The types of partnership firm and their explanation is given below,
(A) Partnership according to time limit.
1. Partnership at will:

• A partnership where in no duration is mentioned in the partnership deed is called partnership at will. This means that the life or existence of the partnership depends on the will of the partners. They can continue as long as they remain united.
• If any of the partner wishes to dissolve the firm then he can do so by giving a legal notice to dissolve the firm.

2. Term partnership:
When the duration of the partnership is mentioned in the agreement it is called partnership for a fixed time.
Once the rturation is completed, the partnership dissolves automatically. However, if the partners wish to extend the duration they can.

3. Partnership for a specific work:

• A partnership done to accomplish a specific work such as building a bridge, compl eting a project, etc. is called a partnership for specific work.
• As soon as the work gets over, the partnership dissolves automatically.

(B) Partnership according to liability:

• Partnership with limited liability: It partnership firm where in one partner is allowed to have limited liability and all remaining partners have unlimited liability is called a partnership with limited liability. This is a special type of partnership.
• Partnership firm with unlimited liability: The partnership firm in which the liability of each member is unlimited is called a partnership firm with unlimited liability.

(C) Partnership according to business:
1. Banking firm:

• A partnership firm that accepts deposits from public and as per specific conditions lend money to the customers is called a banking firm.
• A banking firm has minimum 2 partners and maximum 10 partners.

2. General (Non-banking) firm:

• A partnership firm created for any legal activity other than banking is called a general partnership firm.
• This firm can.have minimum 2 partners and maximum 20.

(D) Partnership according to registration:
1. Registered partnership firm:

• A partnership which is registered with the Registrar of Firms is called a registered partnership firm. It is not compulsory to register a partnership firm but it is advisable to do so.
• A registered firm can go to court of law to solve disputes and to recover debts from a third party/person.

2. Unregistered partnership firm:

• A partnership firm which is not registered with the Registrar of Firms is called an unregistered partnership firm.
• It is difficult for an unregistered firm to recover its debts from third party by going to court of law.