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John Miller (Business Strategist)     11 March 2020

Can one person register two companies in india?

Can one person register two companies (one is a proprietorship firm, another is a partnership firm) in India?



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 6 Replies

Naresh Dhanjal   11 March 2020

yes you can register two firms

abhi jani   11 March 2020

Yes, one person can run two businesses i.e. Proprietorship and Partnership firm at the same time with a condition that the partnership deed does not bar such type of business. Normally there is no such bar of doing other business but running a business with same nature of object can cause difficulties.

So there must be clarity in the partnership deed regarding such clause to avoid any discrepancy.

If you are looking for registering your business under Sole Proprietorship or Partnership Firm.

1 Like

Raj Kumar Makkad (Adv P & H High Court Chandigarh)     14 March 2020

Yesis the sole answer to your query. A person can be a partner to as as may many partnership as he wish and he is also free to be a proprietor simultaneously to the firms and companies inumberable.

Harish varun   11 November 2024

Yes, one person can register both a proprietorship firm and a partnership firm in India. A proprietorship is a single-owner business with simpler registration, while a partnership involves two or more individuals sharing profits and responsibilities. Each firm has its own registration and compliance requirements, but there’s no restriction on owning both types of businesses. The individual just needs to fulfill the legal and tax obligations for each separately.

 

Sankalp Tiwari   16 November 2024

Hello,

Yes, as per Indian law, one man can get registered and carry out both proprietorship business and be a partner in a partnership firm. Neither the Indian Partnership Act of 1932 nor the rules of sole proprietorship barred your management of multiple businesses. You should however keep these separate distinct clear lines for tax filing, record keeping, and following statutory compliance, respectively.

For example, in Registrar of Companies v. S. Chandrakumar, a court reiterated the principle of transparency and compliance. As you are allowed to run more than one business, be mindful that you shall run each business in such a way that it adheres to the financial and regulatory norms applicable to it. Thus for every business you have, you can keep track of all obligations easily starting from tax compliance.
Please let me know if you have any questions at sankalpt44@gmail.com

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     17 November 2024

When you use the word company it is a joint stock company. Proprietorships and partnerships are not companies under the Companies Act. You can register them as companies if you want to claim limited liability. One can hold any number of businesses as sole proprietor. The requirement of regration would depend on the trade. Partnership firms may require  partnership deeds registered or unregistered.


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