Restriction of partners

Dear Kalpana,

    Since partnership is ‘agreement’ there must be minimum two partners. The Partnership Act does not put any restrictions on maximum number of partners. However, section 11 of Companies Act prohibits partnership consisting of more than 20 members, unless it is registered as a company or formed in pursuance of some other law.

try reading bare acts for such Q.

the act restricts the number of partners. in case of banking business, there cant be more than 10 partners and in other business not more than 20.

yes mr manish singh is correct

Atleast two persons are necessary but law lays down a maximum figure beyond which the prtnership would become illegal. The maximum number is fixed at ten in case of  banking business and twenty in case of other business.

Under  LLP ACT , the  nubmer of Partners is not limited   in LLP partnerships /  the present Partnership Firms can be converted as LLP -  it may be  from April 2009