HANS Accounts Tutorials

Number of Partners in partnership Firm
In Partnership Act 1932 nothing was mentioned as to maximum numbers of partners in partnership firm.
But later on in Company Act 1956, it was mentioned that there can be 20 partners in a firm carrying other than banking business but in banking business there should be maximum 10 partners. This was prevailing up to 2013.
Now as per Company Act 2013, Section 464 maximum numbers are allowed 100 but as per rules of company act these numbers cannot exceeded to 50
Means that as per present rules of maximum numbers of partners can be 50 only. However Govt. can amend it to 100 maximum after further notification. So presently having partners more that 50 will be deemed as illegal association of members.