Corporate body can be admitted as a partner

Explanation:

Corporate body refers to a legal entity such as a company. According to the Indian Partnership Act, 1932, a partnership is an association of persons who have agreed to share profits of a business carried on by all or any of them acting for all. The act does not prohibit a corporate body from being a partner in a partnership firm. Hence, a corporate body can be admitted as a partner in a partnership firm.

However, it is important to note that a corporate body cannot become a partner in a partnership firm without the prior approval of all the existing partners of the firm. Additionally, the partnership deed should also contain the provision for admitting a corporate body as a partner.

Advantages of admitting a corporate body as a partner:

1. Limited liability: The liability of a corporate body is limited to its share capital, and hence, the risk of loss to the partnership firm is limited.

2. Expertise and resources: A corporate body may have access to greater resources and expertise, which can be beneficial for the partnership firm.

3. Continuity of the partnership: A corporate body has perpetual succession, and hence, its admission as a partner can ensure the continuity of the partnership firm even in the event of the death or retirement of the individual partners.

Conclusion:

In conclusion, a corporate body can be admitted as a partner in a partnership firm subject to the approval of all the existing partners and the provision for the same in the partnership deed. The admission of a corporate body as a partner can have several advantages for the partnership firm, including limited liability, access to greater resources and expertise, and continuity of the partnership.