Is a partnership deed necessary to form a partnership firm?
No, it is not necessary. However it is often prudent to make a partnership deed to produce to the bank, income tax authorities and to clients with whom the partnership firm deals with. 3. Can a partnership firm be constituted for a particular business undertaking? Yes. A person may become a partner with another for a single adventure or undertaking. 4. Is there a limit on the number of partners in a partnership firm? Yes. If the number of partners is more than 20, it has to be registered as a company. 5. Can a partnership firm be sued in the name of the firm? A person may sue a partnership firm but the plaint has to disclose the name of all the partners who constitute the firm. However under the Income Tax Act, a firm can be assessed to tax independently of its partners. A partnership firm therefore enjoys a quasi independent status. 6. Can one deal with one of the partners of a partnership firm? Yes. The law presumes that each partner is an agent of the other and dealing in good faith
