Definition of Partnership? Meaning of Partnership? What is Partnership?

Partnership: A Partnership (also known as General Partnership) is formed where two or more persons carry on a business in common with a view to making profit. Generally, the maximum number of partners allowed in a partnership is 20.

The partners can either be individuals or bodies corporate. Should more than 20 persons wish to carry on business together, they will have to do so through a Company (see Section 5 below). This does not apply to partnerships formed solely or mainly for the purpose of carrying on any profession that is regulated by other legislation (eg law firms, accounting firms, medical practices).

A business partnership is often legally referred to as a ‘firm’.