ernest smith (none) 09 May 2014

Is multiple business under one firm name possible..

I and 3 friends of mine want to open a partnership firm. but the problem is that the business that we want to carry out is not a single one but instead is four in one kind of. i want to run an educational institute. My second friend wants to run a catering business, my third friend wants to do building construction work etc. and my last friend is into travelling etc. but we all four are linked through me cause i play the role of RNA (research & analysis) in all of their work. we were running small business individually but now we want to bring all four under one name and form some kind of partnership firm under one heading like for example "Surya Groups"

My first question is that is it possible to register a firm of such nature

And secondly after registering it (Surya Group)can we operate the other business by just adding the extension like Surya groups catering, Surya Groups Construction and Surya Groups Educational centre or do we also have to register all four individually.

My basic question is that is it possible to conduct all four business under one name. ?

I hope someone can answer asap cause we need to register asap.

Thanks to everyone in advance who helps....

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8 Replies

K.K.Ganguly (Advocate) 09 May 2014

1. Yes, why not?

2. You can form a Company in the name & style of 'Surya Groups' & get the Company registered as per the Act,

3. While registering the Company, you can specify your different businesses proposed,

4. You can seperate those exclusive businesses as seperate Divisions,

5. There are several such examples viz., earlier it was only one company by name HMT Ltd. under which there were several divisions like Machine Tools Division, Watch Division, Lamp Division, Tractor Division etc. (These seperate divisions became seperate companies much later when the business grew),

6. You can also maintain seperate profit & loss statements divisionwise to ascertain the contribution of each division to the profit/loss of the Company.

ernest smith (none) 09 May 2014

so if i register the company would i have to mention the complete details of the divisions in the registration process or only in the partnership deed...

T. Kalaiselvan, Advocate (Advocate) 10 May 2014

You are advised properly, for further details you may consult your auditor or a consultant in the field, because besides the opinion rendered there are other formalities to be observed which will be properly guided by the consultant only as per the circumstances.

K.K.Ganguly (Advocate) 10 May 2014

1. You collect the required application form for getting your Company registered,

2. In the said form. you will find that your are required to provide the information about the business you propose to do,

3. Mention the said businesses only like construction, catering etc. You do not have to givre details of your divisions,

4. After registering your Company, you can form divisions based on your business streams as suggested earlier.

V. VASUDEVAN (LEGAL COUNSEL) 10 May 2014

Formation of a Company requires detailed formalities like memorandum and articles of association, name search (for availability of the proposed name), incorporation and please contact a practising company secretary who will take care of the complete formalities. for details on formation, please visit mca.gov.in /mca/21

vasudevan