Question

In order to form a partnership, there should be atleast :

• A. One person
• B. Two people
• C. Seven people
• D. Fifty people

Hint:

Remember the limits for a partnership firm: Minimum members = 2. Maximum members = 50 (as per the current provisions of the Companies Act, 2013).

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
A partnership is defined as a formal arrangement by two or more parties to manage and operate a business and share its profits.

Step 2: Detailed Explanation:
According to the Indian Partnership Act, 1932, a minimum of two persons is required to form a partnership. This is a fundamental legal requirement because a single individual cannot enter into an agreement or contract with themselves. Therefore, to have a valid partnership agreement, there must be at least two competent persons.

Step 3: Final Answer:
The minimum number of persons required to form a partnership is two.