Procedure for converting partnership in to proprietorship firm

SHANKY CHOPRA (Querist) 29 September 2014 This query is : Resolved
sir,
i want to know the complete procedure for converting partnership firm in to proprietorship firm and the legal formalities also.

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R K JAIN (Expert) 30 September 2014
Write a deed for dissolution of partnership firm and any partner can become the proprietor of the firm or the firm can be transferred to third person.

Rajendra K Goyal (Expert) 30 September 2014
Final accounts and dissolution deed of partnership has to be prepared clearly mentioning how and on what terms the assets has been transferred to proprietorship.

malipeddi jaggarao (Expert) 30 September 2014
There are two ways:

1) Make a retirement deed leaving only one partner. The partnership will automatically become Proprietorship. If it is registered Partnership deed, register the retirement deed with Registrar or Firms and intimate that the Partnership firm may be treated as Proprietorship concern.

2) Dissolve the Partnership by Deed of dissolution, register it Registrar of firm and form a new Proprietorship concern.

As regards settlement of accounts, it is among the partners to prepare the final accounts and settle the issues. In the retirement deed or dissolution deed (as the case may be) a recital regarding the settlement of accounts stating that the accounts are settled may be inserted for sake of good order and to avoid future disputes.