Partnership to Sole Proprietorship


Hi Everybody

We run a partnership firm of 2 partners on multimedia services in Bangalore, we had registered our partnership deed, PAN and the Service Tax in 2008. Now one of the 2 partners wants to retire on mutual agreement and the other partner wants to continue the business with the same name and services in a new address as a sole proprietor.

Can anybody help what is the procedures to dissolve the partnership and continue as a sole proprietorship in regards to the deed, registrar, PAN, Service Tax & Banking.

Thanks.

 
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Advocate

The general procedure is to write a dissolution deed stating the facts along with the fact that the same business shall be continued as a proprietary business and such deed should be submitted with the relevant form to the Registrar and also a notification must be published in the state gazzette and a copy must be delivered to the Registrar, who shall thereafter strike the name of the firm from the register maintained by him.

As far as PAN & service tax is concernedyou need to surrender both and take a fresh service tax registration on your pan number similarly you have to close the existing bank account and start a fresh account.


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Hi Mr. Vishal,

Thanks a lot for your advice,  this would help me a lot.

Will my PAN, Service Tax Number & Bank Account Number Change for this? Will it be like starting a new Business?

 

regards

Vinod

 
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Also Should the deed be attested by a Notary?

 
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Advocate

Will my PAN, Service Tax Number & Bank Account Number Change for this?

Ans. Yes since it is a proprietary business you individual PAN No will be applicable, secondly since Service Tax No is PAN based even for that you need fresh registration and thirdly since the bank account is a firm account a fresh account need to be opened since the old account cannot be changed from a partnership account to a proprietary account.

Will it be like starting a new Business?

Yes it is like old wine in a new bottle.

Also Should the deed be attested by a Notary?

The dissolution deed needs to be registered with the registrar of firms and in my view notary is unacceptable.

 
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