• Starting new business under Partnership Firm

I have registered a new partnership firm at Bangalore. I have the registration certificate and notarized deed of the firm. I want to open a Salon and beauty center under this partnership firm. Eventually I will also apply for Trade license at BBMP office. Am I allowed to open the shop and run business with partnership registration without Trade license? Trade license takes time, so I want to know whether I can open the shop as i have partnership registration certificate and the type of business mentioned within the registered Deed.
Asked 8 years ago in Business Law

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9 Answers

1.If the partnership deed allows to tart business of that nature then the firm can cerainly start the same.

2.Do note that you have to two identify,one as partner of the firm and another as private individual.

3.if you in your individual identity wish to start the business then you can do so even if start of such business is prohibited in the partnership deed .

4.If it is mentioned then you can start it but after getting trade license and registration under shop and establishment act.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

You need licence under shop and establishment act of your state to open salon and beauty centre

2) merely because you have partnership registration certificate is not sufficient to open a salon and beauty centre

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

partnership and trade license both are different things. a partnership firm is an agreement between person to share profit of a business. trade license is requisite condition for a certain class of business. I think trade license is not required for running of a salon because no trade will commence there but only service shall be provided there.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

I think you should contact a CA for this purpose.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

You should not start the business before you ha e the licence in your hand

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

I meant to say when starting of this business is not possible. Since in your case the type of business is mentioned you can start the same but only after getting approval from the local authority .

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

You can not start a new business wo trade license, you might end up facing legal issues, it is advised that you wait for the trade license and then only start the business.

regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Please be aware that the registration of partnership firm is not a licence to carry on the proposed business through the firm.

The appropriate license from the competent authority has to be obtained before commencing your business or else you may have to face unnecessary harassment and problems from the respective offices.

There are chances booking the firm for carrying out illegal business owing to not obtaining the licence.

You may apply for licence and have the receipt at the time of starting the operations of the business.

This may shield you from any such problem that may arise.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

I have registration no and certificate. Also has the deed where nature of business is clearly mentioned. I and my partner together want to start the business. We are also applying for Trade license but it will take minimum 2-3 months to process. I want to know whether we are allowed to start the business during this 2-3 month time before we receive the trade license.

Legally speaking, though you have made a mention in the registration certificate application and also in the partnership deed the nature of business to be carried on, without a proper trade licence you may not be allowed to start the same.

Technically, since you have already applied for the licence and also have an acknowledgment for the application made, owing to the urgency of the business, you may start the business anticipating the grant of licence. But you should be able to convince the authority in the event of any enquiry or legal action in this regard.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

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