Can we open a Demat account in the name of a partnership firm?

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Yes, you could open a demat and trading account in the name of a Partnership Firm, Private Limited Company, HUF, Trust or any other organization.

Here are a few facts:

Simillar to an individual account, you could open multiple demat accounts on a company name.
The account opening process for company's is manual by filling paper form.
Managing the demat account for the company is as convenient as you do individual accounts.
You will have to use ASBA (net banking) to apply for IPO using this account. UPI cannot be used as UPI is for individuals only.
All earning from a company account goes to the company and this lible for tax as per company's account.
In case of Pvt Ltd companies, Memorandum of Association document may require updates. Please consult your CA for this.

Topic: Where to open a demat account? Article

2 Comments

2. Mrinal Sarkar

| Link|February 8, 2024 3:54:40 AMReply

I apply IPO from partnership demat account.Then what is the tax rate to profit?

1. goutham

| Link|September 13, 2023 10:33:46 PMReply

"Simillar to an individual account, you could open multiple demat accounts on a company name."--- can you please provide SEBI detailed guidelines on this

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