Likewise, companies which are regulated by Companies Act, 2013, the other form of business is partnership, which is regulated by Indian Partnership Act, 1932. The partnership is considered as the convenient way to start

A partnership depends on the existence of a relationship which results from a contract to carry on business. A partnership relationship can arise only by mutual consent. The agreement, which gives rise to the partnership relationship, may be express or inferred from parties' conduct. According to Section 4 "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". When analysed, the definition tells us that in order that persons may become partners, it is essential that: There must be at least two persons There must be relationship arising out of an agreement between two or more persons to do a business The agreement must be to share the profits of a business The business must be carried on by all or any of them acting for all All these four elements must be present before a group or an association can be held to be partners. In other words, it can be said that all the a fore stated four elements must co-exist before a partnership can be said to come into existence. If any one of them is not proved to be present, there cannot be a partnership. In the instant case, since the objective of this association is not sharing profits so the third element is not present. This association can not be termed as partnership.