Partnership
This query is : Resolved
12 November 2010
• Can a firm become a partner in another firm?
A partnership firm cannot become a partner of another firm because it is not a legal person. However the partners may be partners in another firm in their individual capacity .
A firm is strictly not a person; It is an association of persons and the agreement by which a firm purports to enter into a partnership with an individual or another firm merely makes the partners of that firm individual partners of the larger partnership. A firm as such cannot enter into an agreement as a partner with another firm or individuals.
Therefore, when one partnership enters into a partnership agreement with another partnership firm, the partnership is in fact between all the partners of both the firms.
See following link---
http://www.vakilno1.com/howto/partnership/ptn2.htm
A partnership firm cannot become a partner of another firm because it is not a legal person. However the partners may be partners in another firm in their individual capacity .
A firm is strictly not a person; It is an association of persons and the agreement by which a firm purports to enter into a partnership with an individual or another firm merely makes the partners of that firm individual partners of the larger partnership. A firm as such cannot enter into an agreement as a partner with another firm or individuals.
Therefore, when one partnership enters into a partnership agreement with another partnership firm, the partnership is in fact between all the partners of both the firms.
See following link---
http://www.vakilno1.com/howto/partnership/ptn2.htm
12 November 2010
No it Can't
Lets wait for other replies also
Lets wait for other replies also
12 November 2010
Question may be asked if company can become a partner in a firm why can not a partnership firm?
But we all know Company has a separate legal entity which is not the case with partnership firm.
But we all know Company has a separate legal entity which is not the case with partnership firm.
12 November 2010
No it cannot. It can enter into JVs but not be partner in other partnerhsip firms.
12 November 2010
Dear Friend
Section 41(2) provides that only a person can be member of a company who has agreed in writing to become a member and whose name is entered in the register of members.
As per Department’s Circular No. 4/72, dated 9-7-1972, it has been clarified that “a firm” not being a person, can not be registered as a member of a company.
Regards
CS Ajay Mishra
Section 41(2) provides that only a person can be member of a company who has agreed in writing to become a member and whose name is entered in the register of members.
As per Department’s Circular No. 4/72, dated 9-7-1972, it has been clarified that “a firm” not being a person, can not be registered as a member of a company.
Regards
CS Ajay Mishra
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