Can a Company be a partner in a partnership firm (not LLP)

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Rupesh Gujarathi (Querist)
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05 October 2010 In this context, I want to know that since the liability of every partner in a partnership firm is unlimited, then how can a limited company be a partner in a partnership firm which is not an LLP.

Also, I understand that there is a DCA circular in this regard Circular No. 1-81 (20-1-81-CL-V). But this circular is not touching this unlimited liability aspect of Partnership law.

Rashaad Hussain

Rashaad Hussain (Expert)
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06 October 2010 Yes it can.
But not viceversa.

Rupesh Gujarathi

Rupesh Gujarathi (Querist)
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06 October 2010 Your answer is not clear. Did you mean to say that a company can be a partner in a partnership firm which is not an LLP?

What is mean by Vice versa? Do you mean that a partnership firm cannot hold shares in company?

Please reply.

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