Accountancy Part AAccounting for Partnership

Which Act prescribes the maximum number of partners in a partnership…

Which Act prescribes the maximum number of partners in a partnership firm?

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Indian Companies Act, 2013

NCERT (2026-27 edition):
Two or More Persons – “There is however, a limit on their maximum number. By virtue of Section 464 of the Companies Act 2013, the Central Government is empowered to prescribe maximum number of partners in a firm but the number of partners can not be more than 100. The Central government has prescribed the maximum number of partness in a firm to be 50.”