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?
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.
You must be logged in to reply to this topic. Log in/Register