Regular partnership firm trading (f&o) & investment

Hi @nithin

I have a query with respect to partnership formation and legal requirements

I want to open a partnership where I can Invest and also trade (f&o) in stock market

Contributions will be from me and my brother… We might show loans from Dad and Mom

Fund will be used to invest in share, mutual fund, purchase of gold.

We will pledge those to trade in derivatives

Issue / Query

  1. Can we open a partnership account for the above reason

Investment as our objective
Or can we use some other objective and also show investment objectives in it.

  1. Will NBFC registration will be required.

100% revenue and asset is a financial income and asset. (50:50 rule criteria is getting fulfilled).

I know only company registered under companies act can become a NBFC. But there in FAQ ( RBI SITE) there is a question that indicates on unincorporated (proprietorship/partnership). I was not able to understand that clearly.

  1. Use of profit

Against expenses relating to trading like software, rental,etc
Salary to working partner
Interest to parents for Contributions (ok in form of loan) from there end in our firm


We will not use anyone else fund except our own money.

Have you checked this thread

Btw for the purpose you have stated, that is your own money; partnership should be okay. The objective for the partnerhsip, maybe speak to your CA about this.

No NBFC registration for partnerships.

Yep, this should be possible.

1 Like