A partnership is created by an agreement between partners. Generally, the terms of a partnership is 'at will' or for a particular purpose or period.

A partnership 'at will' can be dissolved as and when the partners decide to do so. An agreement of termination is required to be executed between the partners to this effect. A partnership for a particular period ceases to exist at the end of the specified period or at the completion of the specific purpose for which it was started.

Also, if the partnershiphas obtained registrations such as GST, Shops and Establishment and Professional Tax, all the related compliance have to be completed and formal closure of all these registrations also have to be done.