AMIT KUMAR (Partner) 27 July 2013

How to work as a partner in a properietory firm

Hi,

I want to understand a situation. kindly help by replying to this post.

There is a properietory firm say X is working as a contractor in some state. Suppose he want to start a new project in other state with somebody say Y as a partner. but can't make Y as a partner in all his project as his partner ship with Y is for a particular project.

They want to operate this new project with the same firm name only.

Kindly help how X can give partnership to Y only for a specific project. how they can open a new bank a/c having joint a/c.

Also note that there is no a specific pan card on firm name. X is working with his own Pan no. only as it was a prop. firm.

Please guide the way.

Regards.

AKV

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4 Replies

Advocate Rohit (Advocate) 27 July 2013

you need to setup a partnership firm with the same name through partnership deed or work as an associate of the proprietorship firm.

But you would be required to open a separate bank account for the same for signing auhority purpose.

Regards,

Advocate Rohit Dalmia

9324538481

Mumbai

Nadeem Qureshi (Advocate/ nadeemqureshi1@gmail.com) 31 July 2013

Advocate Rohit is rightly advise, nothing left to add

sanjay kumar (BE/ LLM in Corporate Laws) 02 August 2013

In your case, it is not partnership, its simple a working arrangement for a particular project. A firm cannot have different partners for different jobs.

The Proprietorship Firm is a legal person in itself. It can sign agreements, open accounts, buy properties in its name etc. So in your case, the proprietorship firm has to enter a working arrangement with Y(who may be individual or a Firm) clearly indicating the roles and responsibilities of both the parties and specific mention that this relationship is only for this and this project or any future future project if decided specifically. The proprietor of PF will sign the agreement on behalf of the firm and the other party will sign as per its status-individual or firm. A separate bank account is to be opened in the name of the Prop.Firm with Mr.Y as joint holder. The account can either be operated E or S Basis or Joint basis.

Careful drafting of the words is of utmost importance in such cases.

Adv S K Gupta (Advocate High Court) 03 April 2015

One firm cant have two PAN,

Its possible to have a partnership for single project but this will be a separate firm but can have the same name or you can go for a consortium mode.