Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Kalpana.S (-)     31 October 2008

Restriction of partners

Is there any restriction under the Indian Partnership Act with regard to the number of partners in a firm?


Learning

 6 Replies

Shree. ( Advocate.)     31 October 2008

Dear Kalpana,


    Since partnership is ‘agreement’ there must be minimum two partners. The Partnership Act does not put any restrictions on maximum number of partners. However, section 11 of Companies Act prohibits partnership consisting of more than 20 members, unless it is registered as a company or formed in pursuance of some other law.


 

ca.bhupendrashah (FCADISA)     31 October 2008

try reading bare acts for such Q.

Manish Singh (Advocate)     31 October 2008

the act restricts the number of partners. in case of banking business, there cant be more than 10 partners and in other business not more than 20.

Sankaranarayanan (Advocate)     01 November 2008

yes mr manish singh is correct


 

N.K.Assumi (Advocate)     02 November 2008

Atleast two persons are necessary but law lays down a maximum figure beyond which the prtnership would become illegal. The maximum number is fixed at ten in case of  banking business and twenty in case of other business.

Y V Vishweshwar Rao (Advocate )     11 March 2009

Under  LLP ACT , the  nubmer of Partners is not limited   in LLP partnerships /  the present Partnership Firms can be converted as LLP -  it may be  from April 2009


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register