in many states in india only agriculturist can buy agricultural land 

2) hence not advisable to buy land in firm names wherein only agriculturist can purchase agricultural land 

there are 3 options:

1. a partnership firm under the Indian Partnership act, 1932

2. a Limited Liability Partnership firm under the LLP Act

3. a private ltd. company under the companies act 2013

in case of 1 - the property purchased will be held by the firm through its partners. As a firm is not a legal entity, the share of each partner in the property will be as per the partnership deed. If each partner contributes equal capital for buying this property, then all partners will have equal share on dissolution of the firm

in case of 2 and 3 - the property will be owned by the LLP and company as both of them are considered as separate legal entities which can hold property independently of the partners. On liquidation of company and dissolution of LLP, their assets will be sold and the partners will be given their respective shares from sale proceeds on basis of their shareholding in the company/LLP

Yes a partnership firm can be made and registered. You need to make a partnership deed and then same has to be registered with Registrar of Firms. Open bank account of firm and get PAN card.

Each partner can invest there share in firm, property can be purchased in name of partnership firm then and partnership firm shall sell the properties.

Better to constitute a registered partnership FIRM and do the business of buying and selling of land in the name of the FIRM, rather than in the name of 10 different partners.

If incorporating this business in India, I would suggest you to go for a Limited Liability Partnership.

Dear Client,

Register partnership deed/firm mentioning equal profit and liability of partners. Than every property shall be purchase in firm`s name and only on dissolution of firm, price of property shall be distribute among partners after sale as partition of such small plot will diminishes its value and bad partition.

Where do you intend to set up the firm?

If interested let's talk. My number is available in google .

Regards 

G.Rajaganapathy 

Lawyer 

High Court of Madras 

By registering a partnership firm the land can be purchased on the name of the firm and not in the name of the partner. 

Such share to be contributed by each member can be mentioned in the partnership deed. 

make sure that the deed mentions all the clauses exactly and precisely so that in case of any dispute in future the same can be resolved amicably. 

Regards  

In your scenario LLP will be more suitable for your business.

it can be bought in the name of the firm. Firm being a legal entity which can buy/ sell/ rent out property.
But any property so bought would always remain the property of the firm and the directors/ owners /partners can not convert the same for personal use to the detriment of other share holders.

Hi,

It's better to firm LLP rather than a partnership firm keeping in mind the number of share holders as 10. Rest of the things remain same. This means that the property would be owned by LLP as single entity.

To register a Partnership Firm, you must agree on a firm name and then establish a partnership deed. it is a document stating respective rights and obligations of the partners and to be valid it should be written and not oral.

The Registration of a partnership firm is not compulsory under Part VII of the Indian Partnership Act, 1932, though it is usually done as registration brings many advantages to the firm. It is optional for partners to set the firm registered and there are no penalties for non-registration

The partnership income tax is paid by the partnership, but the profits and losses are divided among the partners, and paid by the partners, based on their agreement. A partnership, like a sole proprietorship, is a pass-through business, meaning that the profits and losses of the business pass through to the owners.

A business partnership is a specific kind of legal relationship formed by the agreement between two or more individuals to carry on a business as co-owners. A partnership is a business with multiple owners, each of whom has invested in the business. Some partnerships include individuals who work in the business, while other partnerships may include partners who have limited participation and also limited liability for the debts and lawsuits against the business.  

1. As per the information mentioned in the present query, makes it clear that you have rightly pointed out the Partnership firm.
2. Once the firm has been registered then it can buy the property on the name of the firm, no individual partner would have sole right over the property.
3. Property will be in the name of firm only, therein all partners would be getting agreed to share the profit and loses equally.
4. This is considered to be the best way of doing the business as there are easy way to come out from the partnership and to add new partner into it as per the procedures let down in The Partnership Act.

• LLP has separate legal entity
• Liability of the Partners is limited i.e., only the amount contributed by the Partners to the firm can be used to pay off the debts of the Partnership firm
• No limit on maximum number of partners as compared to traditional partnership its 20
• LLP can also purchase movable / immovable property in its name as compared to traditional partnership, must be purchased in the name of partners

See LLP is limited liability means that every partners liability limited to shares they hold they cannot be made liable more then that. In this one partner is not liable for other partners negligence or misconduct.

Llp is mixture of proprietary concern and private ltd company. There is limited liablity.  Procedures are less and less taxation laws,  no audit compulsion,  easy transferability and major decisions can be taken by director

One big advantage to a limited liability partnership is that the partners are not personally liable and cannot be forced to pay a business debt or liability with personal property or assets. Their personal assets would be shielded from all business liability.

1. In India, for all purposes of taxation (service tax or any other stipulated tax payment), an LLP is treated like any other Partnership firm.
2. Liability is limited to each partners agreed upon contribution to the LLP.
3. No partner is liable on account of the independent or unauthorized actions of other partners, thus allowing individual partners to be shielded from joint liability created by another partner's wrongful business decisions or misconduct.
4. An LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession. Indian Partnership Act, 1932 shall not be applicable to LLPs and there shall not be any upper limit on number of partners in an LLP unlike an ordinary partnership firm where the maximum number of partners can not exceed 20.

You should get a limited liability partnership registered if you want to to get into the business of buying and selling to get into the business of buying and selling of properties along with some other people.

A limited liability partnership is a partnership in which some or all partners have limited liabilities. It therefore can exhibit elements of partnerships and corporations. In a LLP, each partner is not responsible or liable for another partner's misconduct or negligence.

A LLP exists as a separate legal entity from your personal life. Both LLP and person, who own it, are separate entities and both functions separately. Liability for repayment of debts and lawsuits incurred by the LLP lies on it and not the owner. Any business with potential for lawsuits should consider incorporation; it will offer an added layer of protection.

LLP Act 2008 gives LLP the at most freedom to manage its own affairs. Partner can decide the way they want to run and manage the LLP, in form of LLP Agreement. The LLP Act does not regulated the LLP to large extent rather than allows partners the liberty to manage it as per their will and fancies..