A legal arrangement involving two or more organizations that specifies joint ownership and operations of a company. A relationship can be formed between two individuals, companies, or a group of individuals and organizations.
Business Partnerships typically starts with an oral agreement between the partners to establish a new company or merge a current one, which is then verified by a formal contract describing the kind of partnership and the agreement's specifications, which is agreed and signed by both parties.
General Partnership: Two or more Organizations can form and sign a general business partnership where all parties are stake holders and may have defined therein as per the contract the liabilities, assets, profits, and losses (if any). In this sort of set up there is mutual responsibilities for business partners.
Limited Partnership: In this, one organization is operational and others remain silent financial partners. In this case, the limited partners share profits but the loss, they do not share more than they have invested in
Limited Liability Partnership (LLP): This type of business partnership is not allowed in every profession and in every country as it differs from a case to case basis. Here the partners share responsibilities but have limited liabilities over each other for errors done (if any)
Limited Liability Limited Partnership: In this type of business partnership one general partner remains operative like LLP but it limits the liability of that general partner so that all the parties have liability protection.