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Wednesday 1 October 2014
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Pakistan study notes for Matric, Intermediate, B.A, B.COM BSC, M.A, BCS. Free Pakistani Urdu educational school, colleges and University notes.

KINDS / CLASSIFICATION OF PARTNERSHIPS

KINDS / CLASSIFICATION OF PARTNERSHIPS

Partnership may be formed under the following kinds.

Limited partnership

Registered partnership

Unregistered partnership

 

Limited Partnership

Indian Partnership Act 1932 does not allow to form a limited partnership. However English Limited Partnership Act 1907 permits the creation of a limited partnership. It should be noted that the limited partnership is not at all comparable to the limited company.

A limited partnership is one in which one or more but not all partners have limited liability. The concept of limited liability means that the liability of one or a few partners is limited to the amount invested in the business.

The act calls for that in the limited partnership there must be at least one general partner whose liability will be unlimited to pay all debts of the firm. Hence, it can be inferred that limited partnership is not really completely limited in scope. It has only one or more limited partners and the rest are general partners. So the limited partnership must have both types of partners, viz., (i) limited partners, and (ii) general partners.

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