Advocate IN partnership

shashank jain (Querist) 08 February 2010 This query is : Resolved
hi
I am a Advocate but i am only in taxation practice.I want to start a share sub brokership business. for this i wish to enter into Partnership with a friend of mine.

My query is tht can i becume a partner for the abovesaid business.

And how abt newly introduced limited liabilty partnership firm.I am prefering to becume a partner forming a limited liabilty partnership.

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Devajyoti Barman (Expert) 08 February 2010
Being an advocate under the auspices of Bar council Of India , entering into any business venture other than legal profession is expressly barred by the Advocates Act.

Parveen Kr. Aggarwal (Expert) 08 February 2010
Section 49(1) of the Advocates Act, 1961 authorise the Bar Council of India to make rules inter-alia for:

(ah)The conditions subject to which an advocate shall have the right to practise and the circumstances under which a person shall be deemed to practise as an advocate in a court; and

(c) The standards of professional conduct and etiquette to be observed by advocates;

The Bar Council of India in exercise of the ibid powers have framed rules Chapter II, Section VII whereof provides as follows:

47. An advocate shall not personally engage in any business; but he may be a sleeping partner in a firm doing business provided that in the opinion of the appropriate State Bar Council, the nature of the business is not inconsistent with the dignity of the profession.

48. An advocate may be Director or Chairman of the Board of Directors of a company with or without any ordinarily sitting fee, provided none of his duties are of an executive character. An advocate shall not be a Managing Director or a Secretary of any company.

49. An advocate shall not be a full-time salaried employee of any person, government, firm, corporation or concern, so long as he continues to practise, and shall, on taking up any such employment, intimate the fact to the Bar Council on whose roll his name appears and shall thereupon cease to practise as an advocate so long as he continues in such employment.

50. An advocate who has inherited, or succeeded by survivorship to a family business may continue it, but may not personally participate in the management thereof. He may continue to hold a share with others in any business which has decended to him by survivorship or inheritance or by will, provided he does not personally participate in the management thereof.