The position of a minor in partnership AND Registration of a firm pptx

2. “The position of a minor in
partnership
AND
Registration of a firm”
BY

3. CONTENTS
 Position of a
minor
• Minor
• Can a minor be a partner?
• Rights of a minor in
partnership
• Position on attaining
majority
Registration of a
firm
• Registration
• Is registration
compulsory?
• How registration is done?
• Changes in contents after
registration
• Advantages and
disadvantages

4. POSITION OF A MINOR
Minor:
• A person under the legal age of full responsibility.
• A minor is defined as a person under the age of
18.
• In law, a minor is a person under a certain age —
the age of majority — which legally demarcates
childhood from adulthood; the age depends upon
jurisdiction and application, but is typically 18.

5. .

6. Can a minor be a partner ?
• A minor cannot become a partner in the firm.

7. Rights of a minor in partnership
• A minor has a right to share the property and the
profits of the firm according to the agreement.
• He may have an access to and inspect and copy the
accounts of the firm.

8. Liability of a minor
• The share of a minor in the firm is liable
for the acts of the firm.
• He cannot take active part in management.

9. Position on attaining majority
A. In case of becoming partner:-
• He can perform the role of an agent and can bind the
other persons by his act.
• He can take part in the management of the firm.

10. B. In case of not becoming partner:-
• He will not be liable for all the debts and
obligations of the firm after the date of
notice.
• He has the right to sue the partners for his
share of the profits in property.

11. REGISTRATION OF A FIRM
 Meaning of Registration :
• Partnership is the result of an agreement between persons (2 to 20) who
agree to carry on a lawful business with the object of earning profit.The
name of the firm under which the business is carried on may be recorded
with the Registrar of Partnership Firms.The registration is the evidence
of the existence of the firm .

12. Is registration compulsory?
• The Partnership Act of 1932 does not make
compulsory for the firms to be registered with the
Registrar of Partnership Firms.
• However, if a firm wants to avail the benefits of
registration, it can do so by filing a statement on
the prescribed form and depositing the required
registration fee.

13. How registration is done?
• Submission of application :
(1) The name of the firm.
(2) The place of the firm
(3) The names of any other places
where the firm carries on business.
(4) The partners date of joining the
firm.
(5) The name in full and permanent
address of the partners.
(6) The duration of the firm.

14. • Certification :
On receipt of the application for registration, the Registrar examines the
particulars given in the statement. If the Registrar is satisfied with the
information supplied, the Registrar records the name of the firm in a
register called the Register of Firms. The certificate of registration is
issued to the partners.

15. Changes in contents after
registration:
• If at any time, a firm wishes to change the
name or place or wants to close the
branches, or a change takes place in the
constitution of a registered firm, the
registrar after-being satisfied, will make the
necessary changes in the record according
to the revised statement.

16. Rectification of mistakes:
• If any mistake in the document duly corrected and signed
by all the partners is brought to the notice of the Registrar
of Firms, the Registrar will rectify such mistake in the
documents.

17. Advantages of a registered firm
• Terms of agreement:
The terms of agreement are made clear to each partner in
writing which are mostly drawn by an expert lawyer.

18. Basic legal document:
• If an issue arises among the partners in the form of
statement, it becomes a basic legal document for decision.

19. Income tax:
• If a firm is registered with income tax authority also, the
profit of the firm is divided among the partners. The tax is
charged on the income of the partners individually. In case
of unregistered firm, it is the firm which pays the tax. The
partners of the registered firm, therefore, get the privilege
of lower assessment.

20. Benefits to the firm:
• A registered partnership can file suits against the
outsiders. It can also file suits against the partner.

21. Benefits to retiring partner:
• A retiring partner is not held liable for the debts of the firm
after the date of his retirement. The notice of retirement is
filed with the Registrar. This notice is considered a valid
evidence of his retirement.

22. Benefits to incoming partner:
• A new or incoming partner get complete information of the
registered firm from the Registrar’s office. He can decide
properly whether to join the firm as partner or not.

23. Benefits to the Creditors :
• The partner of a registered firm cannot deny from the
membership by the firm. The creditors of the firm, thus,
can hold one or all the partners liable for the payment of
the debts.

24. Effects of Non-registration :
• No suit by a partner against the firm or the other partner
• No suit by the firm against third parties
• Third party can file a suit

25. Examples of registered
companies
• Abbott laboratories (Pak) limited.
• Bata Pakistan
• Diamond industries
• Gul Ahmed textile mills limited
• Honda Atlas cars (Pakistan) limited
• Karachi electric supply corporation limited
• Oil and gas development company limited (OGDCL) Pakistan
• PTCL
• PIA
• Shell gas and LPG

26. • Sui Northern Gas pipelines limited
• Unilever Pakistan
• UBL,MCB,KASB bank limited,Bank Al Habib Ltd,Bank
Alfalah Ltd,Bank of Punjab and Allied bank Ltd.