Partnership

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viren

viren (Querist)
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12 November 2010 Can a Partnership firm be a partner in another firm?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 November 2010 • Can a firm become a partner in another firm?

A partnership firm cannot become a partner of another firm because it is not a legal person. However the partners may be partners in another firm in their individual capacity .

A firm is strictly not a person; It is an association of persons and the agreement by which a firm purports to enter into a partnership with an individual or another firm merely makes the partners of that firm individual partners of the larger partnership. A firm as such cannot enter into an agreement as a partner with another firm or individuals.

Therefore, when one partnership enters into a partnership agreement with another partnership firm, the partnership is in fact between all the partners of both the firms.

See following link---

https://www.vakilno1.com/howto/partnership/ptn2.htm

sudhakar ca cwa

sudhakar ca cwa (Expert)
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12 November 2010 No it Can't

Lets wait for other replies also

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 November 2010 Question may be asked if company can become a partner in a firm why can not a partnership firm?
But we all know Company has a separate legal entity which is not the case with partnership firm.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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12 November 2010 No it cannot. It can enter into JVs but not be partner in other partnerhsip firms.

Ajay Mishra

Ajay Mishra (Expert)
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12 November 2010 Dear Friend

Section 41(2) provides that only a person can be member of a company who has agreed in writing to become a member and whose name is entered in the register of members.

As per Department’s Circular No. 4/72, dated 9-7-1972, it has been clarified that “a firm” not being a person, can not be registered as a member of a company.

Regards
CS Ajay Mishra

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