Who can be a Partner in a Partnership Firm

A Partnership is a relationship between persons who have agreed to share the profits of a business carried on by all or any of them acting or all. In India, it is governed by the Indian Partnership Act, 1932, which extends to the whole of India except the State of Jammu and Kashmir. It came into force on 1st October 1932.

A partnership agreement can be entered into between persons who are competent to contract. Every person who is of the age of majority according to the law to which he is subject and who is of sound mind and is not disqualified from contracting by any law to which he is subject can enter into a partnership.

Who can be a Partner in a Partnership Firm?

To become a partner you need to be a major and should be of sound mind. You should not be disqualified from contracting in any way by the law. However a minor can also become a partner. In such a case scenario, all the partners should give their consent. The minor won’t be able to participate in the workings; however, he will be entitled to the benefits of a partnership. He is personally not liable for any act. He cannot sue other partners anyhow.

• An Individual
• Firm
• Hindu Undivided Family
• Company
• Trustees
• Individual

An individual, who is competent to contract, can become a partner in the partnership firm. If there are more than two partners in a firm, an individual can be a partner in his individual capacity as well as in a representative capacity as Karta of the Hindu undivided family.

• Firm

A partnership firm is not a person and therefore a firm can not enter into a partnership with any firm or individual. But a partner of the partnership firm can enter into a partnership with other persons and he can share the profits of the said firm with his other co-partners of the parent firm.

• Hindu Undivided Family

A Karta of the Hindu undivided family can become a partner in a partnership in his individual capacity, provided the member has contributed his self acquired or personal skill and labour.

• Company

A company is a juristic person and therefore can become a partner in a partnership firm if it is authorized to do so by its objects.

• Trustees

Trustees of private religious trust, family trust and trustees of Hindu mutts or other religious endowments are juristic persons and can therefore enter into partnership unless their constitution or objects forbid.

Here in this article, we have understood that who can be a partner in a Partnership firm, it will surely be useful for you to grow your business. If you wish to go for Partnership firm registration then you should visit the Online Partnership firm registration.

Before going ahead with the registration process, a business has to check company name availability to ensure that the proposed name selected does not contain any word as prohibited under the Companies Act, 2013. You can conduct a company name check here.