The most preferred type of business after a sole proprietorship is a partnership firm. Where at-least two individuals join hands to carry on business and agree to distribute their profits accordingly. Since there are very less compliances as compared to a company, many people prefer to form a partnership firm as compared to a company. There are various business registrations due to the same. The partnership firm is governed by the Indian Partnership Act, 1932.The partners are governed by a contract which is known as a partnership deed. This partnership deed regulates the relation among partners and also between partners and partnership firm.