You would not get shop licence in name of XYZ Agencies if firm is registered in name of ABC industries
I have a registered partnership firm named in M/s ABC INDUSTRIES carrying out manufacturing of XXX products. I want to start new trading activity (excluding existing XXX product) in the same partnership firm to enhance my sales turnover, but want to start trading activity with new name say M/s. XYZ AGENCIES sharing common GST and PAN. I had already amended in partnership deed of M/s. ABC INDUSTRIES to do any additional business with any trade name clause in my deed. But when I went for shop act license for M/s. XYZ AGENCIES, they refused and said license will be issued in name of M/s. ABC INDUSTRIES only as the partnership deed is in the given name and not in the name of M/s. XYZ AGENCIES. So can it be possible ? And if yes what should I do ? Please provide your guidance.
You would not get shop licence in name of XYZ Agencies if firm is registered in name of ABC industries
It is possible.
You ABC appoint XYZ as your agency for distribution of product of ABC and enter an agreement of franchisees in between ABC and XYZ authorized them for marketing, sales and distribution of product of ABC .
You can have same GSt and Pan for another identity. Have to obtain separate for it.
Shop act registration is different than partnership firm. Both will have separate identity.
- Since, there is a partnership firm existed in the name & style of M/s ABC INDUSTRIES, and further you got allotted the GST and PAN card in that trademark , then legally these documents cannot be used for getting a licence for carrying some other business in the name of M/S.XYZ Agencies legally.
1. For EACH legal entity, a separate PAN /GST /CIN /other Licenses, has to be mandatorily obtained and compliance's filed. There is no exception to this, even if the other co. /firm is a sister firm.
2. Obtaining common PAN /GST /CIN /other Licenses, would cause gross legal litigation's and in the event of any misdeed, the statutory agency would stay /cancel the registration /licences and business would halt /stop.
The business done in the name of XYZ Partnership firm shall be the business confined to that company alone.
Your act of amending the partnership firm at your whims cannot have the support of law.
Thus if the business license obtained in the name of partnership firm of ABC may not be allowed to the XYZ firm.
If the licensing authorities deny the license ot permission, do you think you can get it flouting the law.
A new business cannot be started in a new name when the documents and the partnership firm is to remain the same.
You have to establish a new partnership firm for this.
Serve them with a legal notice and than file a specific performance suit against them for getting the required license
two trade names are not possible in one GST registration number,but the applicant can move for another GST registration in the same PAN
Dear Sir/Madam,
Whatever said by the concerned authority is correct and you have the option to run the work with the earlier name i,e, ABC INDUSTRIES or you are suggested to create the separate PAN and GST for the existing XYZ agencies.
You can open new firm XYZ agencies and use all operational unit and employees of ABC industries. Only name will be different and functions will be operated if both the Companies.
GST and PAN no. can be same for two or more firms. The amended clause of M/s ABC industries is merely giving you the right to start any new business. But for the new firm with new name, you need to execute new deed and get the license on that.