Partnership firm registration

Select a suitable firm name

Firm name is merely the name under which the partners carry on their business. It is therefore only a conventional name applicable only to the persons who on each particular occasion when the same is used are members of the firm. It is only a conventional mode of designating the persons composing it. So if, for example, a legacy is left to a firm, the legacy is payable to those who composed the firm at the date of the will.

Partners are entitled to carry on their business under any name they like. If it does not contravene any provisions of law. But they are not at liberty to mislead the public by using a name similar to the name of another firm or comprising a name or description of goods which has become distinctive of and indicates goods produced by another firm. To pass off themselves for or their goods as being the goods of that other firm.

Even though no one can be restrained from carrying on business in his own name or in one he has acquired by reputation. Whether alone or in partnership with others. He must use the name honestly and not in such a manner as to deceive people into believing that his business is connected with the business of another.

A firm name may be registered as a trademark for particular classes of goods. But cannot be assigned except in connection with the business with which it has been used.

Should a minor be admitted in the partnership?

Your decision to include a minor as a partner in a firm should be based on the following basic principles relating to minor :

(a) A person who is a minor according to law may not be a partner in a firm. The agreement of all the partners for the time being. He may be acknowledged to the benefits of partnership. A contract entered into with a minor is nullity for want to competence. The contracts of minors in India are void ab intio and not voidable.

Hence, a minor cannot be a partner in a firm, but that he can be admitted to the benefits of partnership. Benefits of partnership include benefits which the minor would enjoy if he were a major. Minor admitted to the benefits of partnership is not a partner, is only entitled to the benefits of partnership.It will be liable to losses but not personally.

(b) Such share of the property has a right to a minor. The profits of the firm as may be agreed upon. He may access all the accounts of the firm.

(c) The shares of such minor’s share for the acts of the firm is liable. But he is not personally liable for any such act. Hence, the creditors of the firm can proceed only to the extent of the minors interest in the property of the firm and not personally.

(d) Such minor may not request the partners for an payment or account of his share of the profits or property of the firm.  except when he intends to server his connection from the firm.

(e) With in six months of such minors of his attaching majority or his knowledge as been the benefits of partnership.  whichever date is later, may give public notice that he is to be elected a partner or not in a firm.

(f) If any person has been declared as a minor to the benefits of partnership in a firm. Such person had no knowledge of such admission until he his attaining majority of shares.

(g)If he becomes a partner :

i. his liabilities and rights shall continue to those minor under this section. He will produce an public notice.

ii. his share shall not be liable for any acts of the firm done after the date of the notice.

iii. he shall be authorized to ask the partners for his share of the property and profits.

 

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