Can a Company be a partner in a Partnership Firm

Plz Reply

Its urgent

NO

u/s 4 of IPA 1932, P'ship is ' ...the relation b/w 2 or more persons....'  but a co. is not a person. It is an ARTIFICIAL PERSON. 

Hence it can't be a member of a p'ship firm.

Hope it resolves the matter.

Since  a co. can't be a member of a p'ship firm the issues touched in ur query no 2&3 do not arise at all.

Happy Studies!

I agree with you that Company is a artificial person

But at the same time Company can enter in to any contract with its name.

And Companies have separate legal entity

So why a company can not enter in to contract with others to form a partnership.

A company is an artificial person... It has a seperate legal entity..  Also it can enter into contract.. So a company can enter into partnership but the articles of the company should permit the company to do the same....

Eligibility For Partnership

A partnership agreement can be entered into between persons who are competent to contract. Every person who is of the age of majority according to the law to which he is subject and who is of sound mind and is not disqualified from contracting by any law to which he is subject can enter into a partnership.

The following can enter into a partnership

1.      Individual :
An individual, who is competent to contract, can become a partner in the partnership firm. If there are more than two partners in a firm, an individual can be a partner in his individual capacity as well as in a representative capacity as Karta of the Hindu undivided family.

2.      Firm :
A partnership firm is not a person and therefore a firm can not enter into partnership with any firm or individual. But a partner of the partnership firm can enter into partnership with other persons and he can share the profits of the said firm with his other co-partners of the parent firm.

3.      Hindu Undivided Family :
A Karta of the Hindu undivided family can become a partner in a partnership in his individual capacity, provided the member has contributed his self acquired or personal skill and labour.

4.      Company :
A company is a juristic person and therefore can become a partner in a partnership firm, if it is authorised to do so by its objects.

5.      Trustees :
Trustees of private religious trust, family trust and trustees of Hindu mutts or other religious endowments are juristic persons and can therefore enter into partnership, unless their constitution or objects forbid.

Regards

K.Ilayaraja

1) a company is a seperate entity and it is allowed to enter into a partnership. The director or any other authorized person  are to sign on behalf of the company. This is for a specific term or a specific vebtures.

the answer to the 2nd nd 3rd question is negetive.

Can the company get Remuneration

a company can vry well recieve remuneration provided its a workin partner..!!

Note that only exception is Section 25 companies can be partners in firm.

A company is a juristic person and therefore can become a partner in a partnership firm, if it is authorised to do so by its objects.

A Company is an Artificial Person. so company can not be an active partner. Director of the company can be an active patner in that case, the remuneration receive from the comapny will be taxable in handa of company or in hands of partners?