Nikhil Kaushik
(Fellow CA)
(86528 Points)
Replied 06 February 2025
no. you cannot do that.
A member of the Institute can acquire interest in family business in any of the following manner:
a) as a proprietor of a proprietary firm.
(b) as a partner of partnership firm.
(c) in the name and style of Hindu Undivided Family as its Karta or a member.
It would be necessary for the member to provide evidence that interest in the family business concern devolved on him as a result of inheritance/succession/partition of the family business. It is also necessary for the member to show that he was not actively engaged in carrying on the said business and that the family business concern in question was not created by him. The member is required to submit an application and a declaration in the prescribed format.
Monika
( )
(90 Points)
Replied 05 March 2025
Ok that means he/she can become partner of an existing family firm. Also he cannot become working partner & draw remuneration. Am I correct?
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