Can anyone please tell If a CA is a partner in a partnership firm and is a proprietor in his/her own CA firm, having his/her office in his/her father's house (where the same is residing as well). To fulfill the KYM requirement, what document can be provided? If rent agreement to be created (Between father and son/daughter), in whose name it should be created (in the partnership's firm name or own firm name)? Also, can anyone provide the format of the same?
10 July 2024
In the scenario where a Chartered Accountant (CA) is a partner in a partnership firm and also operates a separate CA firm from his/her father's house, the KYC (Know Your Customer) requirements typically involve providing proof of address for both the partnership firm and the individual CA's firm. Here’s how you can approach this:
### Rent Agreement Format:
1. **Partnership Firm's Rent Agreement**: - **Parties Involved**: The agreement should be between the partnership firm (represented by its partners) and the father (landlord). - **Details**: It should outline the terms of the rent, including duration, rent amount (which could be nominal or commercial depending on the arrangement), and other relevant clauses like maintenance responsibilities. - **Signature**: Signatures of the partners of the partnership firm and the father as landlord.
Example format: ``` RENT AGREEMENT
This Rent Agreement (the "Agreement") is made on [Date], between:
Landlord: [Father's Name] [Father's Address]
Tenant: [Name of Partnership Firm] [Address of Partnership Firm]
Terms and Conditions: - The premises located at [Address of Father's House] shall be rented to [Partnership Firm]. - Rent Amount: [Specify amount or state that it is nominal] - Duration: [Start Date] to [End Date, if applicable] - Other Terms: [Maintenance responsibilities, access, etc.]
Signature of Landlord: __________________ Signature of Partner 1: __________________ [Father's Name] [Partner 1 Name]
Signature of Partner 2: __________________ Signature of Partner 3: __________________ [Partner 2 Name] [Partner 3 Name] ```
2. **Individual CA Firm's Rent Agreement**: - Similarly, if required, a separate rent agreement can be created between the individual CA (proprietor) and the father. - This agreement would serve to establish the proprietorship's address for KYC purposes.
### Considerations: - **Nominal Rent**: If the rent is nominal or the space is provided without charge, ensure this is clearly stated to reflect the actual arrangement. - **Documentation**: Both agreements should be supported by relevant documentation such as property ownership proof, identity proofs, and any other documents required by the authorities for KYC compliance. - **Legal Advice**: It’s advisable to have these agreements reviewed by a legal professional to ensure they comply with local laws and serve the intended purpose for KYC.
By having clear and legally sound rent agreements in place between the respective parties, you can meet the KYC requirements for both the partnership firm and the individual CA firm effectively.
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