Can Company Partners Draw a Salary and Handle PF/ESI Like Employees? Seeking Advice!

Dear All,

We are starting a company, in fact a partnership company with two persons. We have no idea about salary rules. Can we take a salary as employees while being owners at the same time? If we can take a salary along with all other employees, should we pay PF and ESI from our salary? If so, what about the employer side of PF and ESI - should we pay for ourselves from the company as well? Please help.

In a partnership firm, partners can take a salary, but there are many conditions that are applied as per the Income Tax Rules.

Irrespective of the nature of a company, salary is governed by the IT rules that define compensation and by the labor laws of the country/state, and then other provisions of the S&E/local municipal bodies. Best is to get a C.A to do it all.