Legal Validity and Flexibility
A partnership firm is allowed to engage in more than one business activity if permitted by its internal agreement.

• No statutory restriction on carrying multiple businesses
  
• Activities must be lawful and not in violation of government rules
  
• The partnership deed must list or allow for expansion into multiple ventures
  
• Each business must be related or unrelated, as agreed by partners
  
• The firm can operate all businesses under one PAN and one legal entity
  

Partnership Deed Requirements
To operate multiple businesses legally and transparently, the partnership deed should include specific or broad activity clauses.

• Clearly mention all proposed business activities
  
• Use inclusive phrases like “and any other lawful business.”
  
• Update the deed when a new business is added later
  
• State how profits and losses from each business will be handled
  
• Assign roles and responsibilities for each business among partners
  

Taxation and Accounting Considerations
Even with multiple businesses, the firm is treated as one tax entity, but must maintain clear and separate records for each business.

• A single PAN is used for income tax filing
  
• Income and expenses from each business should be accounted for separately
  
• GST registration may require multiple registrations if businesses are in different states
  
• Financial statements must clearly distinguish the performance of each unit
  
• Audits, if applicable, should cover all business activities under one umbrella
  

Operational and Strategic Implications
Running multiple businesses can offer growth but requires careful planning and management.

• Helps diversify risk and revenue streams
  
• Enables leveraging common infrastructure and staff
  
• Requires effective internal control and reporting mechanisms
  
• May need distinct teams or partner involvement for each activity
  
• Ensures better utilization of partner skills and capital
  

Banking, Licensing, and Compliance
While one firm can have many businesses, each business may need specific operational registrations or approvals.

• Bank accounts can be maintained under the same firm name
  
• Separate trade licenses may be needed for different activities
  
• Compliances like FSSAI, GST, Shops & Establishment must be obtained per business type
  
• Partnerships must ensure that none of the businesses are legally conflicting
  
• Notify government authorities or update business profiles when new activities are added