LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Dealing in stocks and shares

khyati shah (article) (50 Points)

16 July 2016

Hello All, My Query, I am planing to open up a partnership firm in which all the partners would be my family members. The main business of the firm would be to purchase the shares and stock in the name of partners and just for the investment purpose. The main intention behind this is that we have to just handle one demat account and the shares and stocks can be held in different name of the partners. Please suggest me any whether the same can be done or not and do also suggest me the consequences of same. Thanking all in advance

Reply
Follow
Share

2 Replies

(Guest)

Dear Friend,

First of all, please ensure to include the members who are above 18 only.
Also ensure to have al least 3-4 people who have strong knowledge about stock exchanges. ( apart from you )
Hire a good + experienced + professionally qualified + reputed Corporate Lawyer ( Ask him to become your Mentor )
Don't go for investments directly from Day 1. Discuss with all family members before the investments made.
Don't invest large sum of money into share market, it will be not suitable for new comers like you.
Keep patience and do not get panic by rumors or if share price falls down.
Always remember that, after every night there is bright sunlight....it's true for this also.

Wish you all the best and God bless your comapany.

regarding your question, I will collect the required information within few days.

sandeep (student) (188 Points)
Replied 17 July 2016

as per income tax act partnership firm is different assessee which means firm will be assessed as same manner as company.it will be not wise to disclose in the name of the partnership firm although trading is done in the name of individual name.
you can do traiding in the name of the partnership firm.
by opening a demat account I n the name partnership firm .
partner can contribute fund in the partnership firm as per deed