A Partnership firm is a legal agreement between two or more individuals for carrying business operations as owners. Partnership act was introduced in the in year 1932. Partnership Deed defines the terms and conditions of partnership and is a legal document. Partnership can be dissolved easily. The clauses in Partnership Deed have all details like Nature of partnership, Duration of partnership, Name of the firm, Capital, Share of partners in Profits and losses, Bank Account firm, etc. This Deed has to be registered with the registrar of firms. Partnership deed does not work on perpetual succession. Partnership liabilities are unlimited and independent of the ratio of shares of partners. Total number of partners can go up to 20as per IPA1932. A company can be a partner to another partnership firm.