Based on Creation

A partnership can be formed by the creation or for a specific purpose. Partnerships based on creation are further subdivided into:

• Partnership Made by Will

Here, there is no formal agreement or contract between the partners related to the partnership. The mutual consent of the parties just forms this partnership. There is no specific period for the partnership. Section 7 of the Indian Partnership Act deals with partnership made by a will.

• Particular or Specific Partnership

Here, there may be a specific agreement or contract between the partners. However, this partnership is only for a specific purpose or a project. A typical example would be a joint venture (JV) agreement between two or more parties. The parties enter into a JV to earn out specific profits. Hence under the partnership firm registration process, some form of partnerships can be established through creation.

Based on Registration

Different types of partnerships can be formed through the registration process. Partnership Firm Registration process allows the applicant to form the following types of partnership based on registration:

• Unregistered Partnership

Unregistered partnership is understood as a partnership which does not have any legal documentation pertaining to the process of partnership firm registration. Though there is mutual consent between the partners to act for the partnership, still having an agreement would reduce the issues for an unregistered partnership.

• Registered Partnership

This form of partnership firm registration is carried out under the provisions of the Indian Partnership Act, 1932. Usually, individuals planning to form a partnership firm would utilise this form of partnership.