PM120100 - What is a partnership?
A partnership is defined in S1(1), Partnership Act 1890, as 바카라 사이트˜the relation which subsists between persons carrying on a business in common with a view of profit바카라 사이트™.
The word 바카라 사이트˜persons바카라 사이트™ in this definition includes artificial as well as natural persons, so an individual, a body corporate or the trustee of a settlement may all be partners. This includes companies and Limited Liability Partnerships (LLPs), which will be discussed further at PM256100 onwards.
A Partnership is a relationship resulting from a contract or agreement, oral or written. The implementation of that agreement creates the partnership relationship. If it is not implemented, it is not effective (Dickenson v Gross [1927] 11TC614).
There is no limit on the number of partners a partnership may have.
In England, Wales or Northern Ireland a partnership is not in law a legal person; so one partnership cannot become a member of another partnership, though the members may do so. Under Scottish law, however, partnerships have distinct legal personality, allowing Scottish partnerships to be members of other partnerships, further guidance at PM131700.
You should note that a partnership, although it may not be a legal person, is still a 바카라 사이트˜person바카라 사이트™ for the purposes of the Taxes Acts, unless the contrary intention appears. A 바카라 사이트˜person바카라 사이트™ includes 바카라 사이트˜a body of persons corporate or unincorporate바카라 사이트™ and a partnership is a body of persons unincorporate.
바카라 사이트˜Business바카라 사이트™ is defined as including 바카라 사이트˜every trade, occupation or profession바카라 사이트™. So 바카라 사이트˜business바카라 사이트™ is a very wide term, embracing almost every commercial activity, and is much wider than trade or profession alone. It includes a business of making investments. Simply making an investment is not enough, there has to be sufficient organisation, continuity to make the activity a business.
The expression 바카라 사이트˜with a view of profit바카라 사이트™ distinguishes partnerships from clubs and societies which do not have a profit seeking motive, and also from arrangements only to share expenditure, where each person keeps their own income, for example some dentists or medical practitioners with joint surgeries, or some crop-sharing agreements.