Partnership act

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Ankita Musani (Querist)
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02 October 2013 In case of partnership, can we mention in deed regarding share of profit :
" upto X students 10%, upto y students 20%" like that? or it should be specific?

and

Can NRI or foreigner be partner in indian partnership firm?

Ankit

Ankit (Expert)
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02 October 2013 Dear Ankita,

Since partnership is completely based on mutual understanding, you can have the profit sharing as you desire.

However, the language should be totally clear and not be ambiguous else there may be problems in future....

Incase you have any further queries, please feel free to ask

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Ankita Musani

Ankita Musani (Querist)
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09 October 2013 Thanks.

second part of my question...

Can NRI or foreigner be partner in indian partnership firm?

Ankit

Ankit (Expert)
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09 October 2013 You are welcome…

Yes he can be a partner subject to the conditions mentioned in the RBI Circular 2/2009-10. The conditions are as follows:

i. Amount is invested by inward remittance or out of NRE / FCNR(B) / NRO account maintained with Authorised Dealers / Authorised banks.

ii. The firm or proprietary concern is not engaged in any agricultural / plantation or real estate business (i.e. dealing in land and immovable property with a view to earning profit or earning income there from) or print media sector.

iii. Amount invested shall not be eligible for repatriation outside India.

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Ankit

Ankit (Expert)
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16 October 2013 you are welcome...if you have any other query, please feel free to ask

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