Types of Partnership
Partnership formed to carry on business for an undefined period is called partnership at will. In other words, no time-limit is specified for the continuance of the firm. It is to be dissolved when a partner gives notice of his intention to dissolve the partnership. Thus this type of partnership continues its business activities as long as there is mutual cooperation and confidence among partners. Since it comes to an end at the will of any partner on his giving notice, it is called partnership at will.
Where a partnership is formed for a definite period of time, it is known as partnership for a fixed term. The partnership for a fixed term comes to an end on the expiry of the stipulated period. But if the business is continued even after the original fixed period, it automatically becomes a partnership at will. As such it will be terminated at the will of any partners, giving notice of his intention to do so.
When a partnership is formed to carry on a particular venture or a business of temporary nature, it is called particular partnership. Such a firm lasts so long as thebusinessagreeduponisnotcompleted. In other words, it comes to an end on the completion of the particular venture. If such a firm is not dissolved and it begins to undertake new activities not originally contemplated, the rights and obligations of the partners continue to be the same as in the original partnership and it will continue till a partner gives a notice of his intention to dissolve the firm.
Limited Liability Partnership is very popular in the service sector and in the small scale business enterprises. Limited liability partnership means for paying the debts of the firm only the assets of the business will be utilized and not the personal properties. It is prevalent among popular professionals such as Cost Accountants, Company Secretaries, Chartered Accountants, Lawyers, Architects, Engineers and Doctors. Limited Liability Partnership is available in countries like U.S.A, Singapore, Thailand and U.K. It came into existence in India since 2008.