An interesting note about partnerships in India, is the fact that status does not relate to a formation of partnerships. In order to have a partnership that is recognized, the people who are engaged must enter a formal contract. Furthermore, partners who engage in a general partnership, are also called general partners, who have unlimited liability. Japan In Japan, general partnerships are called Kumiai. They are made up of general partners, whom have unlimited liability, like in the United States, meaning general partners are fully responsible for any and all business debts and claims. This was founded under Civil Code Act No. 89 of 1896, in which it describes general partnerships as an engagement between partners who decide to jointly run a business. Although no formal proceedings are necessary to enter a partnership agreement, general partners are taxed with a "pass-through" taxation. Japan does not consider general partnerships as separate legal entities. United Kingdom The Partnership Act 1890, which was an act of Parliament of the United Kingdom, governing the rights and duties of people and corporate entities conducting a partnership, was the first law allowing for partnerships. In the United Kingdom, general partners within a general partnership are personally liable for any and all business debts and claims. Business profits and losses are shared between all partners and each partner would be taxed individually on their share, which is similar to the "pass-through" taxation. Scotland Unlike the rest of the United Kingdom, in Scotland general partnerships are considered separate legal personalities, meaning a general partnership entity is able to do things such as, own assets in its own name, borrow money and grant security of assets that are within its own name and, bring issues to court in its own name. United States In the United States, general partners enjoy pass-through taxation, which allows business profits and losses to be passed through to its owners instead of being taxable to the business entity itself. Limited partners do not have to pay self-employment taxes on profits that they receive from the partnership due to the fact that they are not considered as active members of the company, while general partners pay self-employment taxes on their share of profits. There are four types of partnerships, the general partnership, the limited partnership, the limited liability partnership, and the limited liability limited partnership. Three varieties of partnership, the general partnership, limited partnership, and