A partnership company is ideally suited for small firms that intend to stay small. It is a viable choice for such companies due to its low prices, ease of setup, and minimum regulatory criteria. General Partnerships are excluded from registration. Section 4 of the Relationship Act of 1932 controls it. With the advent of the Joint Liability Company, it has lost significance for bigger companies (LLP).. This is due to the fact that an LLP enjoys the reduced costs of a relationship while providing the privilege of unrestricted liability, which ensures the partners are not individually responsible for the business's debts. At least two partners are needed for a partnership company. A relationship firm in the banking industry can have up to ten partners, while those of any other company can have up to twenty partners.