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FAQs Relating to Partnership Concern

FAQs Relating to Partnership Concern

1. What should an application for Partnership Firm include?
Application for partnership registration should include the following information:
Name of your firm
Name of the place where business is carried on
Names of any other place where business is carried on
Date of partners joining the firm
Full name and permanent address of partners.
Duration of the firm
Every partner needs to verify and sign the application
 
2. What are the documents to be enclosed with the registration application?
Following documents and prescribed fees are enclosed with the registration application: 
Application for Registration in the prescribed Form – I
Duly filled Specimen of Affidavit
Certified copy of the Partnership deed
Proof of ownership of the place of business or the rental/lease agreement thereof
 
3. Does Partnership Firm has a Separate Legal Entity of its own?
It is relevant to sate that for the purpose of levy of taxes; partnership firm is a separate legal entity quite distinct from its partners composing it and is assessable separately. But for all other laws they are treated as the same because a partnership firm does not have a separate legal entity of its own.
 
4. I am not a citizen of India. Can I be a partner in an Indian firm?
The Partnership Act does not prohibit a non-citizen from joining an Indian partnership firm, subject to necessary clearances and permissions from satisfactory authorities in this regard.
 
5. Can a minor be a partner in my partnership firm?
No, a minor cannot become a partner. However, your minor son can be admitted to the benefits of the partnership firm. He can share the profits of the partnership business with the consent of the other partners. He can also access, inspect and copy the accounts of the firm. Though the minor is not personally liable for the losses of the firm, his share in the partnership business is liable for the losses incurred
 
6. What are my rights and duties as a partner in my firm?
Following are the rights of a partner:
To take part in the business.
To share the profit or loss of the business
To inspect and make copies of the books of the firm
To receive remuneration for taking part in the business if specified in the partnership deed.
To receive interest on capital if specified in the partnership deed.
Following are the duties of a partner:
Carry on the business.
Be just and faithful to each partner.
Disclose true accounts of the firm.
Furnish full information of all things affecting the firm.
 
7. What are my Limitations as a Partner?
As a partner you cannot do the following without the consent of the other partners: 
Submit a dispute relating to the business to arbitration. 
Open a bank account on behalf of the firm in your own name. 
Compromise or relinquish any claim or portion of a claim of the firm. 
Withdraw a suit or proceeding filed on behalf of the firm. 
Enter into partnership with an outsider on behalf of the firm. 
Acquire or transfer immovable property belonging to the firm. 
Admit any liability in a suit or proceeding against the firm.
 
8. Can HUF become partner in a firm?
An HUF is not a legal person and so cannot enter into partnership with either an individual or another HUF.
However, The Karta or the manager of a Hindu Undivided Family can become a partner of a firm in his individual capacity. The Karta will be treated as the representative of the Hindu Undivided Family by the partnership firm.