Partnership firm vs maximum number of partners

This query is : Resolved 

18 August 2013 Dear Experts,
What is the treatment of income-tax taxablity in excess maximum limit of 10 partners in banking business. And also in excess of 20 partners in other business.

thanks


18 August 2013 First of all the RBI will not grant any licence to a partnership firm if the minimum number of partners exceeds the minimum number required for granting Banking licence. Secondly the partners limit of 20 cannot be exceeded as it will be treated as illegal partnership and the Registrar of firm shall not grant the registration as a partnership firm.

So better you register the same as LLP or Pvt. or Ltd. company in the specific circumstances by adopting rule 9 conversion.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries