Rule 10 of Companies(Miscellaneous),Rules, 2014: Association or partnership of persons

The rule states that, 'No association or partnership shall be formed, consisting of more than fifty persons for the purpose of carrying on any business that has for its objects the acquisition of gain by the association or partnership or by individual members thereof, unless it is registered as a company under the Act or is formed under any other law for the time being in force.'

As per rule 10 of Companies (Miscellaneous) Rules, 2014, no association/partnership, can be formed of more than 50 persons for carrying on any business that engaged in profit generating business provided it is registered as a company under the Act or is formed under any other law.

Moreover, section 464 of the Act prescribes that Central Government has the power to raise such number of persons, maximum to 100.