Dissolve partnership
Break Water
(Querist) 12 May 2012
This query is : Resolved
Hi,
We have started the partnership firm (including me and other one) in 2010 and did the below process as of now.
1. We have prepared the partnership contract details on stamp paper and for the same we did the notary (included our firm's name).
2. Registered our firms name and address with local town’s municipality.
3. Procured the CST/GST number on basis of above document.
4. Procured PAN number of our firm.
5. Opened current account with nationalized bank of our firm.
As my other partner is not doing much activity so I want to remove him and include other but I want to keep the firm name same as it is as well as CST/GST number, PAN Number and bank account.
For your information, we have not registered the partnership firm with registrar office and with district industrial center (as SME or SSI unit). But now we are looking for those processes also.
Currently the firm is not started full fledged.
Your advice would be much appreciated.
Thanks.
ajay sethi
(Expert) 12 May 2012
if your partner is willing to retire then you can add new partner .
A V Vishal
(Expert) 12 May 2012
Advisable to start a new firm instead of continuing the old unregistered firm.
Suhail A.Siddiqui
(Expert) 12 May 2012
start new firm since it has little problem to run
ashutosh mishra
(Expert) 13 May 2012
Although I agree with advise of Brother Vishal but it is possible that you get the firm registered as it is with registrar of firms then induct the new partner get his name added in registrar's register and then let your brother retire and let the fact be recorded again in the register of registrars.Only doing this way can save old things you mention,otherwise the moment your brother retires the firm gets dissolved ipso facto as there can not be partnership without 2 partners.
malipeddi jaggarao
(Expert) 14 May 2012
I agree with Mr.Ashutosh. First admit new partner and then your existing partner can retire with mutual consent and settlement of accounts. This will protect the firm's name, PAN, VAT, CST etc., As far as registration is concerned, it is not mandatory. If you do not register the firm, you can sue the other parties in the name of the firm. That is the disadvantage. First come to an understanding with your existing partner for admission of new partner and then retirement of existing partner. This activity should be on two different dates as you can document both and admission and retirement on the same day, whether the existing partners are only two. Once these two acts are over and documentation is over, if you wish, you can take up for registration with the concerned Registrar of firms.
Break Water
(Querist) 15 May 2012
Thanks all of you for your valuable advice.
I had talk with my current partner and he is ready to leave. So now here, what process I need to do to remove him and include other two as partner.
As mentioned earlier that, I want to keep all the existing procured PAN, VAT, firm name and website.
Is it mandatory to register partnership firm with regional registrar. If yes, then what are the benefits for the same.
Break Water
(Querist) 18 May 2012
Many thanks all experts for your advice.
For your information, we have not registered the partnership firm with registrar office and with district industrial center (as SME or SSI unit).
So now what I understand for your advise is that I have to follow below steps.
1. Prepare a legal document which includes removing the current partner (it is not registered with registrar).
2. Prepare a legal document which includes adding new two partner.
3. Register the partnership firm with registrar.
4. Inform to PAN and VAT departments including Bank regarding the same.
Please correct if I am going in different direction.
Thanks.
