Partnership can be defined as an agreement where two or more persons agree to share the profits of business done by them. Given below are the various features of partnership –
1. Partnership is an association of 2 or more persons, in other words it cannot be started alone by an individual, and if it is done it is called sole proprietorship and not partnership.
2. Partnership is done for the purpose of carrying on any lawful business; partnership comes into existence by an agreement between the partners.
3. The business for which partnership is done can be carried on by all the partners or by any one of them who acts as agent for all other partners of the company.
4. The profit and losses must be shared according to agreement which is done by the partners when they sign the agreement for partnership.
5. Partnership firm unlike a company has no separate legal existence from that of it owners. Partnership firm is just a name for the business as a whole.
6. A partnership firm comes to an end in the event of death, lunacy or bankruptcy of any partner. It can also be terminated by a mutual agreement between the partners.