LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Maximum mumber of members in non banking business is?

vemuri harish prasad (inter) (42 Points)

09 August 2020

how many maximum number of members should be a non banking partner ship firm

Reply
Follow
Share

11 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 09 August 2020

Partnership Firm (business other than banking business ) can have a maximum 50 Partners.

2 Like

vemuri harish prasad (inter) (42 Points)
Replied 09 August 2020

Thank you sir for your answer

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 10 August 2020

Most welcome....

Nidhi (Chief Accountant) (3150 Points)
Replied 10 August 2020

Any notification for this?

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 10 August 2020

It's as per Section 464 of the Companies Act, 2013.

Nidhi (Chief Accountant) (3150 Points)
Replied 10 August 2020

There is no rule in partnership act.
is company act applicable to partnership firm?

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 10 August 2020

No, there is no restriction regarding same in The indian Partnership Act, 1932.

As per Section 464 of The Companies Act, 2013 ) "No association or partnership consisting of more than such number of persons as may be prescribed shall be formed for the purpose of carrying on any business that has for its object the acquisition of gain by the association or partnership or by the individual members thereof, unless it is registered as a company under this Act or is formed under any other law for the time being in force "

So, if you have a more than 50 Partners than you have to compulsorily convert your firm into PVT. LTD.

1 Like

Nidhi (Chief Accountant) (3150 Points)
Replied 10 August 2020

Sir, but limit given in Section 464 is 100 partners, plz clarify

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 10 August 2020

As per section 464 "Provided that the number of persons which may be prescribed under this sub-section shall not exceed one hundred."

it means Goverment have a power to prescribed the limits up to 100 partner.
But currently prescribed limit by Government is 50 Partners only. (refer rule 10 of The Companies (Miscellaneous) Rules, 2014)

1 Like

Nidhi (Chief Accountant) (3150 Points)
Replied 16 August 2020

Sir, Can CA firm have unlimited partners.?

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 16 August 2020

Section 464 is applicable to all firm except " partnership firm , if it is formed by professionals who are governed by special Acts."
So, above restriction of 50 Partners is not applicable to professional firms like CA /CS/advocate firms ect.
But it's subject to any limitations given in respective Act governing such profession.

1 Like