Right. I thought that applied only to LLP structure.
Also another question,
Why is partnership between family and even friends okay but not with general public? In the last paragraph, SEBI banned the entity and its promoters for carrying out AIF type activities without an AIF license.
If a partnership exists only between family & friends, does the firm not classify as conducting AIF type activities?
There are no regulations if a bunch of folks (family and friends) get together to start a business. But as soon as you begin scouting for capital from people, all regulations apply.