According to the Companies Act, 2013, the Central Government has prescribed the maximum number of partners in a partnership firm to be 50.
Prior to the Companies Act, 2013, different limits existed:
- Banking business: 10 partners
- Other businesses: 20 partners
However, the Companies Act, 2013 made this uniform by setting the maximum limit at 50 partners for all types of partnership firms.
If the number of partners exceeds 50, the firm must be registered as a company under the Companies Act, 2013.
Correct Answer: Option 2 (50)