Persons who have entered into a partnership with one another to carry on a business are individually called “Partners“; collectively called as a “Partnership Firm”; and the name under which their business is carried on is called the “Firm Name”. A Partnership is one of the most important forms of a business organization, where a formal agreement between two or more people is made who agree to be the co-owners, distribute responsibilities for running an organization and share the income or losses that the business generates. Hence, unlike a company that has a separate legal entity distinct from its members, a firm cannot possess property or employ servants, neither it can be a debtor or a creditor. It cannot sue or be sued by others. Registration is optional for General Partnerships but it is advisable to do so. Partnership firm registration offers various benefits that do not apply to the non-registered ones.