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.
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