Harinder (na) 24 September 2011

Private limited company & proprietorship

I have two queries:

1) Can a Private Limited Company and a proprietorship firm form a Partnership? I know a private limited company is an artifical person whereas proprietorship firm has no such identity.Is there any way, by which they can be a part of a business relationship.

2) If a private limited company want to invest in a proprietorship firm, what all legal formalities to carried out.

Thanks in advance.

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2 Replies

Raj Kumar Makkad (Adv P & H High Court Chandigarh) 24 September 2011

1. Yes. Both can form a partnership firm. This issue has been discussed in LCI a number of times.

2. A formal resolution is required to be passed in consonance with the aims and objects of such company.

SANJAY GAUR (DIRECTOR) 24 September 2011

I am going to be a director and applied for the same In ROC i have 2 more people directors and all share 33% each in profits.Can those 2 kick me out from the compnay without notifying me.Signing authority belongs to 1 person included in the director.