Admission of Partners in a Partnership Firm

A partnership firm is a type of business organization in which two or more persons come together to carry on a business with a view to earning profits. The persons who come together to form a partnership firm are called partners. The admission of partners in a partnership firm is governed by the provisions of the Indian Partnership Act, 1932.

Eligibility Criteria for Admission of Partners

The following persons may be admitted as partners in a partnership firm:

a) An Illiterate Person of 19 Years: An illiterate person of 19 years or above can be admitted as a partner in a partnership firm. However, such a person may face some difficulties in understanding the terms of the partnership agreement and other legal documents.

b) A Person of Unsound Mind: A person of unsound mind cannot be admitted as a partner in a partnership firm. Such a person is not capable of entering into a valid contract and cannot be held responsible for his actions.

c) A Convict Undergoing Sentence for a Criminal Offence: A convict undergoing sentence for a criminal offence cannot be admitted as a partner in a partnership firm. Such a person is not considered to be of good character and may bring disrepute to the firm.

d) An Insolvent Person: An insolvent person cannot be admitted as a partner in a partnership firm. Such a person is not in a position to contribute to the capital of the firm and may also have a negative impact on the reputation of the firm.

Conclusion

In conclusion, an illiterate person of 19 years or above can be admitted as a partner in a partnership firm, provided he/she understands the terms of the partnership agreement and other legal documents. However, a person of unsound mind, a convict undergoing sentence for a criminal offence, and an insolvent person cannot be admitted as partners in a partnership firm.

Because the person of age 19 year is a major and hence allowed to participate in partnership it doesn't matter that he is literate or not.