Can partner in partnership firm rent his premises to firm
(Querist) 11 January 2022
This query is : Resolved
In a partnership firm, there are two partners who want to to start a small firm/business. For the purpose of opening office, and registration of GST, there is a need off rent deed as proof of address of the business.
My query is, 1. Can one of the partner in partnership firm rent his premises to the partnership firm? 2. If managing partner of the firm and property being given on rent are the same, then who will sign as tenant on behalf of partnership firm. Will he sign on behalf of the both?
(Expert) 11 January 2022
1. & 2. Yes. But if any partner has a building and gives one room without rent for their business, then he may give a Notarized Affidavit on stamp worth Rs.10/- is sufficient and no rent deed necessary. But ask at the office of the Registrar of Firms concerned as some executive instructions are different from one State to another State.
Dr J C Vashista
(Expert) 12 January 2022
I agree with senior expert opinion and advise of Mr. Kavksatyanarayana. One of them (who is not landlord) shall sign as tenant.