A partnership firm is an ancient way to start a business in India. In a partnership firm, two or more people join together to achieve common objects. Section 4 of the Indian partnership act 1932 defines partnership firms. ’’Partnership” is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Persons who have entered into a partnership with one another are called individually “partners” and collectively a “firm”, and the name under which their business is carried on is called the “firm name”. The registration of a partnership firm is not compulsory under part VII of the Indian partnership act, 1932. So, we have two ways to start a business in this format, the first is an unregistered partnership firm constituted through partnership deed and the second one is a registered partnership firm constituted through partnership deed with registered in magistrate office/ registrar of firms.