Position of a partnership firm when a partner dies or retires or becomes insolvent

Section 42 of the Indian Partnership Act, 1932 (“Act”) provides for dissolution of partnership on occurrence of certain contingencies which includes ‘death of the partner’ or ‘adjudication of a partner as an insolvent’ or if constituted for a fixed term, by the expiry of that term, etc.as one of those contingencies. However, the partnership need…

Opening of current accounts in banks

A Current account in a bank is a running account (also known as demand deposit) maintained in banks mostly for the purpose of business. The following types of entities are eligible to open current accounts in banks. Individual/Proprietorship Account Hindu Undivided Family (H.U.F) Account Partnership concerns/Limited Liability Partnership (LLP) Limited and Private Companies Trust Account…

Bank Accounts of Government/Semi Government departments:

Government departments or semi Government departments need a bank account to carry out the financial transactions of the departments. Government business like Salary payments, Pension payments,Fee collection, tax collection,PPF, Sukanya samriddhi, Senior citizen savings scheme,etc.are routed through banks.Most of the public sector banks eying for government business as they they get huge amount of deposits…

What are the advantages in registration of a partnership firm?

Registration of a partnership firm is not compulsory under law. It is left to the partners of the firm to register their firm or not. However,the advantages of registration of a partnership firm   are that the registered firm offers an irrefutable legal proof of the existence partnership and the composition of partners, their address,…

What is LLP ?

LLP is acronym to the Limited Liability Partnership (LLP). LLP is an entity registered under Limited Liability Partnership Act, 2008. The liability of an LLP is restricted to its assets and partner’s liability is limited to their share contributed in the partnership. Thus partner’s liability in LLP is similar to that of the shareholders of…

Who are called as active partner and sleeping partner in a partnership?

In partnership businesses all the partners need not actively participate in the business activity of the firm. According to their involvement  in the business they are called active  partner/ managing  partner and sleeping partner/ dormant partner. Active Partner or managing partner: An active partner is the capital investor in the partnership who actively involves himself…

Aadhar mandatory for opening bank account,large transactions

The Union government has made Aadhaar number mandatory for opening the bank accounts, as well as conductiong financial transactions of Rs.50000.00 and above.The  existing customers of banks who have not linked Aadhar number issued by the Unique Identification Authority of India (UIDAI) to their bank is now required to link the same before December 31,…