Opening capital
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 April 2012
sir, how much cash can brought as a capital in partnership firm. at the time of starting .
15 April 2012
There is no restriction on introduction of Capital in a Partnership firm in Cash...But it is important to note that the source of the cash being introduced as capital must be justified else A.O. in course of assessment may treat it as an unexplained cash credit and shall tax the same.
15 April 2012
agree with expert.
15 April 2012
Hi
Partnership may be formed with any two persons who are capable of entering into an agreement. A partnership cannot be created with minor, as he is capable of entering into a contract, though of course he would be admitted to the benefits of the partnership. The partnership act does not prescribe any maximum number of partners.
There is no minimum requirement of capital. The partner brings their own capital required for the business. In a trading firm a partner has implied authority to borrow money for the purpose of the business on the credit of the firm.
Regards
Partnership may be formed with any two persons who are capable of entering into an agreement. A partnership cannot be created with minor, as he is capable of entering into a contract, though of course he would be admitted to the benefits of the partnership. The partnership act does not prescribe any maximum number of partners.
There is no minimum requirement of capital. The partner brings their own capital required for the business. In a trading firm a partner has implied authority to borrow money for the purpose of the business on the credit of the firm.
Regards
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