Can a registered partnership firm become partner in another partnership firm?

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This topic contains 1 reply, has 2 voices, and was last updated by Dr. Ashok Dhamija Dr. Ashok Dhamija 2 months ago.

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  • #2860

    Anonymous
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    We have a partnership firm which is registered with 2 partners. Can our partnership firm become a partner in another partnership firm which is also a registered firm? Will there be a legal issue if we do so?

  • #2903

    As per the provisions of the Partnership Act, 1932, “partnership” is the relation between persons who have agreed to share the profit of a business carried on by all or any of them acting for all.

    Unlike a company, a partnership firm is not a “person”. A company is a separate legal person and has its own separate independent existence apart from its shareholders / members. But, a partnership firm is not a separate legal person.

    In view of this, it is not possible for a partnership firm to become a partner in another partnership firm. However, of course, its partners can become partners in such other partnership firm.

         


    Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles.

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