Can a Company become Partner in Partnership firm?

Tax queries 242 views 3 replies

My query is:

1. Whether a private limited company become partner in partnership firm?

2. Whether more than 1 private limited company become partner in partnership firm?

3. How is the PSR to be decided in case of partnership firm?

4. Whether after becoming partner, the pvt ltd co transfers money in partnership firm and the other partner withdraws the same, will there be any consequences?

5. Whether consolidation will be applicable for pvt ltd cos who become the partners?

Replies (3)
1
. yes
2. yes
3. what is psr

PSR means Profit sharing ratio.

Companies are juristic persons and can become partners in a partnership firm if their objects permit it. Trustees: Trustees of private religious trusts, family trusts, and Hindu mutts can enter into partnerships unless their constitutions or objects forbid it.


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