Can a Partnership Firm be a Partner in Other Partnership Firms ??
I approached Registrar of Firms for Registering a New Partnership in which One of the Partners is a Partnership Concern and the Other Partner is an Individual. The Registrar asked me to check back with The Partnership Act 1932 and revert
ONLY NATURAL PERSON CAN BE A PARTNER IN A PARTNERSHIP FIRM.
THUS, DIRECTLY HUF, PARTNERSHIP FIRM OR COMPANY CANNOT BE A PARTNER.
HOWEVER, IT CAN BE REPRESENTED BY KARTA OR PARTNER OR DIRECTOR IN THEIR CAPACITY.
BUT ONE ONE HAS TO BE CAREFUL WITH REMUNERATION CLAUSE AS IT CAN BE GIVEN ONLY TO NATURAL PERSON
aadhyayan @ gmail.com
CAclubindia
