In which situations partnership is called illegal?

Dear Goyal, Partnerships becomes illegal in the following cases:
1. As per the Partnership Act of 1932, there is no maximum limit on the number of partners in a firm, but as per the Section 11 of Company Act of 1956, the maximum number of partners should not exceed 10 for banking business and 20 for any business. In case if the number of partners exceeds the aforesaid limit, then the partnership becomes illegal.
2. Partnerships in smuggling, black marketing etc. are illegal business activities and hence, the partnership is also illegal.

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