Conversion into partnership firm
KHUMESH
(Querist) 06 November 2013
This query is : Resolved
We have purchased land for setting up factory in name of my wife and my brother-in laws wife . earlier there was registration of factory in name of Mr. A , Now it was registered in name of my brother in laws wife as sole proprietor of company. We want to convert it into Partnership firm where myself and my brother in law only will be acting partner for which we have invested money in purchasing land and machinery.Can we make partnership deed including four partner as myself, my wife, my brother in law and his wife but acting partner will be myself and my brother in law . Although TIN number has been allocated to my brother in laws wife. We want to make all possible inclusion of property such as land , machinery in name of firm.So by making partnership deed in such a way it can become possible. Further we want to get loan from bank for operation . What are the steps for making it partnership firm .
Dr J C Vashista
(Expert) 07 November 2013
Yes you can make partnership deed amongst any 2 to 7 partners and acting partner can be of your choice, which shall be incorporated in the Memorendum of Associaton and Articles of Association
KHUMESH
(Querist) 07 November 2013
Thank you Sir, the same TIN will work or will it have to be converted to acting members or in the name of firm .
Rajat Bindal 09917149977
(Expert) 07 November 2013
A proprietorship firm has no legal status other then its proprietor,therefore the TIN is issued in the name of the lady.You have to apply for fresh TIN. A partnership firm can be created by contributing immovable property in the name of firm but it should be specifically mentioned in partnership deed. Any 2 partners can be given power to work and resp be kept as sleeping partners.The bank will give you loan on properly drafted partnership deed. Don't forget to get the firm registered before registrar of firms of the area where the office of firm is situated.
KHUMESH
(Querist) 07 November 2013
Thank you Sir, After formation of Partnership deed and lady being a partner ( either active or sleeping ) ,can this TIN will work for firm?.
Dr J C Vashista
(Expert) 09 November 2013
Apply and obtain afresh TIN in the name of partnership firm
