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Company law Department has clarified the position regarding two companies entering into partnership in circular no. 1/81-CL-V dated 14th September 1981
A question has been raised whether an incorporated company can enter into a partnership with some other person or some other company. The matter has been examined by this department in consultation with the Department of Legal Affairs and I am directed to say that prima facie a company entering into a partnership with some other person or some other company would be ultra vires and will be against the principle that a particular company or an incorporated body cannot lawfully employ funds for purposes not authorized by its constitution which would normally be the memorandum and the articles of association. However, a company or an incorporated body, if so authorized by its constitution, can enter into partnership with an individual person or with another company irrespective of nationality and residence. This would, however, require the company to adopt very special articles since many of the provisions of the Partnership Act would be difficult to apply to such a partnership. In view of this, while considering applications for registration of firms with bodies corporate as partners under the Indian Partnership Act, 1932, the State Governments should examine the applications before them and find out whether the memorandum and articles of association of the applicant incorporated companies contain any special articles which authorise the incorporated companies to enter into partnerships and the articles also take care of the possible anomalies which have been pointed out in the Calcutta High
Court's ruling in the case of Ganga Metal Refining Company P. Ltd. v. Income-tax Commissioner West Bengal, (1968) 38 Com Cases 117 : AIR 1967 Cal 429."
In short we can say that companies can enter into partnership if they are so authorized by their memorandum of association. Otherwise company entering into a partnership with some other person or some other company would be ultra vires.
Aditya Deo
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∙ 13y ago
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Steps in formation of a company?
Step one Decide between Companies House and Private Companies Step two Decide which type of limited company you want to form: - limited company by share - limited company by liability partnership - limited company by guarantee Step three Check if you desired company name is available. (it needs to be unique) Step four Ensure that you have all required documents - a registered office (cannot be a PO box) - director's details - shareholder's details Step five make a payment Fill the details Depending on where you have submitted your details, it takes between 3 hours and 2 days. Source: https://www.rapidformations.co.uk/company-formation-checklist/
What is the Uniform Partnership Act?
The Uniform Partnership Act, recognized by more than forty states, states that "a partnership is an association of two or more persons to carry on as coowners a business for profit" (UPA 6[11]).
How was the fur trade a partnership between the traders and aboriginal peoples?
A trade is a form of medium of exchange, hence goods sold from one place to another are exchanged between two partners in the different area.
What are the similarities between private and public enterprise?
Both companies are incorporated, meaning that they have separate legal identies to the owners of the business, they also have limited liability, where shareholders will only lose the amount of money they invested into the business, if the business became bankrupt. To set up these companies you must sent two documents, a Memorandum of Association, giving the name, address and objectives of the business, along with an Article of Association, describing the internal rules of the company i.e. how it will be run. The final similarity is that both companies are owned by shareholders, therefore the more shares you own in these businesses, the more control you have of these businesses. The difference here is that in private limited companies, all existing shareholders must agree before any more shares in the business are sold, and in public limited companies, anyone can buy shares, if the company can find people who want to sell their shares for them.
Can girls be bad at sex?
Sex is a partnership between two people if they have a rapor then the sex is particularly good. but remember sex is like piza when its good its great when its not its usually still ok.
Features of limited partnership?
limited partnership has two partners with different liability;general partners and limited partners.
In a two member LLC how do you file taxes to be treated as a partnership?
LLC is Limited Liability Company. It's allowed by state statute. But the IRS doesn't recognize LLC as a classification for federal tax purposes. Under IRS Default Rules, a Limited Liability Company with at least two members is considered as a partnership. Form 8832 is Entity Classification Election. An LLC with two or more members would only have to file Form 8832 if the LLC didn't want to file as a partnership. As a partnership, the LLC would file Form 1065 (U.S. Return of Partnership Income). For more information, go to www.irs.gov/formspubs for Publication 541 (Partnerships) and Publication 3402 (Tax Issues for Limited Liability Companies).
What is the difference between LLC and Enterprise?
An LLC is a legal form of a company that blends elements of partnership and corporate structures. An enterprise is one company or business. Start-up companies are usually referred to as an enterprise.
What is the difference between a General Partnership and a limited Partnership?
In a limited partnership, a limited partner can be held liable for only the amount of money he or she invested in the company. In a general partnership, the individual liability for debts is the partner's share of the total amount of debts accrued by the partnership. In the USA individuals wishing to operate a business under a partnership, can choose to form three types of partnership: general partnership, limited partnership and limited liability partnership. In a general partnership the partners are responsible for all aspects of the business including the debts of the partnership. In a limited partnership there are two types of partners - general and limited. Each type of partner has different rights and responsibilities. Generally speaking, there is a limit on the liability of a limited partner, while the general partner's liabilities are not limited. A limited partnership consists of one or more general partners (i.e., those who are generally liable for the business) and one or more limited partners (i.e., those who have limited liability). If the statutory requirements are not followed, a limited partnership will be treated as a general partnership; therefore, it is important that you consult with an attorney in creating a limited partnership. LPs are created by filing an statement of registration with the Secretary of State, Corporations Division.For more information about General Partnerships and Limited Partnerships, you can follow the link below.A limited liability partnership protects the personal assets of the partners from creditors. In a traditional partnership, it may be possible for creditors to collect debts from the personal assets of the partners.
What two types of business structures do not offer limited liability to owners?
Partnership
Which two types of business structure doesn't offer limited liability?
partnership
How do general partnerships and limited partnerships and limited liability partnerships differ?
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Does a joint venture have to be incorporated?
No, a joint venture can take many forms. It may simply be a contractual relationship between two companies, or it may be a separate corporation, partnership or limited liability company.
What does PLLC stand for after an attorneys name?
PLLC stands for Professional Limited Liability Company. It indicates that the attorney practices law through a limited liability company structure, meaning the attorney's personal assets are protected in case of legal claims against the business.
What type of business is owned by two or more people?
It could be a Partnership, or a Corporation or Limited
What is a business owned by two or more person?
A business owned by two of more people is called a partnership. There are general, limited, and limited liability types of partnerships.
How do you establish partnership between two companies?
Is it possible to establish a partnership between two companies? I have a company that want our company to provide professional services but the company do not have capital to purchase the services. Therefore, we want to exchange our professional services for stock option and cash profits.
