Opening capital

This query is : Resolved

Share Report Follow Query Ask a Query

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 .

Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
Follow

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.

CA Prashant Gupta

CA Prashant Gupta (Expert)
Follow

15 April 2012 agree with expert.

Ajay Mishra

Ajay Mishra (Expert)
Follow

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

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