Question

A partnership firm has 45 partners. It wants to admit 7 more partners into partnership. Only ____ more partners can be admitted in the partnership firm according to Companies Act, 2013.

• A. 1
• B. 6
• C. 5
• D. 3

Hint:

Always remember that the maximum number of partners allowed in a partnership firm under the Companies Act, 2013, is 50 unless registered as a company.

Answer 1

The Correct Option is C

Section 464 of the Companies Act, 2013 stipulates that a partnership firm may have up to 50 partners, provided it is not registered as a company. With the current firm having 45 partners against the maximum limit of 50, the calculation for additional partners is as follows: \[ \text{Remaining partners that can be admitted} = 50 - 45 = 5 \]. Consequently, the partnership firm can admit 5 additional partners.