Understanding different types of partners we notice in a partnership?
In partnership businesses we find different types partners viz. nominal or ostensible partner, sub-partner, partner by estoppel or holding out, partners in profits only, minor as a partner, others. The different kinds of Partners that we may normally notice in Partnership Firms are as under. Nominal Partner: When a well-known personality in the society who…
Read article
What is the difference between partnership at will and fixed term partnership?
The partnership firms can be commonly distinguished as a general partnership and limited liability partnership (LLP). The General Partnership can be further divided into three groups’ viz. partnership at will, particular partnership and fixed term partnership. The agreement for PARTNERSHIP AT WILL is formed for carrying on general business and it does not specify the…
Read article
Difference between Subsidiary company, Sister concern, Associated company,Joint Venture,Conglomerate and Group of companies
A Subsidiary company can be described as an enterprise, the management of which is controlled by a parent company. The parent company is one which has one or more subsidiaries. In all cases the parent company will hold more than half of the voting power of the subsidiary company and controls financial and operating policy…
Read article
What are the documents required for opening Current Accounts in banks?
As per the existing RBI guidelines, the banks cannot open the current account of prospective customers without obtaining a ‘No-objection letter’ from the lending banks and in case no response is received from the existing bankers after a minimum waiting period of a fortnight. The Reserve Bank of India in their notification informed that they…
Read articleWhat are the valid address proof documents for KYC?
The Government of India has provided additional relaxation for the purpose of address in addition to the relaxation in proof of identity under simplified measures of PML rules. Accordingly RBI has notified that the following additional documents are deemed to be Officially Valid Documents (OVD) for proof of address. Utility bill which is not more…
What is relaxed KYC norm for proprietary concerns?
In case of opening accounts of proprietorship concerns, apart from customer identification procedure as applicable to the proprietor, banks and financial institutions call for and verify the activity proof of the concern. The default rule under KYC is that any two documents, out of following documents listed in paragraph 2.5(h) of RBI Master Circular should…
Read article