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…
Limited companies are of two kinds. They can be classified as (i) Private Limited companies (ii) Public Limited companies. A private limited company is a form of privately held business governed under the provisions of the Indian Companies Act, 2013. The minimum number of members required to form q private limited company is two and…
(Last updated on August 04, 2024) Know Your Customer (KYC) standards are designed to protect financial institutions against fraud, corruption, money laundering, and terrorist financing. KYC involves several steps to: establish customer identity; understand the nature of customers’ activities and qualify that the source of funds is legitimate; KYC involves several steps to (i) establish…
A current deposit account, commonly known as a current account, is a type of demand deposit account specifically designed to accommodate frequent and high-volume financial transactions. These accounts are primarily utilized by business entities and individuals engaged in regular, large-scale monetary operations. Current accounts offer a variety of advantages tailored to the operational requirements of…
A trust is a fiduciary relationship between the trustor and the trustee. A Trustor is just the person who creates and opens a Trust. A trustee is a person or an entity created and entrusted with property/assets to deal with for the benefit of a certain person or persons called ‘beneficiaries’. A trust is created…
The sole proprietor is an individual owner of a business or contract. He/ She are liable to pay liability of the proprietorship as personal liability and also pay income tax on personal income earned through business. As such many businessmen do business or trade on their personal name as separate business name is not necessary.…
A current deposit account, commonly referred to as a current account, is a type of demand deposit account primarily designed to facilitate frequent and high-volume transactions typical of business establishments. These accounts cater to the needs of businesses and individuals engaged in regular financial operations. Eligible Entities for Opening a Current Account The following categories…
HUF is the acronym for Hindu Undivided Family. A HUF can be formed by members of a family, wherein the members are lineal ascendants or descendants of Hindus, Buddhists, Jains, and Sikh religions. The eldest member becomes the Karta of HUF. Other members of the family are called coparceners. The coparceners share equally with the…
A current account is a form of demand deposit account, designed for running transactions of a business establishment. The documents requirement at the bank for opening a current account depends upon how the business entity has been established (viz formed by an Individual owner or Partnership or club, association, society or Limited Company or Trust…
Karta (Manager) of HUF has sole authority over the HUF account and also over every transaction on behalf of the HUF account, made by each member of the family. Therefore, it is necessary to appoint a new Karta to allow operation in the account after the death of the Karta to allow further operation in…