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Justin Raj (Proprietor)     03 November 2011

Firm and company, difference??

Dear experts,

I want to know the difference (technical) between a FIRM and a COMPANY.

I had registered a business , a partnership ( not registered) and registered as a firm with a name. Soon after we recieved the aknowledgement from the registration authorities ( Registrar of firms ) with registration number and name accepted, my partner got a good offer from middle east and he had to leave. I have not intimated the registrar about the non functioning of the business as the partnership. As I had to run the business, I continued business as a proprietorship concern.  My friend, who was a partner has no objection or any part in the business. I used the same name of the business as it was already been in the market and was well accepted.  Is it technically wrong? if so, what should I do to rectify it??

pls advice..

Justin



Learning

 3 Replies

SURESH GODBOLE (ADVOCATE)     04 November 2011

Patnership necessarily means Two or More

Partnership Firm can go on but  Number of Partners can change

Get a new Partnership prepared showing one of your family member as a Parner , Your friend resigning and quitting , Give this Agreement to the Registering authorities to sustitute the previous one . The Partnership  will be restructured , Your Partnership Firm will go on as it is not  dissolved

Justin Raj (Proprietor)     04 November 2011

Sir,

What I want to know is, after my friend left the partnership ( we have dissolved it) is it wrong to continue doing business in the same firm name as proprietory concern? I have not intimated the registrar of firms about the dessolved partnership. Is it a problem??  pls advice..

SURESH GODBOLE (ADVOCATE)     04 November 2011

I feel its difficult to change nature from Pqartnership to Propritorship  keeping the NAME OF THE FIRM SAME

The NAME HAS BEEN BLOCKED

You will have to either register A  propritorship firm in a different name of make any one a partner in same Firm

What has happened to the Bank Account in that Cos Name ]

Are you operating it

If its so , then if you want to dissolve you have no right to continue the Bank A/c

Only two options

Dissolve the Partnership , also close the Firm , The name must not be used , bank a/c be closed

You can use the same name if you make another person a Partner

If you want to have a propritorship  , register a firm in a different name


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