Becoming partner
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 March 2015
Suppose....
Is possible. ...
In partnership firm to become partner without contribute capital in any kind...but get equal profit sharing ratio
Is possible. ...
In partnership firm to become partner without contribute capital in any kind...but get equal profit sharing ratio
31 March 2015
mostly it is will not accepted by existing partners.
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 March 2015
If they agree ..Is possible
01 April 2015
If agreed by all partners and contained in partnership deed then only its possible as there is no provision restricting the same.
01 April 2015
Reference is invited to the definition given in the Partnership Act, 1932. Para 1 of Section 4 of the said Act reads as under, " Partnership" is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all." If we analyse the said definition, the following characteristics stands out: (i) Association of two or more persons, (ii) Agreement, (iii) Business, (iv) Sharing of profit ( profit also includes the sharing of losses) and (v) Mutual Agency. So what ever, the terms and conditions are settled between the partners ( as mentioned in the Deed)the Partnership is governed by that Deed. The Act do not prescribe it mandatorily to contribute any capital. There may be partnership without introducing any capital. For example: Two person agreed to share the profits for teaching some students. In that business it may be possible, that none of them have contributed any capital ( in rupee terms). However, in practical terms there are some remote chances of running a business without the capital. It is also to be mention here that capital does not mean only the contribution in terms of money, it may be in the form of contributing Land, Building, Intellectual work etc etc. So in the question raised by you, the other person say Mr A ( who is contributing the capital in terms of money)may agree to have the partnership with the person say Mr B ( who is not contributing capital in money terms) when Mr A satisfies himself that the inclusion of Mr B in the partnership will be the value addition in the business on account of the some attributes associated with the name of Mr B ( the attributes may be like, a very resourceful person, a very renowned personality, having business ideas etc etc.
01 April 2015
Rajeev sir request you to also post your conclusion based on the said refrence you provided above.
01 April 2015
Dear Tishar ji, Greetings. To sum up, they may enter into the partnership. In the Deed, it may be mentioned so. Regards. Rajeev Babel.
01 April 2015
Very thankful to you sir for responding and conluding the same.
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