Question

What is the maximum number of partners that a partnership firm can have? Name the Act that provides for the maximum number of partners in a partnership firm.

Answer 1

Partnership is governed by Indian Partnership Act,1932. Its the relation between persons who have agreed to share profits of a business carried on by them.

The partnership Act does not lay down any maximum number of partners. But according to section 464,Rule 10 of Companies miscellaneous Rules,2014, maximum number of partners is 100. According to section 11 of the Companies Act, 1956 a partnership for a banking business must not have more than 10 partners and for other business it must not exceed 20.