• Fraudulent registration of partnership firm (not company) and its fake claims

PLEASE REFER TO SEC 61 & SEC 63 OF THE INDIAN PARTNERSHIP ACT.
Bckground to qstns:
1.A private partnership firm(NOT company)has been registered wth the IGR,Odisha & has obtained a PAN Number.
2.At the IGR Odisha it has submitted one partnership deed & has submitted a different one to IT dept.
3.The name of the partnershp,the place of business & nature of business are same in both partnership deeds,bt one partner differs out of two partners constituting the firm in the 2 diffrnt deeds.
the deed submitted to the IT dept.,is not registered.the othr one is registerd.
4.The firm is,as i heard,going to claim that the presence of 2 deeds is not illegal bt because the unregisterd deed belongs to its sister concern/branch office.
PLS ANSWR clearly-

1.Shud the presence of a branch office/sistr concern not be recorded in the registerd deed(Sec 61&63).
2.Can a branch office/sistr concern hv exact same place of business?Hw is a branch diffrnt from main office then?
3.Shud a brnch office/sistr concern hv a separate partnership deed?
4.Has not the PAN regn been given to the sister concern & not the main firm?Does tat not mean the main firm is without a PAN regn,which is mandatory?
5.Shud a branch office/sistr concern hv a separate PAN regn or the PAN regn of the main firm will suffice?
6.Hw can a sistr concern hv diffrnt partners from the main partnershp firm,when the identity of the firm is based on a particular collection of partners?A separate collection of partners shud mean a diffrnt firm.
Asked 7 years ago in Business Law

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8 Answers

sister concern can have same registered office

2) sister concern should have separate partnership deed

3) PAN is mandatory for firm

4) sister concern should separate PA and TAN

5) sister concern can have separate partners

Ajay Sethi
Advocate, Mumbai
99781 Answers
8145 Consultations

My answers as follows:

1.Shud the presence of a branch office/sistr concern not be recorded in the registerd deed(Sec 61&63).

Ans: Yes, any thing which contradicts the other should not be mentioned. Be careful.

2.Can a branch office/sistr concern hv exact same place of business?Hw is a branch diffrnt from main office then?

Ans: Yes it can have branch offices but not sister concerns.

3.Shud a brnch office/sistr concern hv a separate partnership deed?

Ans. No. partner not allowed to have separate branch or sister concern.

4.Has not the PAN regn been given to the sister concern & not the main firm?Does tat not mean the main firm is without a PAN regn,which is mandatory?

5.Shud a branch office/sistr concern hv a separate PAN regn or the PAN regn of the main firm will suffice?

6.Hw can a sistr concern hv diffrnt partners from the main partnershp firm,when the identity of the firm is based on a particular collection of partners?A separate collection of partners shud mean a diffrnt firm.

Ans; Sister concern cannot have different partners.

Please get it rectified or merge with registered partnership firm. Submit the copy of regd. Partnership deed to the IT dept.

A partnership is easy to form as no cumbersome legal formalities are involved. A partnership is formed by an agreement, which may be either written or oral. When the written agreement is duly stamped and registered, it is known as "Partnership Deed" which may be registered or not registered. Ordinarily, the rights, duties and liabilities of partners are laid down in the deed. But in the case where the deed does not specify the rights and obligations, the provisions of The Indian Partnership Act, 1932 will apply.

Kishan Dutt Kalaskar
Advocate, Bangalore
6230 Answers
499 Consultations

1. Firstly sister concern can have same office, under section 61 if changing place of business intiation to registrar is necessary not changing the deed, registrar can update the address.

61. Noting of closing and opening of branches.—When a registered firm discontinued business at any place or begins to carry on business at any place, such place not being its principal place of business, any partner or agent of the firm may send intimation thereof to the Registrar, who shall make a note of such intimation in the entry relating to the firm in the Register of Firms, and shall file the intimation along with the statement relating to the firm filed under section 59. State Amendment.

2. Sister concern should have different PAN different deed though having same office. The place is main office for sister concern then.

3. The sister concern have different deed.

4. Yes each partnership firm has to obtain a PAN mandatory from IT department.

5. If branch PAN will suffice but if sister concern require a new PAN.

6. Sister concern are always different firms it is termed as sister concern because it is completely owned by the parent firm.

Now as company firms are not separate legal entity but aate know from partners so a sister concern can have different partners it just they are doing business together.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

1. Not required.

2. In the partnership model, it can be the same. But if you are able to show that the same has been done for some malafide reason then action can be taken.

3. Yes

4. True, the PAN is with the second firm and the first firm till date has no PAN

5. Share the content of both the partnership deed so that a more concrete advise can be rendered.

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

1. Section 61 or 63 is not making any sense to your query.

Section 61: 61. Noting of closing and opening of branches.—When a registered firm discontinued business at any place or begins to carry on business at any place, such place not being its principal place of business, any partner or agent of the firm may send intimation thereof to the Registrar, who shall make a note of such intimation in the entry relating to the firm in the Register of Firms, and shall file the intimation along with the statement relating to the firm filed under section 59.

Section 63(1): (1) When a change occurs in the constitution of a registered firm any incoming, continuing or outgoing partner, and when a registered firm is dissolved any person who was a partner immediately before the dissolution, or the agent of any such partner or person specially authorised in this behalf, may give notice to the Registrar of such change or dissolution, specifying the date thereof ; and the Registrar shall make a record of the notice in the entry relating to the firm in the Register of Firms, and shall file the notice along with the statement relating to the firm filed under section 59.

Is there any change in the partnership firm other than bringing in the sister concern firm, that too it is not registered.

if he has defrauded government, then sever action in this regard as per companies act can be initiated by the authority.

2, 3. Separate partnership deed for main company and the branch office is not needed.

4., 5 This observation may be included in your complaint letter.

6. Yes, it is wrong to have different partners in the branch but sister concern can have different partners.

T Kalaiselvan
Advocate, Vellore
89981 Answers
2492 Consultations

1. It should be informed to the registrar for its cognition.

2. It is only silent but there is no prohibition about it.

3. There is no legal invalidity to it.

4. If it is causing any concern then you prefer a complaint about it to the concerned authority.

T Kalaiselvan
Advocate, Vellore
89981 Answers
2492 Consultations

there is no bar to have sister concerns

2)there would be separate partnership deed for sister concern

3) 3 PAN with same name and same place of business cannot be generated

Ajay Sethi
Advocate, Mumbai
99781 Answers
8145 Consultations

1. It should be informed.

2. there is no bar on it, partnership firms can have sister concern by having partnership in other firm or doing business.

3. A person can be partner in multiple firms with different partnership agreement with same or other person.

4. No 3 PAN card on same name and same address cannot be generated

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

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