons come together to form a business and divide their profits sharing ratio. The partnership business includes any kind of trade, occupation or profession. A partnership firm is easy to form with fewer compliances as compared to companies formation.The Indian Act 1932 governs and regulates partnership firms in India. The persons who came together to form the partnership firm are knowns as partners. The partnership firm is constituted under a contract between all the partners. The contract between the partners is also known as a partnership deed which regulates the relationship among the partners and also between the partners and the partnership firm.